Just been announced that IHG are losing their entire portfolio from the Darwin market 1st May.
Both the Crowne Plaza's and Holiday Inn's management rights have been won by the Hilton International group. With this announcement, Hilton has made public, their intention to introduce a brand not currently existent in Australia - DoubleTree - which is their brand counterpart to IHGs Crowne Plaza.
Several very interesting points come out from this;
- IHG, one of the two largest hotel groups in the world, let go of four properties in one city. This has to be strategic, no company could possibly get caught with their pants down this badly.
- Hilton launching a new brand in Darwin - of all places, the market is very unique there and it's one very gutsy move. If IHG did walk away, there were bound to be reasons, such as lack of service consistency and poor revenue, which are some of the reasons why major players like Starwood do not have any properties up there.
- Gives IHGs largest rival Accor, an even larger presence.
Time will tell.