IHG and The Family of Orange Lake Resorts Announce Strategic Alliance to Create a New Timeshare Brand, Holiday Inn Club Vacations
LONDON .- IHG (InterContinental Hotels Group) [LON: IHG, NYSE: IHG (ADRs)], the world’s largest hotel group by number of rooms, announces today the formation of a strategic alliance with The Family of Orange Lake Resorts (Florida, USA) to create a new timeshare brand, Holiday Inn Club Vacations.
Holiday Inn Club Vacations will launch in December 2008 with Orange Lake’s flagship 2,412 villa property in Orlando, Florida - the largest single site timeshare resort in the world. This marks IHG’s first move into the timeshare market, one of the fastest growing segments of the U.S. holiday and vacation industry. [Source: American Resort Development Association (ARDA)]
The conversion of the remaining Orange Lake resorts in Ascutney, Vermont (60 villas), Lake Geneva, Wisconsin (68 villas) and Panama City, Florida (18 villas) are scheduled to follow shortly after.
This alliance allows IHG to enter the timeshare industry, through an exclusive licensing and marketing agreement. Orange Lake, which is owned by the Wilson family, the founders of Holiday Inn, will continue to own, operate and develop these timeshare resorts.
“This deal reinforces the strength of the Holiday Inn brand as we are able to move into the timeshare market with a good partner who knows the business well,” said Andy Cosslett, Chief Executive, IHG. “We believe that timeshare is a natural progression for Holiday Inn due to our scale and customer base in North America. This comes at a time when the $1 billion global relaunch of Holiday Inn is progressing well. This agreement fits well with our business model as we are able to introduce the Holiday Inn brand to a new set of customers without the need for capital investment. With both companies focused on growth, the alliance brings with it the opportunity to expand into major North American destinations.”
The flagship resort in Orlando, located next to the new north entrance of Walt Disney World® Resort, has 2,412 villas set in over 1,400 acres and includes:
* 4 championship golf courses
* 7 swimming pools including a 12-acre outdoor entertainment complex
* 80 acre lake for water sports
* Five dining options
* Retail and pro shops
“This is a great opportunity for our two companies because we share the same heritage and founder, Kemmons Wilson,” said Don Harrill, President and Chief Executive Officer for The Family of Orange Lake Resorts. “It was Kemmons’ vision that changed the landscape for family vacations through his creation of the Holiday Inn hotel brand in 1952. With the re-launch of Holiday Inn and the continued growth of our company, we are prepared to reach new heights for our customers-and together write the next exciting chapter in our history. We believe this alliance will set the new standard by re-defining ‘quality time’ for families and for the timeshare industry today.”
The marketing and licensing agreement also includes:
* The construction of a Holiday Inn Resort hotel on the Orange Lake site in Orlando
* The marketing and rental of timeshare villas through IHG’s extensive reservation system and distribution channels, including Priority Club Rewards, the world’s largest hotel loyalty programme with over 39 million members
* The formation of the Holiday Inn Club exchange programme which allows members of Holiday Inn Club Vacations to exchange timeshare weeks for hotel nights at IHG’s portfolio of over 4,000 hotels.
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