Over 100 IHG properties to be reflagged as Sonesta hotels
A payment dispute between InterContinental Hotels Group and an investment company that owns more than 100 hotels under the IHG brand has led to a dissolution of the management and branding relationship between the two entities.
As a result, 103 hotels that currently fall under the IHG family of brands will be reflagged as Sonesta properties in the coming weeks.
According to Travel Weekly, Service Properties Trust (SVC) says that IHG did not pay over $8 million in guaranteed returns to the company's 103 owned properties in July and that it missed another $17+ million that came due Aug. 1.
The current relationship is set to expire in November of this year with all 103 properties transitioning to the Royal Sonesta, Sonesta and Sonesta ES Suites brands on or around Nov. 30.
The 100+ properties being reflagged include dozens of extended-stay and full-service hotels across six brands in the U.S., including three InterContinentals, three Holiday Inns, five Kimptons, 11 Crowne Plazas, 20 Staybridge Suites and 61 Candlewood Suites.
Notably, hotels such as the InterContinental San Juan and Kimpton hotels in Washington, D.C., Chicago, Portland and Seattle will leave IHG, eliminating some high-end options for those with IHG points to burn.
Once these hotels fall under the Sonesta family, it will increase the chain's footprint significantly in North America, bringing it to 160 properties total in the United States.
In a press release from SVC, John Murray, President and Chief Executive Officer of SVC, noted that Sonesta currently manages 16 properties that were reflagged from IHG in 2012, and they've seen increases in both total annual revenue and EBITDA after their conversion. The chain believes these new-to-the-family hotels will see similar results once individual markets and the travel industry at large stabilize in the coming months and years.
TPG featured card
at Capital One's secure site
Terms & restrictions apply. See rates & fees.
| 5X miles | Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel |
| 2X miles | Earn unlimited 2X miles on every purchase, every day |
Pros
- Stellar welcome offer of 75,000 miles after spending $4,000 on purchases in the first three months from account opening. Plus, a $250 Capital One Travel credit to use in your first cardholder year upon account opening.
- You'll earn 2 miles per dollar on every purchase, which means you won't have to worry about memorizing bonus categories
- Rewards are versatile and can be redeemed for a statement credit or transferred to Capital One’s transfer partners
Cons
- Highest bonus-earning categories only on travel booked via Capital One Travel
- LIMITED-TIME OFFER: Enjoy $250 to use on Capital One Travel in your first cardholder year, plus earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening - that’s equal to $1,000 in travel
- Earn unlimited 2X miles on every purchase, every day
- Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel
- Miles won't expire for the life of the account and there's no limit to how many you can earn
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
- Enjoy a $50 experience credit and other premium benefits with every hotel and vacation rental booked from the Lifestyle Collection
- Transfer your miles to your choice of 15+ travel loyalty programs
- Top rated mobile app