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Over 100 IHG properties to be reflagged as Sonesta hotels

Aug. 27, 2020
2 min read
Over 100 IHG properties to be reflagged as Sonesta hotels
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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.

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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.

Featured image by DENNIS RIVERA

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3XEarn 3 Points per $1 spent at Gas Stations, Air Travel and Hotels
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    For a limited time, earn 80,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first 3 months of account opening

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  • Points transfer to 16 airline programs, from JetBlue to Virgin Atlantic.
  • World Elite Mastercard benefits, extended warranty, damage and theft protection.

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  • $95 annual fee
  • Lacks travel protections that other travel rewards cards come with
  • For a limited time, earn 80,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first 3 months of account opening
  • Earn 3 Points per $1 spent at Restaurants and Supermarkets
  • Earn 3 Points per $1 spent at Gas Stations, Air Travel and Hotels
  • Earn 1 Point per $1 spent on all other purchases
  • Annual Hotel Savings Benefit
  • 80,000 Points are redeemable for $800 in gift cards when redeemed at thankyou.com
  • No expiration and no limit to the amount of points you can earn with this card
  • No Foreign Transaction Fees on purchases