Over 100 IHG properties to be reflagged as Sonesta hotels
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
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.
Featured image courtesy of the InterContinental San Juan
Welcome to The Points Guy!
WELCOME OFFER: 80,000 Points
TPG'S BONUS VALUATION*: $1,600
CARD HIGHLIGHTS: 3X points on dining and 2x points on travel, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®.
- Enjoy benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining and 2x on all other travel purchases, plus more.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.