Scott Bunce 4+ Years Of Innovation

IHG©

4+ Years Overlapping Project Management

Scott Bunce – IHG Project Management

Date if required Private and confidential 1

• Program Initiation: Tim Genovese

• Methodology: Agile approach

• Tools Used: Owner Interviews, Design Partner Interviews, Development Sales Interviews, Owner Relations interview, GT partnership, System Analysis

• Before & After: From old PIP Tracking Tool to Launch

• Program Success: Launch Dec. 2014

• Unique Challenges: GT

• Overcoming Challenge: Constant Involvement & Reporting


Design Project Manager

DPM

IHG©

Agenda

• Baseline/Current State

• Research

• America’s D&C Update

– DPM Project Scope

– DPM Overview

– DPM Future Interfaces

– PIP Process

• DPM Conceptual Wireframe

– DPM Timeline

• Outcome / Success

• Q&A

Private and confidential 4

IHG©

Baseline/Current State D&C


• Customer research with external owners, architects, and design professionals (internal stakeholders)

• The need to be more competitive in the marketplace

• Customer requests for shorter, more direct PIPs with a faster turnaround

• Knowledge that our current manual process lacks efficiencies

• The need for a more robust tracking / project management system (current PIP tracker 10+ years)

IHG©

Research

• 19 Key Stakeholders and Corporate Staff Interviewed

• 28 Owners, Architects & Designers Interviewed

• Benchmarked PIP’s with Hilton, & Starwood Brands with focus on Marriott

• Feedback from 30 Architects & Designers from initial D&C Immersion program in May


• Global Technology, Global D&E Team & PMO Teams involved In DPM Technology Development

• Design & Construction Key team members: Cinja, Tony, Michael, Lauren, Kelvin, Gil, Shannon, Gary

• Discussion and feedback from entire D&C team at Art U change management session

IHG©

Project Scope


IN SCOPEReplace current legacy system

Provide real-time system integration

Standardize processes

Workflow capability

Milestone and activity alerts

Mobile visit updates

Internal and External dashboards

Bluebeam integration

OUT OF SCOPE[x] SRD scheme and prototype management

[x] Large format scanners and Printers

IHG©

D&C PIP System Journey


Old State - PIP Tracker Current State – PIP Tracker Future State - DPM

• Bottlenecks identified

• Updated phase 1 & 2 of Digital

Library (DIL) improvements

• HingePoint selected and

drilling down system

requirements

• BlueBleam rolled out for

electronic plan review

• New consistent PIP Templates

being rolled out for all brands

• Working with global

technology and global D&E

teams

• System build out beginning in

June

• Manual PIP’s taking weeks to

deliver, and leading to copy

and paste mistakes

• Heavy PIP size, anywhere

from 50% – 75% longer than

competitor PIP’s

• Inefficient manual process of

cut and paste from PIP’s to

Plan Review

• PIP Tracker 10+ years old, on

an Access database with no

connectivity

• No owner visibility

• Slow response time and

lacking integration to systems

• External customer interface

• Internal and external

dashboards for Owners

and key IHG staff

• Automatic alerts and

reminders as to upcoming

milestones and past due

dates (internal / external)

• System working end to end

interfacing with current IHG

legacy systems

• Integrating BlueBeam plan

review into DPM

• DPM scheduled to be

functional by late 2014

IHG©

High Level Vision PIP Tracking System (based on CTQ’s)


PIP Project Example

New D&C PIP Tracking System (Database)

HOMORM QEM

Data on owners & projects including correspondence fed to/from ORM

Continue link to HOM tasks for Conversion projects

Pull data on quality issues to include in PIP. Push data on project scope, schedule, Waivers, etc.

Growth

Pull ‘System of Record’ data for Hotel Contracts

Ale

rts

Ale

rts

Other systems

I.e. BlueBeam, Design Connect, HeartBeat, HCM, Alfresco, QEM, DIL

IHG©



PIP Project Example

Electronic PIP Request


Info prepopulated from:Hotel Content Manager, QEM, ORM

PIP Walkthroughw/ PIP Tablet (DIL)

Scope & PhotosLoaded into Project Tracking. Report automatically produced

Design Scheme Selection w/3D Design Tool

PIP, Plan or Owner browse & select SRD scheme in 3D Design Tool. Choice is logged in system

Electronic Plan Review –(Bluebeam)

Construction Visits

Owner upload plans. Electronic review w/ scope & comments logged in system

PIP scope, plans, photos & review approvals available on PIP Tablets

HOMORM QEM



Pull data on quality issues to include in PIP. Push data on project scope, schedule, waivers, etc.

Growth


Ale

rts

Other systems


Ale

rts

Ale

rts

Ale

rts

IHG©



PIP Project Example

Electronic PIP Request


Info prepopulated from:Hotel Content Manager, QEM, ORM

PIP Walkthroughw/ PIP Tablet (DIL)

Scope & PhotosLoaded into Project Tracking. Report automatically produced

Design Scheme Selection w/3D Design Tool

PIP, Plan or Owner browse & select SRD scheme in 3D Design Tool. Choice is logged in system

Electronic Plan Review –(Bluebeam)

Construction Visits

Owner upload plans. Electronic review w/ scope & comments logged in system

PIP scope, plans, photos & review approvals available on PIP Tablets

HOMORM QEM



Pull data on quality issues to include in PIP. Push data on project scope, schedule, waivers, etc.

Owner Dashboard

Internal Dashboard

Growth


Ale

rts

Ale

rts

Reporting

Alerts

Other systems


Ale

rts

Cloud Storage

IHG©

Future State

13

DPM

Salesforce

Ops Suite

Scheduler

GROWTH

HOM

HeartBeat

QEM

Alfresco

In/Out

Inbound

Outbound Outbound

In/Out

Future PIP Interfaces

HCM

PeopleSoft

Inbound

Inbound

Gmail

Outbound

Inbound

IHG©

New PIP Template


• Consistency among all brands in Americas (potentially other regions)

• Improve owner’s perception of IHG/ Design & Construction

• Ease of use (scope is more focused) – internal and external

• Modifying the current process/approach in anticipation of coming technology

• Enabling efficient and effective consulting

• Capability of PIP in a day when DPM is complete

• Manual introduction / Electric format with DPM

IHG©

Comparing Old Versus New

Different versions of the template with different versions of cover letters

Information added into the PIP that is available elsewhere

Resource links repeated throughout the file

Pictures, pictures and more pictures

Disclaimers, disclaimers and more disclaimers

Design guidance and standards copied in to sections

Details entered on the item level

Canned statements listed in Life Safety section


Simplified format

Fewer key descriptions

Less formatting

Fewer pages

Picture removed (with exceptions)

Milestones listed in the front

Streamlined verbiage at the item level

Descriptive cover letter

ADA and Life Safety sections pared down and moved to the end

Comments more direct and to the point

IHG©

Review upscale templatesPrivate and confidential 16

IHG©

Philosophy of the new templates

Direct use of terms; Provide – Replace – Modify as the action descriptor for each specified item

Use pre-populated statements when they are appropriate

Streamline the teams time necessary to write the PIP scope

Use the cover letter to insert your creative expertise and market insight

Cover letter allows us to frame necessary PIP scope to market assessment and competitor attributes


IHG©

Cover Letter Format

Dear Mr. XYZ,

Describe the competitive landscape (market, local competitors – an expanded version of the property summary provided for FAC)

Provide insight from Guest Experience (data from QEM to identify keys issues, areas of concern or positive highlights)

Share the Brand Strategy (and how it relates to this property physically)

Elaborate on High Level Issues

Sincerely,

Joe Pipper


IHG©

Guidelines for Use

1. Current state pictures are not included in the PIP unless they are vital to making a point

2. Use the cover letter or the sub-areas to elaborate with your creative and design expert comments

3. Moving to the Provide, Replace, Modify as the three key actions

4. Don’t include why something needs to be changed, just note the need:

Example:

Replace drapery

~versus old~

Style of guestroom drapery is dated and should be replaced with a current approved design package. Please refer to the IHG Design and Construction website ihgdesignconnect.com (passcode: games) for various resources required for the successful implementation of your PIP including Brand Standards, Design Guidelines, and information on the Standardized Room Design program


IHG©

Project SummaryWireframe Prototype


IHG©

High-Level Timeline


Design

Develop

Deliver

04/14 05/14 06/14 07/14 08/14 09/14 10/14 11/14 12/14

Dis

cove

r

Kickoff Research

De

sign

Definition Screens Workflow Workflow Workflow

De

velo

p

& D

esi

gn

Prototype System Build System Build System buildSystem build &

Pre-UAT

De

velo

p&

De

live

r

System Build Integration UAT Launch

Proposed Regional TrackRegional adaption is

proposed after AMER core

functionality and systems

integrations are developed.

Design

Develop

Deliver

IHG©

Measuring Success


IHG©

• Tools Used: Review of all revenue management systems, global interviews

• Before & After: From “no tool” to wire frame and “go forward plan”

• Measurement Plan: Signed off scope of work & final presentation

• Program Success: Completed on time and with in budget

• Unique Challenges: Hands off & lack of feedback

• Overcoming Challenge: Enforcing status meetings

.


Global Revenue Management Dashboard

IHG

Performance Management / Dashboard Strategy

Room Performance Metrics Definition –Analyze Phasev.4.0

24

The objective of the IHG Room Performance Metric Definition Project is to increase the visibility, consistency and efficiency of measuring room revenue.

The scope of the project is Room Revenue Performance Metrics and Predictive Modeling capabilities. As part of the project AnswerAnalytics will analyze and define enterprise Room Revenue Metrics used to improve strategic planning, room forecasting, and performance reporting.

Objective and Scope

25

AnalyzeMeasurePlan Improve

Plan


Start wk 3 wk 6wk 1 wk 2 wk 4 wk 5

Room Performance Metrics

Improve

Room Performance Metrics Strategy Approach • Plan

• Measure

• Analyze

• Improve

MeasureAnalyze

wk 7

Stage1

Stage2

Stage3

Stage4

Timeline & Deliverables – Analyze PhaseWe are here

• Road Map

• Interview Questions

• Current State POV

• Room Revenue Management Measure Phase POV

• Categorized and Catalogued Room Revenue KPIs

• Room Revenue Information Strategy Matrix

• Room Revenue Management Analyze Phase POV

• KPIs Definition & Recommendation

• Dashboard Wireframe

• Final Information Matrix Requirements

• Final Dashboard Wireframe Layout

• Final Presentation and Project Sign -Off

26


Summary – Analyze PhaseAnswerAnalytics followed a structured approach to analyze the room revenue metrics and conceptualize the wireframe and flow that address the needs of corporate, regional and property level views. The team developed the wireframe design by evaluating the perspective of each dashboard user profile and their unique needs for analysis on business deviations and trends.

Key FindingsApproach

1 Analyze and prioritize a Room Revenue KPI’s

Review and test the KPI’s for the degree of complexity.

Divide the Metric's into Core, Enhanced and Advanced - Based on metrics that are existing, interviewee common desire to have, and leveraging knowledge and industry experience for advanced.

2 Indentify how key stakeholders view KPI’s to quicklyassess areas of opportunity

Categorize KPI’s based on areas of functional hospitality needs.

Analyze the categories to create a better grouping to allow the dashboard to be more intuitive

3 Narrow decision-making KPI’s into key Strategic Business Drivers

Construct categories for focusing on areas that cause deviation in revenue, competition performance, financial productivity and guest satisfaction.

4 Leverage highly parameterized views

Lay out the wireframe in a way that is logical and intuitive for users and key stakeholders.

Ensure dimensions are aligned with stakeholder requirements.

Based on the Core, Enhanced , and Advanced metrics the outcome is the Metric Value Map.

This Metric Value Map allows the organization to use a 5 phase approach to build the dashboard based on the complexity vs. Core, Enhanced and Advanced metrics in a logical fashion.

We found the groupings to be aligned with STR, Productivity, Food and Beverage, Forecasting and Revenue Management, and Channel Management .

These groupings worked well in the Metric Value Map in understanding areas of focus.

These groupings needed further refinement to allow the dashboard to become more intuitive.

This approach lead to the Strategic Business Drivers of Revenue -deviation of Room Revenue to Budget, STR Competitive Index -Deviation of RGI to goals/targets, Profitability - GOPPAR deviation to budget and Guest Satisfaction - Overall Sat Scores.

A graphical view of the Strategic Business Drivers, with the ability to view Time, Brands, Geographical and Functional areas of responsibility, and by Business Model.


27

28


Upper Left Quadrant Advanced Metrics, Low Complexity

Upper Right Quadrant Advanced Metrics, High Complexity

Lower Left Quadrant Core Metrics, Low Complexity

Lower Right QuadrantCore metrics, High Complexity

Degree of Complexity

Fcst/Rev.Mgt.•Rubicon/ Price Shopping•Group vs. Tentative Trending

F&B•F&B Rev.•Orc compared to F&B Rev.•Meeting Room Rev.•Banquet & Catering Rev.

Channel•3rd party bookings TPI”s•Web booking Production•GDS Reservations•Channel Distribution •Hotel Direct Bookings

Mkt Segmt •Segmentation Business Mix

STR•RGI•ARI•MPI•ADR•Orc•RevPAR•Day STR

FCST/Rev. Mgt•Rolling Best Flex Div.•3 month rolling Rms & Rev OTB•Forecast deviation•TRevPAR

Enhanced Metrics

Current Data Currently Available by Key Organizational Level

Data currently available but some key organization levels are missing

Data currently not available

Low

High

High

Channel•CRO Reservations

Fcst/Rev. Mgt.•Pick ups & Pace, Groups & Transient

Channel•Regrets & Denials by Channel•Non-Opaque & Opaque

Productivity•ENER•Customer satisfaction

STR•Trending STR

CoreMetrics

Advanced Metrics

Productivity•Room RevTPH•GOPPAR•ProfitPOR•Room RevTPH

Fcst/Rev.Mgt.•Lost PR

F&B•RevPAF•RevPASH

FCST/Rev. Mgt•Total Rooms on the books•Sell out Efficiency/full house %

Metric Value Map

Prioritization

1st Phase2nd Phase3rd Phase4th Phase5th Phase

1st2nd

3rd

4th

5th

Prioritization based on degree of metric complexity and progression.

Dashboard Wireframe - Guiding Principals

During the Analyze phase leading practice design principles were applied to develop a Room Revenue Dashboard Wireframe, which consists of a Site Map and Navigational Prototype.

1. Understand the data…

• What decisions will be made with the data?

2. Guide the user…

• Provide gracefully transitions from summary to detail.

• Provide decision-making opportunities along the way.

3. Leverage highly parameterized views…

• Efficiently navigate to and through detail data.

• Be respectful of a user’s selection.

• Return only the data requested and not more.


29


30

Advancing IHG Revenue Management Effectiveness The discipline of Revenue Management has evolved significantly over the past

3 years. Starting with maximizing demand and progressing to analyzing

business mix and effectively pricing for the optimal balance of RevPAR,

measured in RGI.

Traditional Revenue Management addresses these topics, but does not exploit

the ever increasing speed of economic cycles. When the economy began to

lag in late 2007 it took a considerable time to properly achieve an expectable

forecast accuracy that mirrored what was actually happening to demand.

As the economy is now turning positive, again the ability to quickly adjust to the

rise in demand needs to be effectively exploited. To advance Revenue

Management beyond a narrow room focus other correlating drivers must be

considered. These measures in most cases are foretelling of an organization’s

ability to optimize Revenue Management drivers. These correlative measures

include, Food and Beverage layered with overall Productivity and Profitability

are the next evolution.

IHG Revenue Management has an opportunity to advance its effectiveness by adopting the following:

Tracking a rolling 90 day trend against each appropriate KPI, allowing for faster reaction to economic shifts.

Categorizing Room Revenue KPI’s into 4 Strategic Business Drivers; Revenue, STR Index, Guest Satisfaction, Productivity.

Leveraging Guest Satisfaction scores as a driver of future demand and contributes to Revenue Management optimization.

Defining, forecast and measure productivity for revenue maximization. Forecasting Food & Beverage and Profitability are essential for IHG

to maximize all revenue demand.

Source: STR 2010

Brand Revenue STR Index Guest Satisfaction Productivity

IHG

+Holiday Inn

+Holiday Inn Express

+Crowne Plaza

+InterContinental

+Candlewood Suites

+Staybridge Suites

+Indigo

+Military

+Bass Hotels & Resorts

Room Revenue Performance – Dashboard Wireframe

Actuals Prior Year Actuals

Forecast Budget

Property Type

Table View

Toggle from Graphical to Numeric Values

Defaults to IHG Aggregate Room Revenue

Updated based on Brand

selection above

Select Financial Criteria to be Graphed

Drill into Category to

access Productivity Driver Detail

Actuals have exceed variance to Forecast tolerance

level

Geo Map

Toggle from Brand to Geographic View

Drill into Brands to

access Revenue

Scorecard

Click on column header for metric

definition

Drill into Category to

access Customer Sat Driver Detail

Drill into Category to access STR

Index Driver Detail

Drill into Category to access Net Revenue

Driver Detail

Revenue STR IndexGuest

SatisfactionProductivitySummary

Date Range: Jan, 2010 Nov, 2010

Specify Date Range for

Performance Data

31

Default to Aggregate IHG, select

from Management

Company, Owned or Franchised

Data View

Trending forecast deviation of greater than 5% of actuals

for past 3 mths


IHG $7,125,000 95% 4.4 $13, 229

+Holiday Inn $1,500,000 96% 4.4 $9,785

+Holiday Inn Express $1,200,000 105% 4.3 $12,376

+Crowne Plaza $1,000,000 93% 4.5 $17,909

+InterContinental $1,000,000 113% 4.6 $20,677

+Candlewood Suites $750,000 90% 4.5 $10, 356

+Staybridge $650,000 102% 4.5 $11,154

+Indigo $500,000 115% 4.1 $14, 998

+ Military $475,000 98% 4.4 $12,345

+Bass Hotels & Resorts $50,000 91% 4.1 $16,445


Forecast Budget

Defaults to IHG Aggregate Room

Revenue

Updated based on Brand selection above

Property Type

Graph View

Geo Map




Toggle from Numeric to Graphical Values



Performance Data


access Revenue

Scorecard


Drill into Category to identify the “KPI Owner” for follow up

action

Actuals have exceed

variance to Forecast

tolerance levelTrending forecast

deviation of greater than 5% of actuals

for past 3 mths

Select Financial Criteria to be Graphed 32

Data View


from Management



IHG $7,125,000 95% 4.4 $13, 229

+Holiday Inn $1,500,000 96% 4.4 $9,785

+Holiday Inn Express $1,200,000 105% 4.3 $12,376

+Crowne Plaza $1,000,000 93% 4.5 $17,909

+InterContinental $1,000,000 113% 4.6 $20,677

+Candlewood Suites $750,000 90% 4.5 $10, 356

+Staybridge $650,000 102% 4.5 $11,154

+Indigo $500,000 115% 4.1 $14, 998

+ Military $475,000 98% 4.4 $12,345

+Bass Hotels & Resorts $50,000 91% 4.1 $16,445


Forecast Budget

Property Type

Graph View

Geo Map




Toggle from Numeric to Graphical Values


from Management




Performance Data


access Revenue

Scorecard



action

33

Revenue Variance % STR Index Variance % Guest Satisfaction Variance % Productivity Variance %

Actual $1,500,000 96% 4.4 $9,785

Budget $1,600,000 $100,000 6.2% 100% 4 4.10% 4.9 0.50 11.30% $11,003 1218 12.40%

Forecast $1,450,000 $50,000 3.4% 99% 3 3.12% 4.8 0.40 9.00% $9,876 91 1%

Graph ViewHoliday Inn


Forecast Budget


Revenue Updated based

on Region selection above

Select Financial Criteria to be

Graphed

Drill into Global Region to

access Regional Scorecard

Actuals have exceed variance to Forecast

tolerance level

Property Type

Table View

Toggle from Graphical to Numeric ValuesGeo Map




Default to Aggregate IHG,

select from Management





action

Trending forecast deviation of greater than 5% of actuals

for past 3 mths

34


Forecast Budget





Graphed

Drill into Americas Region to access

Territory Scorecard


tolerance level

Back to Previous

Level View

Property Type

Table View Toggle from Graphical to Numeric Values

Geo Map





from Management




Performance Data


Trending forecast deviation of

greater than 5% of actuals for past 3

mths

35


Forecast Budget





Graphed

Drill into Americas Region to access

Territories


tolerance level

Back to Previous

Level View

Property Type

Table View

Toggle from

Graphical to

Numeric Values

Geo Map




Default to Aggregate IHG,

select from Management





action

Comparison

View Hotel performance by

Region



mths

36

Back to Previous

Level View

Property Type

Table View

Geo Map


Holiday Inn Hotels NW Region

Actual Budget Deviation

9,897,650 10,098,456 2%

Holiday Inn NWA 765,667 888,076 4%

Holiday Inn NWB 998,809 998,809 3%

Holiday Inn NWC 560,989 560,989 8%

Holiday Inn NWD 389,854 389,854 1%

Holiday Inn NWE 897,654 897,654 0%

Holiday Inn NWF 789,065 789,065 3%

Holiday Inn NWG 678,987 678,987 2%

Holiday Inn NWH 576,890 576,890 5%

Holiday Inn NWI 900,087 900,087 0%

Holiday Inn NWJ 576,869 576,869 1%

Holiday Inn SWK 876,700 876,700 2%

Holiday Inn Hotels SW Region


8,856,799 9,823,467 11%

Holiday Inn SWA 889,876 889,876 12%

Holiday Inn SWB 998,809 998,809 14%

Holiday Inn SWC 560,989 560,989 9%

Holiday Inn SWD 389,854 389,854 11%

Holiday Inn SWE 897,654 897,654 16%

Holiday Inn SWF 789,065 789,065 20%

Holiday Inn SWG 678,987 678,987 8%

Holiday Inn SWH 576,890 576,890 5%

Holiday Inn SWI 900,087 900,087 12%

Holiday Inn SWJ 576,869 576,869 15%

Holiday Inn SWK 876,700 876,700 9%

Holiday Inn Hotels NE Region


9,897,098 11,234,567 19%

Holiday Inn NEA 889,876 889,876 8%

Holiday Inn NEB 998,809 998,809 7%

Holiday Inn NEC 560,989 560,989 12%

Holiday Inn NED 389,854 389,854 23%

Holiday Inn NEE 897,654 897,654 23%

Holiday Inn NEF 789,065 789,065 21%

Holiday Inn NEG 678,987 678,987 19%

Holiday Inn NEH 576,890 576,890 17%

Holiday Inn NEI 900,087 900,087 13%

Holiday Inn NEJ 576,869 576,869 25%

Holiday Inn SWK 876,700 876,700 23%

Holiday Inn Hotels SE Region


7,889,999 9,988,661 22%

Holiday Inn SEA 889,876 889,876 24%

Holiday Inn SEB 998,809 998,809 22%

Holiday Inn SEC 560,989 560,989 12%

Holiday Inn SED 389,854 389,854 8%

Holiday Inn SEE 897,654 897,654 7%

Holiday Inn SEF 789,065 789,065 30%

Holiday Inn SEG 678,987 678,987 25%

Holiday Inn SEH 576,890 576,890 27%

Holiday Inn SEI 900,087 900,087 34%

Holiday Inn SWJ 576,869 576,869 10%

Holiday Inn SWK 876,700 876,700 20%


Revenue Performance Scorecard by Region

37




Forecast Budget


Revenue

Updated based on Hotel

selection aboveSelect Financial

Criteria to be Graphed

Drill into property to access Hotel

Scorecard


tolerance level

Back to Previous

Level View

Property TypeDefault to Aggregate

IHG, select from Management Company or Franchised

Table View


Geo Map






action



mths

38


Room Revenue Scorecard – Hotel Room RevenueRevenue STR Index

GuestSatisfaction

ProductivitySummary

Geo Map


Table View


Forecast Deviation

Sell Out Efficiency/Full House %

Rolling Best Flex Div.

3 Months Rolling Rooms & Rev OTB

Total Rooms on the Books

TrevPAR

Lost PR

Rubicon

3rd Party Booking TPI

Web Booking Production

GDS Reservations

Channel Distribution +PCR

Market Segmentation/Business Mix

CRO Bookings

Group Vs. Tentative

Opaque and Non-Opaque

Pace Group & Transient


Forecast Budget





Graphed

Actuals have exceed variance to Forecast tolerance level

Hotel

List of available hotels



mths

39


Specify Date Range for Performance Data


GuestSatisfaction

ProductivitySummary

Geo Map

Table View

Hotel

Business Mix

Business Mix 1st Qt Business Mix 2nd Qt

Business Owner:Revenue Management 40

Holiday Inn - Fort Lauderdale Beach


Click to drill into Business Mix

chart to access supporting data

Click to drill into Business Mix

chart to access supporting data


GuestSatisfaction

ProductivitySummary

Geo Map


Forecast Deviation Hotel


0

2

4

6

8

Oct Nov Dec

Holiday Inn Fort Lauderdale Beach

Actuals

Forecast

Oct Nov Dec

Actual 350,000 420,000 250,000

Forecast 500,000 480,000 240,000

Deviation 150,000 60,000 10,000

Deviation % 30% 13% 4.10%

Trend Deviation 18%

Trend Threshold 6%

Table view of trend data

Business Ownership

Business Owner:Revenue Management 41


Room Revenue Scorecard – STR IndexRevenue STR Index

Guest Satisfaction

ProductivitySummary

Geo View


RGI

ADR

Orc

MPI

ARI

RevPAR

Day STR

Table View

Hotel


Occupancy (%) ADR RevPAR /RGI

My PropComp

Set Index My Prop Comp Set Index My Prop Comp Set Index Goal

Current Month

21.4 30.1 71.1 107.62 115.81 92.9 23.05 34.89 66.1 98.0

3 Months 39.2 46.2 84.7 190.06 144.24 131.8 66.71 74.41 94.3 98.0

Running 12 Months

33.9 41.9 80.9 190.36 155.73 122.2 64.54 65.28 98.9 98.0

Business Owner:Sales

42

53

153

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Monthly IndexesDate Range: Jan, 2010 Nov, 2010

Room Revenue Scorecard – Guest SatisfactionRevenue STR Index

GuestSatisfaction

ProductivitySummary

Geo Map


Guest Satisfaction

OSAT

Drill into Category to identify the “KPI

Owner” for follow up action

Hotel


2010

Brand Organization Oct Nov Dec Trending Goal Variance

Staybridge Suites 4.7 4.7 4.7 4.7 4.8 0.1

Holiday Inn Express 4.6 4.6 4.6 4.6 4.4 0.2

Indigo 4.5 4.6 4.5 4.5 4.5 0

Holiday Inn Hotels 4.5 4.4 4.4 4.4 4.7 0.3

Crowne Plaza Hotels 4.4 4.4 4.4 4.4 4.4 0

Candlewood 4.2 4.2 4.2 4.1 4.1 0

Inter-Continental 4.2 4.2 4.1 4.1 4.2 0.1

Holiday Inn Hotels 4.4 4.3 4.3 4.3 4.3 0

Crowne Plaza Hotels 4.3 4.3 4.3 4.3 4.2 0.1

Candlewood 4.4 4.4 4.4 4.3 4.4 0.1

Inter-Continental 4.4 4.4 4.4 4.4 4.4 0

Business Ownership

Business Owner:Operations 43


Room Revenue Scorecard – Guest SatisfactionRevenue STR Index

GuestSatisfaction

ProductivitySummary

Geo Map


Guest Satisfaction

Drill into Category to identify the “KPI Owner” for follow up action Hotel


2010 Trending Goal Variance

Holiday Inn Hotels Oct Nov Dec

RETURN 4.5 4.4 4.4 4.4 4.7 0.3

BRAND_LOYALTY 4.2 4.2 4.3 4.3 4.2 .1

VALUE 4.2 4.2 4.2 4.2 4.1 .1

QUALITY_PRICE 3.8 3.8 3.9 3.8 3.8 .0

QUALITY_BRAND 4.1 4.0 4.1 4.2 4.1 1

SERVICE 3.8 3.8 3.8 3.8 3.8 .0

PHY_CONDITION 4.1 4.1 4.1 4.2 4.1 .1

LOCATION 4.0 4.0 4.0 4.0 4.0 .0

APPEAR_EXT 4.1 4.1 4.2 4.2 4.1 .1

APPEAR_INT 3.8 3.8 3.8 3.8 3.8 .0

UTD_APPEARANCE 3.9 3.8 3.9 3.8 3.9 .1

Business Ownership



0

5

10

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Holiday Inn - Fort Lauderdale Beach

Actuals

Forecast

Room Revenue Scorecard – ProductivityRevenue STR Index

GuestSatisfaction

ProductivitySummary

Geo MapGOPPAR

Room REVTPH

ENER

ProfitPAR

RevPAF

TrevPAR

RevPASH

Meeting Room Rev.

Occupancy compared to F&B Rev.

F&B Rev.


Forecast Budget

Table View

Hotel

45

Gross Operating profit per Available Room

Conference and Banquet Revenue Per Available Per

Square Ft.

Profit Per Available Room

Enterprise Net Revenue Per Night = Channel, & PCR ADR, Minus PCR assessment, comm. GDS & incentive fees

Room Revenue Divided by Total Available Rooms

Total Revenue Per Available Room

F&B Revenue Per Available Seat & Hour,

Per Outlet


Actuals

Forecast

Room Revenue Scorecard – ProductivityRevenue STR Index

GuestSatisfaction

ProductivitySummary


Geo Map


Hotel


GOPPAR

Oct Nov Dec

Actual 9843 9601 7954

Budget 11990 12889 8234

Deviation 2147 3288 280

Deviation % 17% 25% 3%

Trend Deviation 17%

Trend Threshold 5%

Table view of trend data

Business Ownership


4747

IHG©


• Tools Used: Development sales training, training and traveling with MMD’s, first hand feedback with owners during presentations, working with the brand to build owner presentations & scripting

• Before & After: Brand with out strategic direction - To building a foundation to reposition brand, clean up the estate & start the journey

• Measurement Plan: Achieve 80% compliance

• Program Success: Completed, and on the “Move Up” phase

• Unique Challenges: Owner Participation

• Overcoming Challenge: Bring in Development Sales as part of the presentation

.


Crowne Plaza Refresh

FRESHEN UP CONSULTATION

50

And bring

it to life

with a

detailed

plan

We will

differentiate

to drive

guest

satisfaction

and grow

share

And a

positioning

that will set

us apart

CAPTURING THE OPPORTUNITY

We

identified

a distinct

target

audience

We have

a strong

brand,

but trail

competitors

51

OUR GUEST WANTS

A hotel experience that offers…

51

Traveling

For

Success

5252

HOW DO WE FRESHEN UP?

52

QUALITY

ONE STEP AHEAD

SERVICE TRAINING

GREEN ENGAGE

SLEEP ADVANTAGE

MEETINGS TOOLS

BRAND IDENTITY

Cure all open deficiencies

identified in your management

action plan

Implement i-Clean

Set up Green Engage*

Enroll and use MSTS

Complete Meetings Excellence

eLearning Training*

Implement high turnover items

Implement low turnover items

Implement refreshed bedding

program

Identify Service Training

Champion

Attend Champion’s Workshop

Attend Regional Champion’s

Workshop

Complete Leaders’ Workshop

53

WHAT DRIVES GUEST SATISFACTION?

54

THE ‘BASICS’ ARE CRITICAL

They drive 70-80% of guest satisfaction

55

Owner Surveys

56

• Few days post Freshen Up consultation: Area Director sends post meeting recap letter to owner,

management company and GM to help set the expected path to cure and give helpful instructions on

using the MAP process.

• 30 Days Post Freshen Up: Letter sent to owner, management company and GM as to the progress on

their MAP, highlighting percentage of completion and any mislabeled cures customized by hotel, by

each Area Director

• 90 - 120 Days Post Freshen Up – Area Director revisits the property and does a walk through to check

on the follow up and quality of the data provided on the MAP, followed by a written report back to owner,

management company and GM

• 90 - 120 Days Post Freshen Up – If a property fails the QEM for Brand Standards, Cleanliness or Life

Safety a follow up QEM is performed and the above starts over until hotel passes, this will include a re-

inspection fee of $2,500

Crowne Plaza Refresh Follow Up Process

57

• Win: At the half way mark, only one hotel has chosen to not Refresh, due to capital concerns

• Win: Due to the robust focus on the QEM and Brand standards during the Freshen Up visits, 42% of all

Crowne Plazas have failed their QEM, demonstrating how seriously we are taking this process with a

heavy emphasis on each hotel being more consistent within the Brand

• Win: The QEM’s have identified 5570 “deficiencies”, of these hotels have already cured almost 50% or

2713 “deficiencies”. A 90 Day follow up process ensures that the resolutions meet IHG and Brand

standards

• Win: On average each hotel has committed $432,651 in capital to become in line with the Freshen Up

process a substantial commitment

The Crowne Plaza Refresh Wins

58

IHG©


• Steps To Definition & Mission: Improve an almost 5 year slide in OAST

• Methodology & Tools Used:

– Quality Consultant interviews and traveling on assignment in each region

– New profiling of quality consultant candidates – Work with HR and profiling tools and exercises

– Review of staffing deployment analysis

– Analyzing outsourcing with LRA

– Staffing waterfall approach with Peer Tepperwien

– Creating and training Inspectors to be Consultants

– Moving toward getting owners to participate in Quality Consultations

.


Re-Envisioning Quality

IHG©

• Before & After: Before a dropping OSAT Score – To first year of improved OAST in almost 5 years

• Unique Challenges: Moving expectations of entire Quality department in all phases of work approach

• Overcoming Challenge: Training in consulting and upgrading job perception internally and externally

.



IHG©

Background and Context

• Currently 40% of IHG hotels fail our quality inspection, 50% fail the first re-inspection and 57% fail the second re-inspection.

• In 2003 when IHG relied on self-inspections, quality scores dropped significantly, ultimately leading to re-establishment of the quality team within 24 months.

• IHG has not increased its United States quality team since 2007, although system size grew by 548 hotels from 2007 to 2012.

• Competing brands like Starwood, Hilton and Marriott have a more timely evaluation process and stricter penalties for failing hotels. Those chains also have higher guest satisfaction scores

• A regression analysis identified that 1 point in OSAT increase would result in an increase in RGI, which in turn would lead to $4.6M in additional fees for IHG.



IHG©

Options Evaluated

Created a model that simulates the number of required quality visits, the staffing available and the resulting number of actual visits filled. Based on this, we built a departmental P&L. We used this model to identify the following options:

Increasing Quality Team Staffing Levels

Currently, the US team has 5,600 working days available but would need 7,800 working days to cover all required visits.

1,100 evaluations are being pushed out, resulting in base visits happening only every 12+ months instead of the scheduled 9 months and follow up visits happening every 120+ days instead of 90 days as scheduled.

In order to get full coverage, we would have to hire 14 additional Quality Consultants.

Although there are training costs for newly hired consultants, an increase of up to 12 Quality Consultants will more than carry itself after 9 months.

Out-sourcing Quality Base Visits

We looked at out-sourcing our base visits to a leading company which provides services to IHG Europe, Starwood globally, and Marriott globally.

Costs of outsourcing base visits would exceed the cost of internal visits by about $300 per visit, resulting in a total incremental cost of $900k.

Outsourcing only certain Brands such as InterContinental Hotels, Crowne Plaza Hotels and Resorts and/ or Hotel Indigo would alsoincrease the expense to IHG, but less than outsourcing the base visits of the entire estate.



IHG©

Recommendation

Recommendation is to hire 12 IHG employees with no negative affects to IHG’s P&L within 12 months, allow them to assist us in increasing the frequency in which we evaluate and action plan with hotels in unsatisfactory, at risk and reputable categories across all Brands.

We believe by doing this we can have an immediate positive impact on OSAT and start to establish a more focused IHG culture on quality service and product throughout our owner community. Thus reducing hotels producing guest defectors and increasing the attraction of good owners to build hotels with us as their investment is safe within our Brand families.

By raising OSAT, we expect to increase IHG’s Brand loyalty as well as our fee streams by having our hotels increase market share.



IHG©

Consultancy Training

Welcome to the IHG Americas Conference

IHG©

• Program Initiation: Tim Genovese & Shannon Davis

• Steps To Definition & Mission, Methodology: Create an industry leading program for Architects & Designer to become approved in each IHG brand

• Tools Used: Interviewing other brands to find out their programs, work with each brand to develop a presentation, work with D&C to build internal presentations by brand, interviewing owners and their business partners based on a list from Owner Relations

• Before & After: From “no program” to “best in class” program

• Measurement Plan: Launch of program leading to certified Designers and Architects

• Program Success: Launched with 150 approved Designers and Architects

• Unique Challenges: Internal representative was not organized

• Overcoming Challenge: Took on duties to keep on track and advised director, leading to a change in staff

. Date if required Private and confidential 67

Design & Construction

Immersion

Introduction – Opportunities &

Benefits• Owners & IHG losing time and money via

delays

• Owners thinking IHG is costing them time & money often it is their own Architects & Designers

• Architecture, design firms need to understand Brand identity, Brand standards and learn IHG process

• Promote Brand Loyalty by educating design providers on the difference in IHG Brands and the Brand Vision

• Increase ROI for owners by building better hotels

• Defining the submittal process to eliminate

35% of all project submittals

• Increasing our owners understanding and

perception of IHG

• Better expectations for Architects/Designers

to fulfill their obligation to get Plans approved

• Brand Immersion design meetings, are

standard practice in the industry and provide

a number of benefits that align with IHG’s

goals

Competitor Landscape

Introduction – Opportunities & Benefits

• Guide owners toward a successful construction process by providing a list of vetted design professionals

• The service providers list for owners will meet the minimum criteriarequired of professional qualifications and uphold IHG standards

• The list is updated frequently to remain fresh (both additions and removals)

Qualifications Needed to Attend?

• Degree in Architecture or Interior Design - a minimum of 2 years of hotel design experience

• Non-degreed interior design professionals - a minimum of 5 consecutive years with established interior

design firm

• Must be able to provide full architectural or interior design services (in-house or contracted)

Must meet IHG and Brand requirements by;

• Following Brand Standards

• Correctly utilizing current Brand Hallmarks

• Following design direction of the Brand in use of design concepts,

materials, finishes and furniture

• Complying with submittal format requirements

• Completing required drawings, specifications and presentation

• materials within designated timelines

• Appropriately utilizing Brand Design Schemes (if applicable)

D&C Immersion Specifics• Legal is engaged - Brand Standard is in consideration for the future - Program Specifications are written

• Tim Genovese is socializing with Owners

• Onetime application fee of $100 - covers only operational costs

• Immersion classes offered once a month

• Targeting 30 attendees at a time

• D&C will maintain and post the list of Architect & Designers who have been vetted through our process

• Attendees leave with binders of brand specific presentations and D&C process information

Members of the IHG Approved Designer and Architect List may be removed from the list by Design and Construction

for the following reasons:

Non-compliance with Brand Standards

Failure to follow D & C submittal procedures

Failure to follow IHG Design Guidelines resulting in more than one resubmittal

Substantially incomplete documentation in drawing and specification formats

Unethical or unprofessional behavior

Have not provided services on an IHG project within past three years

Sample Agenda - Preferred Class Size 30DAY ONE

7:30 - 8:15 Continental Breakfast

8:15 - 8:30 Welcome and establishment of shared purpose

8:30 – 8:50 IHG Brand Family presentation

8:50-9:20 Brand Standards compliance

9:20-9:50 Brand Design and Website

9:50:-10:10 Break

10:10-12:00 Breakouts Architects – Discuss submittal procedures, schedules, project management, guiding owners with Brand identity, general project issues and questions

Interior Designers – Working with Brand Design schemes vs custom, submittal procedures, working with vendors, guiding owners with Brand Identify, general project issues and questions

Lunch

Brand Sessions - Attendees must attend any Brand sessions for projects they are currently approved for to complete the immersion process

1:30 - 3:30 Holiday Inn, Holiday Inn & Suites, Holiday Inn Resort (ad hoc)

3:45 – 5:45 New Holiday Inn Express prototype - Holiday Inn Express & Suites

3:30 - 3:45 Break - All

1:30 - 3:30 Hotel Indigo

3:45 – 5:45 Crowne Plaza Hotels & Resorts

1:30 – 3:30 Candlewood Suites

3:45 - 5:45 Staybridge Suites

DAY TWO - Optional

9:00-11:00 Optional - Meetings with Plan Review Consultants to discuss current projects

Attendee must contact their respective consultant to schedule a meeting.

All Day Optional -Map provided of recommended IHG hotels for self-guided tour

In the Atlanta area (Model room visits will be subject to availability.)

Resources & Feedback

• Brand Overviews Per Brand –1hour presentations

– Intros

– Current Brand perception

– Overview

– Key components

– Brand differentiation

• Brand Presenter Training/Dry Run

• Model Rooms For Major Brands

Key Dates

• Tim Genovese socializing with the Owners Association Std’s Committee Now- Ongoing

• Dry Run Program Day (Internal staff) - May 7th

• “Select Attendees” Pilot/Beta Test – May 20th

• Monthly Presentations Start –June 17th

• D&C Immersion is an industry standard – We are catching up & improving

• Owners & IHG win with shorter time to complete projects

• Shorter projects saves money for Owners & IHG

• Your teams participation will make for a stronger program

• Presentations start monthly on June 17th

• Potential to “Mandate Standard” Once program is tested for viability- need brand backing

• Potential use of a “Deal List” for approved Architects/Designers to let them bid for business

Summary

Documents

Scott Bunce 4+ Years Of Innovation