Holiday Inn Select to replace Hilton

Franchise switch at hotel downtown set for spring, ends 30-year affiliation

Tuesday, November 16, 2004

By JOHN PECK

Times Staff Writer jpeck@htimes.com

Mark another major change for Huntsville's downtown hotel scene.

The Hilton Huntsville is ending its affiliation with Hilton Hotels Corp. and soon will become a Holiday Inn Select.

News of the franchise switch comes as officials planned a groundbreaking today for a 101-room Hilton Garden Inn near Landry's seafood restaurant along Interstate 565. Hotel Group Inc. of Auburn is developing the Hilton Garden Inn, scheduled for completion next fall, said company President Tom Hunt.

The Holiday Inn switch will take effect in April, said Bob Ray of Southern States Management in Atlanta. Southern States will continue to own the 288-room hotel downtown. Management and room prices should remain the same under the Holiday Inn Select banner, he said.

The name change will end an era of sorts for Huntsville's downtown Hilton. The hotel has carried that banner since opening in April 1975. The switch also ends speculation about the hotel's future.

When Embassy Suites announced plans last year for a 300-room hotel beside the Von Braun Center, some questioned if the aging Hilton could weather the competition.

Ray expressed confidence the Holiday Inn Select will thrive even with Embassy Suites opening in about a year. Southern States has spent about $2 million on renovations in the last two years, including new carpet and bedding, bathroom remodeling, roofing and boiler repairs, and meeting space renovations, he said.

Ray predicts the older hotel will see a decline in occupancy until the novelty of the Embassy Suites wears off.

"We believe we can compete very nicely," he said. Room rates at the Holiday Inn Select will be in the $80 to $90 range, compared with $119 to $130 at the Embassy Suites. "I think there's room for both of us."

Holiday Inn Select is part of the 3,500-hotel Intercontinental Hotels chain, which includes Crowne Plaza, Staybridge Suites, Holiday Inn, Holiday Inn Express, Candlewood Suites and Hotel Indigo.

Embassy Suites is being developed by Missouri hotel developer John Q. Hammons, whose portfolio boasts more than 150 hotels under banners that include Marriott, Hampton Inn and Holiday Inn.

The Hilton Garden Inn off I-565 will be the Auburn group's eighth hotel overall; it also has Hilton Garden Inns in Montgomery and Auburn. The hotel will be built just east of Landry's and visible from the interstate.

Hunt said the location provides easy access to the U.S. Space & Rocket Center, the Huntsville Botanical Garden, Cummings Research Park and Redstone Arsenal. He said Huntsville's hotel market is just beginning to rebound after a lull of about 15 to 20 years.

"We believe the Hilton Garden Inn is a brand'' in demand, especially by the corporate business traveler, Hunt said. The hotel will welcome serving as "overflow'' space for the Embassy Suites and nearby Marriott, as well as relying on them for backup, he said. The Hilton Garden Inn will feature conference rooms and other amenities for group functions.

The Auburn group is also about to launch construction on a 104-room Homewood Suites. That extended-stay hotel will be built in the new Village of Providence development in west Huntsville. Opening is expected in early 2006, about the same time as the Embassy Suites is slated to open downtown.

Judy Ryals, executive director of the Huntsville-Madison County Convention & Visitors Bureau, said Huntsville can use all the new hotel rooms to add to its 5,200-room inventory.

Switching the Hilton Huntsville to a Holiday Inn Select will expand the city's marketing efforts for conventions because two competing hotel chains will be trying to attract business, she said.




Holiday Inn Select to replace Hilton Franchise switch at hotel downtown set for spring, ends 30-year affiliation Tuesday, November 16, 2004 By JOHN PECK Times Staff Writer jpeck@htimes.com Mark another major change for Huntsville's downtown hotel scene. The Hilton Huntsville is ending its affiliation with Hilton Hotels Corp. and soon will become a Holiday Inn Select. News of the franchise switch comes as officials planned a groundbreaking today for a 101-room Hilton Garden Inn near Landry's seafood restaurant along Interstate 565. Hotel Group Inc. of Auburn is developing the Hilton Garden Inn, scheduled for completion next fall, said company President Tom Hunt. The Holiday Inn switch will take effect in April, said Bob Ray of Southern States Management in Atlanta. Southern States will continue to own the 288-room hotel downtown. Management and room prices should remain the same under the Holiday Inn Select banner, he said. The name change will end an era of sorts for Huntsville's downtown Hilton. The hotel has carried that banner since opening in April 1975. The switch also ends speculation about the hotel's future. When Embassy Suites announced plans last year for a 300-room hotel beside the Von Braun Center, some questioned if the aging Hilton could weather the competition. Ray expressed confidence the Holiday Inn Select will thrive even with Embassy Suites opening in about a year. Southern States has spent about $2 million on renovations in the last two years, including new carpet and bedding, bathroom remodeling, roofing and boiler repairs, and meeting space renovations, he said. Ray predicts the older hotel will see a decline in occupancy until the novelty of the Embassy Suites wears off. "We believe we can compete very nicely," he said. Room rates at the Holiday Inn Select will be in the $80 to $90 range, compared with $119 to $130 at the Embassy Suites. "I think there's room for both of us." Holiday Inn Select is part of the 3,500-hotel Intercontinental Hotels chain, which includes Crowne Plaza, Staybridge Suites, Holiday Inn, Holiday Inn Express, Candlewood Suites and Hotel Indigo. Embassy Suites is being developed by Missouri hotel developer John Q. Hammons, whose portfolio boasts more than 150 hotels under banners that include Marriott, Hampton Inn and Holiday Inn. The Hilton Garden Inn off I-565 will be the Auburn group's eighth hotel overall; it also has Hilton Garden Inns in Montgomery and Auburn. The hotel will be built just east of Landry's and visible from the interstate. Hunt said the location provides easy access to the U.S. Space & Rocket Center, the Huntsville Botanical Garden, Cummings Research Park and Redstone Arsenal. He said Huntsville's hotel market is just beginning to rebound after a lull of about 15 to 20 years. "We believe the Hilton Garden Inn is a brand'' in demand, especially by the corporate business traveler, Hunt said. The hotel will welcome serving as "overflow'' space for the Embassy Suites and nearby Marriott, as well as relying on them for backup, he said. The Hilton Garden Inn will feature conference rooms and other amenities for group functions. The Auburn group is also about to launch construction on a 104-room Homewood Suites. That extended-stay hotel will be built in the new Village of Providence development in west Huntsville. Opening is expected in early 2006, about the same time as the Embassy Suites is slated to open downtown. Judy Ryals, executive director of the Huntsville-Madison County Convention & Visitors Bureau, said Huntsville can use all the new hotel rooms to add to its 5,200-room inventory. Switching the Hilton Huntsville to a Holiday Inn Select will expand the city's marketing efforts for conventions because two competing hotel chains will be trying to attract business, she said. Copyright 2004 al.com. All Rights Reserved.