Inter-Continental Rolls Out Business-Class Rooms

<I>New York</I> - Inter-Continental Hotels & Resorts, one of the last business-class room holdouts, is set to unveil its version at all 11 North American hotels by early April, followed by a rollout to its 16 Latin American properties.

The 190-property chain may eventually unleash the concept across its 70 countries, new Americas division president Fred Peelen said in an exclusive interview.

Targeting five to 10 percent of each hotel, Inter-Continental Business Class will offer one of the industry's most equipment-laden versions, rivaling Delta Hotels, Hyatt and Westin.

So far, Radisson leads the business-class rollout race with 225 hotels in 29 countries, followed by Marriott with 150 properties, Hyatt with 78 North American hotels and Westin with 38 hotels, 33 in North America.

"We let the front-runners make all the mistakes," Peelen said.

Sporting the tag line, "an office without the politics," Inter-Continental business class will feature a work desk with built-in outlet strip, Hewlett-Packard scanner/printer/fax, ergonomic chair, a lamp that switches from normal to reading mode, two-line phone with speaker and modem, office supplies and a cabinet stocked with Starbucks coffee and tea-making facilities.

Each hotel will set its own premium and probably will offer two-tiered negotiated rates, Peelen said. Because the top CEOs seldom work on computers and are therefore the least interested in business rooms, Peelen said, pricier hotels might carry the least inventory of these rooms--and the lowest premiums.

Business Class will claim each hotel's largest rooms, usually scattered over several floors. "For the most part, we want to keep the club floor concept separate from business class," Peelen said.

From polling its clientele over 15 months of research, the chain--which counts 85 percent of its guests as business travelers--gleaned four top requests: first, "as much work space as possible," along with a scanner/fax/printer. Better lighting rated second, followed by a high-tech telephone system and a comfortable chair.

Because most guests travel with laptops, devising larger in-room safes will become the industry's next hurdle, Peelen said.

Meanwhile, the chain has launched a mission to reach 200 hotels by the year 2000, growing across the North American map. As the hotel company of Pan American Airways, which coveted international rather than domestic routes, Inter-Continental hotels first debuted overseas in the 1940s. Once Pan Am gained domestic routes in 1979 by merging with National, the airline brought Inter-Continental to its U.S. hubs.

Owned by Japan's Saison group since 1988, the chain now plans to boost its nine-property North American portfolio--Chicago, Los Angeles, Miami, Montreal, New Orleans, New York, San Francisco, Toronto and Washington--with an "active" quest for hotels in Boston, Dallas, Philadelphia, San Diego and Vancouver, Peelen said. At least two new North American Inter-Continentals will premiere by the end of the year, he said.

Currently the largest international hotel chain in South America with 16 hotels, Inter-Continental plans to open hotels in every South and Central American capital. Setting off the growth spurt with three new hotels within the past year--in Sao Paulo, Buenos Aires and Cartagena, Columbia--the chain will celebrate a Panama City grand opening on Feb. 25 and is checking into sites in Lima and Santiago.

Inter-Continental also plans to become Mexico's largest international chain by boosting its seven-property group, including three "exclusive all-inclusive" resorts--Ixtapa, Los Cabos and Puerto Vallarta--to 10 by the end of the year.

Worldwide, 36 hotels added the Inter-Continental flag last year.

Peelen, a 33-year Inter-Continental veteran, stepped up to the president-Americas post last month. Most recently executive vice president-North America, the Netherlands native honed his expertise at properties in Puerto Rico, Pakistan, Bangladesh, Paris, Kenya, Ivory Coast, Germany and the United States.