Holiday Inn - History

History

Kemmons Wilson initially came up with the idea after a family road trip to Washington, D.C., during which he was disappointed by the lack of quality and consistency provided by the roadside motels of the time. The name Holiday Inn was given to the original hotel by his architect Eddie Bluestein as a joke, in reference to the musical film Holiday Inn (1942), starring Bing Crosby and Fred Astaire. The first Holiday Inn opened at 4941 Summer Avenue in Memphis, the main highway to Nashville, in August 1952 as Holiday Inn Hotel Courts. The motel was demolished in the early 1990s, but there is a plaque commemorating the site.

Wilson partnered with Wallace E. Johnson (1901-1988) to build additional motels on the roads entering Memphis. Holiday Inn's corporate headquarters was in a converted plumbing shed owned by Johnson in 1953, when the company built its first four hotels, one covering each approach to Memphis. On the occasion of Johnson's death, Wilson was quoted as saying, "The greatest man I ever knew died today. He was the greatest partner a man could ever have." Together they started what Wilson would shepherd into Holiday Corp., one of the world's largest hotel groups.

In 1957, Wilson franchised the chain as Holiday Inn of America and it grew dramatically, following Wilson's original tenet that the properties should be standardized, clean, predictable, family-friendly and readily accessible to road travellers. By 1958, there were 50 locations across the country, 100 by 1959, 500 by 1964, and the 1,000th Holiday Inn opened in San Antonio, Texas, in 1968. The chain then became known as "The Nation's Innkeeper". The chain dominated the motel market, leveraged its innovative Holidex reservation system, put considerable financial pressure on traditional motels and hotels, and set the standard for its competitors, like Ramada Inns, Quality Inn, Howard Johnson's, and Best Western. By June 1972, when Wilson was featured on the cover of Time magazine, there were over 1,400 Holiday Inn hotels worldwide. The motto then changed to "The World's Innkeeper". Innovations like the company's Holidome indoor pools turned many hotels into roadside resorts.

In the 1960s, Holiday Inn began franchising and opening campgrounds under the Holiday Inn Travel-L-Park brand. These recreational campgrounds were listed in the Holiday Inn directories.

The company later branched into other enterprises, including Medi-Center nursing homes, Continental Trailways, Delta Queen, and Show-Biz, Inc., a television production company that specialized in syndicated country music shows. Wilson also developed the Orange Lake Resort and Country Club near Orlando and a chain called Wilson World Hotels. The acquisition of Trailways in 1968 lasted until 1979 when Holiday sold Trailways to private investor Henry Lea Hillman Sr., of Pittsburgh, Pennsylvania; in the years during which Trailways was a subsidiary of Holiday Inn, television commercials for Holiday Inn frequently showed a Trailways bus stopping at a Holiday Inn hotel. Wilson retired from Holiday Inn in 1979. As of 2012 the family of founder Kemmons Wilson still operates hotels as part of the Kemmons Wilson Companies of Memphis.

Although still a healthy company, changing business conditions and demographics saw Holiday Inn lose its market dominance in the 1980s. Holiday Inns, Inc. was renamed "Holiday Corporation" in 1985 to reflect the growth of the company’s brands, including Harrah's Entertainment, Embassy Suites Hotels, Crowne Plaza, Homewood Suites by Hilton and Hampton Inn. In 1988, Holiday Corporation was purchased by UK-based Bass PLC (the owners of the Bass beer brand), followed by the remaining domestic Holiday Inn hotels in 1990, when founder Wilson sold his interest, after which the hotel group was known as Holiday Inn Worldwide. The remainder of Holiday Corporation (including the Embassy Suites Hotels, Homewood Suites by Hilton and Hampton Inn brands) was spun off to shareholders as Promus Companies Incorporated. In 1990, Bass launched Holiday Inn Express, a complementary brand in the limited service segment.

In 1994, Bass launched Crowne Plaza, a move into the upscale hotel market. In 1997 Bass created and launched a new hotel brand, Staybridge Suites by Holiday Inn, entering the North American upscale extended stay market. In March 1998 Bass acquired the InterContinental brand, expanding into the luxury hotel market. In 2000 Bass sold its brewing assets (and the rights to the Bass name) and changed its name to Six Continents PLC. InterContinental Hotels Group (IHG) was created in 2003 after Six Continents split into two daughter companies: Mitchells & Butlers PLC to handle restaurant assets, and IHG to focus on soft drinks and hotels, including the Holiday Inn brand.

The brand name Holiday Inn is now owned by IHG, which in turn licenses the name to franchisees and third parties who operate hotels under management agreements.

In January 2002, The Wall Street Journal reported that the company, led by Ravi Saligram, was producing a new 130-room "Next Generation" prototype hotel to rebuild the brand. It would include a bistro-like restaurant and an indoor pool. The first of these prototype hotels, the Holiday Inn Gwinnett Center, was built in Duluth, Georgia, in 2003.

On October 24, 2007, IHG announced a worldwide relaunch of the Holiday Inn brand, which spelled trouble for the remaining HI motels. The relaunch is "focused on delivering consistently best in class service and physical quality levels, including a redesigned welcome experience signature bedding and bathroom products..." The first relaunched Holiday Inn opened in the USA in the spring of 2008. Currently there are more than 2,500 relaunched Holiday Inn brand hotels around the world, and the Holiday Inn global brand relaunch process was completed by the end of 2010. By then, the majority of the HI motels were removed from the chain, with a few exceptions (In the 1980s and 1990s HI hotels were built alongside the motel properties in order to provide more amenities and newer rooms). When the relaunch occurred, these motels were either demolished or closed off, even if a full-service hotel was already on site. To this day, only a few Holiday Inn motels still fly under the flag.

In September 2008, IHG announced the creation of a new timeshare brand, Holiday Inn Club Vacations, a strategic alliance with The Family of Orange Lake Resorts. The Holiday Inn at Chessington World of Adventures is safari-themed, with a Zafari Bar and Grill.