InterContinental Hotels Group (IHG) - Get Report announced that it is launching a new hospitality brand aimed at consumers in between the budget and premium markets as part of its plan to increase revenue per available room, a key hospitality industry health metric.
The new brand, dubbed Avid Hotels, will first launch in the U.S. but could be expanded to other territories if it proves to be successful.
The company said that more than 150 hotel owners had expressed interest in the brand, which is expected to have its first hotel open by 2019.
IHG shares were up 0.76% in afternoon trading Monday.
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