• Wall Street Journal, Thursday, October 28, 2010 10:50 AM

We swore off re-reporting on Holiday Inn's $1 billion makeover of its 3,400 hotels worldwide after it launched its $100-million "Stay You" campaign in spring. But Kris Hudson reports that it has a new way to re-grab our attention. It's redesigning and expanding its hotel bars to make them livelier "social hubs."

The bars will be the center of several Holiday Inn services, including the restaurant, game room and business center. The chain is reacting to a study of 10,000 guests in six major cities that found that frequent customers -- mid-level road warrior types -- want to be around other people rather than holed up in their rooms.

"These are more extroverted, charismatic people who like people," says Kevin Kowalski, svp of global brand management for Holiday Inn's U.K.-based parent, InterContinental Hotels. "They're not going to hang out in their rooms and watch TV."

In fact, if all goes according to the marketing plan, these "social animals" will eat more food at the bar instead, improving margins in a number of ways that mostly have to do with reducing labor costs -- leaving, one presumes, the displaced wait staff hanging out at home watching TV.

Read the whole story at Wall Street Journal »