IHG Remains its Growth Momentum in Greater China with 24 New Signings
IHG expands its high-quality hotel solutions in the region with exciting new locations and franchise projects.
Beijing - IHG Hotels & Resorts held its first owner roadshow of the year in Beijing. It marked significant progress by signing 24 hotel projects across its essentials and premium hotel brands, including Holiday Inn Express®, Holiday Inn®, and EVEN Hotels®. These new hotels will energize the group's presence in multiple cities and tourist destinations such as Shanghai, Shenzhen, Nanjing, Kunming, Datong, Rizhao, and Ningde. This achievement signifies IHG's inaugural ventures into many cities and underscores its ongoing expansion in key markets. The move also heralds a new development phase for IHG in Greater China, demonstrating the company's dedication to deepening partnerships with owners, delivering superior business value, and driving long-term growth.
During the event, IHG also shed light on new investment trends in the hotel industry and provided forecasts for developing upper midscale hotel brands in the current operational climate and sharing Insights into the growth and direction of Holiday Inn Express, Holiday Inn, and EVEN Hotels. The same day saw the launch of IHG's Greater China Expo, aiming to foster commercial communications and support the high-quality development of the business travel market.
Commented on the government's emphasis on tourism to spur economic recovery, this will undeniably act as a powerful stimulus for hotel investment and development, fueling more intense competition within the upper midscale hotel segment. Investors increasingly focus on this segment's cost-effectiveness, adaptability, and appeal to younger consumers. Expanding upper midscale brands with IHG meets the market's demand for quality, highlighting the group’s strong competitive standing in this sector. We are committed to continuing this momentum through differentiation and innovation, enhancing industry integration, and delivering lasting value to our guests, owners, and stakeholders. Kent Sun, Chief Development Officer of IHG Greater China
The global travel industry's resurgence has bolstered confidence and demand, fostering new opportunities for the hotel sector. As consumer behaviors evolve, upper-midscale hotels are witnessing substantial growth. IHG, harnessing its diverse brand portfolio, customizes hotel solutions for the Greater China market, ensuring ongoing revitalization.
Holiday Inn Express
Of the 24 new signings, 19 are for Holiday Inn Express hotels. A brand born in the 90s, Holiday Inn Express has pioneered a new era in the global upper-midscale sector. Its unique blend of international standards and localized customization serves as a powerful driver for IHG's expansion in Greater China. Today, the brand boasts over 500 opening and pipeline hotels across the country.
Holiday Inn Express has ventured into new markets recently, introducing the first IHG hotel to several regions of Greater China. The brand is deeply invested in understanding the accommodation needs and investment challenges, while continuously refining its offerings based on guest and owner feedback. The late 2022 launch of Holiday Inn Express 3.0 in Greater China introduced refreshed branding, design, and guest experiences, enhancing the quality of stay. Furthermore, Holiday Inn Express has introduced the five pillars of strategic excellence in Greater China, including "Trusted Cooperation, Investment Satisfaction, Brand Confidence, Product Reassurance, and Operational Ease." These core advantages enhance the brand's standing across diverse fronts, furnishing owners and investors with comprehensive support and refined professional services at every juncture. This ensures the brand's sustained value and competitive edge in the market.
Holiday Inn and EVEN Hotels
The event also saw the signing of multiple Holiday Inn and EVEN Hotels projects, each brand bringing its unique features to the table and providing investors with various investment options. Since its introduction to the Greater China market in 1975, Holiday Inn has been a popular choice among travelers for its inclusivity, flexibility, and innovative approach. The brand caters to various consumer needs, from family travel and leisure to apartments, meetings, and exhibitions, offering owners wider market channels and revenue opportunities. IHG also plans to introduce new room designs and cost structures for Holiday Inn, further enhancing the brand's appeal to investors.
EVEN Hotels, as IHG's premium lifestyle brand, has also broken new ground in hotel investment with its dynamic approach and focus on promoting a healthy lifestyle. Embodying the brand philosophy of "unpack your best self", EVEN Hotels encourages guests to strike a balance between business travel and wellness. Additionally, the brand provides unique, multifunctional spaces that enhance efficiency and cater to diverse consumer needs. This revolutionary approach to hotel operations not only boosts revenue but also enhances guest satisfaction and overall experience.
Franchise Model
Each project signed at this owner roadshow is based on the franchise model, demonstrating IHG's commitment to partnership and collaborative success by implementing this model in Greater China. This approach ensures balanced development and meets diverse needs such as brand representation, group support, and owner participation. IHG has designed a more flexible "franchise+" model for the Greater China region, addressing the specific requirements of local developers and investors. Through this model, the group provides extensive support, including appointing a General Manager, to ensure the full implementation of brand standards, effective use of support tools, and improvements in operational efficiency.
Over the past seven years, IHG's implementation of the franchise model in the Greater China region has led to remarkable achievements, significantly propelling the group's growth in the market. By the end of December 31, 2023, nearly 40% of IHG's hotels operating across the region were running under the franchise model, with more than half of the hotels in the pipeline also adopting this model.
Presently, IHG proudly features 12 brands within the Greater China market, boasting over 1,200 openings or in the pipeline. Moving forward, IHG is committed to harnessing its extensive brand portfolio to craft memorable stays for guests and further high-quality development alongside its partners in Greater China's hotel industry.
