IHG Accelerates Expansion in Greater China, Announces 24 New Hotel Projects

Thursday, March 28, 2024

IHG Hotels & Resorts launched its initial owner roadshow of the year in Beijing, celebrating a noteworthy advancement with the agreement of 24 new hotel projects spanning its essential and premium brands such as Holiday Inn Express®, Holiday Inn®, and EVEN Hotels®. This move signifies an expansion across various cities and tourist hotspots including Shanghai, Shenzhen, Nanjing, Kunming, Datong, Rizhao, and Ningde, thereby bolstering IHG’s footprint. The venture into numerous new cities highlights IHG’s ambitious growth strategy in crucial markets and signals a fresh developmental phase in Greater China, reflecting the company’s commitment to enhancing partnerships, providing exceptional business value, and promoting sustainable growth.

The roadshow was also a platform for IHG to highlight emerging investment trends within the hospitality sector, offering insights into the growth trajectories of upper midscale hotel brands under the current business conditions, and discussing the expansion prospects of Holiday Inn Express, Holiday Inn, and EVEN Hotels. Additionally, the same day marked the commencement of IHG’s Greater China Expo, designed to enhance business communication and support the upscale development of the business travel segment.

Kent Sun, Chief Development Officer of IHG Greater China says: “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.”

With the global travel sector’s revival injecting optimism and sparking demand, there are newfound opportunities within the hotel industry. The trend towards upper-midscale hotels is gaining momentum, with IHG leveraging its diverse brand array to tailor offerings to the Greater China market, aiming at rejuvenation and growth.

Holiday Inn Express

Out of the new signings, 19 pertain to Holiday Inn Express hotels. Established in the 90s, the brand has been instrumental in redefining the upper-midscale segment globally, blending international standards with local flavors to spearhead IHG’s expansion efforts in Greater China. Presently, the brand celebrates over 500 hotels either operational or in development throughout the region.

Recently, Holiday Inn Express has ventured into previously untapped markets within Greater China, marking the first IHG presence in several areas. The brand is committed to understanding local accommodation demands and investment landscapes, continually improving its offerings based on feedback. The introduction of Holiday Inn Express 3.0 in late 2022 refreshed the brand’s identity, design, and customer experience in Greater China, elevating the stay quality. Additionally, the brand’s strategic pillars in Greater China focus on fostering trust, investment appeal, brand reliability, product assurance, and operational simplicity, thereby solidifying its market position and offering stakeholders robust support and professional services.

Holiday Inn and EVEN Hotels

The roadshow also celebrated agreements for several Holiday Inn and EVEN Hotels, with each brand presenting distinctive investment opportunities. Since its debut in Greater China in 1975, Holiday Inn has appealed to a broad audience with its versatile and innovative offerings. The brand addresses a variety of needs, enhancing market access and revenue avenues for owners. With plans to roll out new room designs and financial models, Holiday Inn continues to attract investment interest.

EVEN Hotels, IHG’s upscale lifestyle brand, introduces a novel investment approach by emphasizing wellness and balance during business travel. The brand’s ethos, “unpack your best self,” and its unique space designs cater to a wide range of consumer preferences, driving revenue while elevating guest experiences and satisfaction.

Franchise Model

The projects announced at the roadshow are structured around the franchise model, underscoring IHG’s dedication to collaborative growth and success in Greater China. This strategy aligns with diverse market needs, offering comprehensive support and facilitating brand standard adherence, tool utilization, and operational efficiency. Since adopting the franchise model in Greater China over seven years ago, IHG has seen significant growth, with nearly 40% of its regional hotels as of December 31, 2023, operating under this model.

Currently, IHG’s portfolio in Greater China features 12 brands, with over 1,200 hotels operational or in development. Looking ahead, IHG aims to continue leveraging its extensive brand portfolio to create memorable experiences for guests and foster high-quality development with its partners in the Greater China hotel sector.

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