1,012 hotels and counting: midscale and luxury driving growth for IHG in Asia Pacific
On Thursday, the company reported that it currently has 1,012 open hotels in the region, with that number set to grow as demand for hotel stays is expected to increase again this year.
IHG Hotels and Resorts SVP and Managing Director, East Asia and Pacific (EAPAC), Rajit Sukumaran, said that IHG is seizing “great long-term opportunities” in this “dynamic” region.
“We know that people have a fundamental desire to travel and meet in person and, whether it’s for leisure or business, we’re there for them and offer a wonderful selection of hotel brands and experiences for all types of travel,” Sukumaran said.
“We’re achieving this by maintaining our industry-leading position in the Mainstream segment through our much-loved Holiday Inn and Holiday Inn Express brands, which make up more than half of IHG’s existing portfolio and half of its pipeline in APAC.
“We’re also investing in our six Luxury and Lifestyle brands, which account for 22% of our global pipeline, around twice the amount five years ago. We have built up a strong presence in this segment in the region, with 45% of the global Luxury and Lifestyle pipeline in APAC.”
Asia Pacific is home to about 60% of the InterContinental brand’s global pipeline, according to Sukumaran.
Regarding hotel development, Sukumaran said conversions represent a strong opportunity for IHG.
“We recognise the power of conversions and with 36% of our global signings in conversions, we intend to grow our brand portfolio in APAC in this space – including Garner, our new midscale conversion brand, which will soon have three properties in Osaka, Japan, and which has a great future across the region,” he said.
Sukumaran said it’s an exciting time for IHG in APAC with owners, buoyed by strong hotel performance, eager to continue investment in the hospitality industry.
“Industry statistics are showing a strong construction pipeline of over 5,700 projects across the region with over 1,200 to open this year alone in the hospitality sector,” he said.
“Overall, we’re really looking forward to what we’re going to achieve in APAC over the next decade as we expand our presence in the region’s established and emerging markets, and deliver experiences cherished by travellers of today and tomorrow.”