plus

IHG to launch China hotel brand in next six months

2 min reading time

Published on 06/01/12 - Updated on 17/03/22

InterContinental Hotels Group said it will launch a new upscale hotel chain in China in the next six months and eventually export the brand across the booming economies of Asia Pacific as it strives to become the operator of choice for increasingly wealthy Chinese travellers at home and abroad.

In an interview with Dow Jones Newswires, Jan Smits, chief executive of the Asia, Middle East & Africa operations, also said the outlook for the hotel industry in his region continues to show positive growth indicators, even as economists and investors are concerned that macro-economic weakness in key Western markets, including the ongoing sovereign debt crisis in Europe, will spill over into emerging countries of the East.The U.K.-based company plans to more than double the size of its operations in China, India and the Middle East in the next few years as traveller numbers are boosted by rising incomes and spending power, as well as increased life expectancy, low-cost airlines and the ease of Internet bookings.Smits said the much-heralded brand in China, yet to be named, will get off to a good start.The company already has around 160 hotels in China, including Crowne Plaza and the luxury InterContinental brands, and about 140 more in the pipeline, but it sees a gap in the market. According to United Nations World Travel Organization data, China's hotel market will overtake the U.S. by 2025 and almost double it by 2039."We have spent quite a long time trying to understand what the domestic Chinese traveller wanted. There's obviously a lot of interest in a domestically-grown brand that has got the benefit of a large international system behind it. Owners have shown significant interest," Smits said.IHG, which largely operates an asset light, franchise model in partnership with hotel owners rather than owning them directly, has signed 12 initial contracts for the new hotel chain across China, including Beijing, Shanghai and both second and third tier cities. It will then expand the brand overseas over the next few years to attract growing numbers of outbound Chinese tourists, which are expected to rise fivefold to 100 million a year in the next decade."It makes a lot of sense to go to [places like] Singapore and Hong Kong and even further afield," Smits noted.Smits said the foundations of the Chinese market remains fundamentally strong for hoteliers, even as economists and analysts see worrying economic headwinds this year for consumers, including high inflation, pressure on exports and a depressed property market.

InterContinental Hotels Group

InterContinental Hotels Group

Hotel Group

  • InterContinental Hotels Group United Kingdom
  • Offres d'emplois 107 currents job offers
SEE THE NOTE
For further

Every week, the HON team brings you an expert look at the world of hospitality. By becoming a member, you will have access to a complete ecosystem: exclusive content, jobs, etc.

BECOME A MEMBER

Sign up to add topics in favorite. Sign up to add categories in favorite. Sign up to add content in favorite. Register for free to vote for the application.

Already signed up? Already signed up? Already signed up? Already registered?