Philippe Bijaoui has over 18 years of international experience in hotel development and real estate, covering acquisitions, asset management, consulting and brand development. Prior to joining IHG, at the end of 2012, he spent five years working at Rezidor Hotel Group as vice president business development for southern and eastern Europe and global head of the Hotel Missoni brand. Bijaoui’s previous roles also include positions as global senior vice president development for Club Mediterranee, managing director at HVS International in Madrid, director of business development at Rezidor Hotel Group, director of acquisitions at City Hotels Brussels and asset manager and developer for Societe Immobiliere Hoteliere (SIH) Group.

How big is the pipeline of hotels (and rooms) already signed by IHG in the world to date?

As of March 31st 2013 IHG has 4, 608 Hotels open globally, that’s 674, 024 rooms, to be precise, with 1, 089 hotels in the pipeline. We had 101 signings over the quarter. And our RevPAR is up 3.1%.

Is the size of the pipeline a real sign of good health and a strong argument for potential investors and present partners – and not just a message to the competition to impress them?

Absolutely! We have one of the cleanest growth pipelines in the hotel industry and the integrity of our pipeline is important to us. As an asset light hotel operator, our pipeline demonstrates the confidence that investors have in our brands which is a good indicator of the scale of benefits that being part of a global branded chain brings.  Our growing pipeline indicates to investors that the IHG system puts heads on beds on the nights they couldn’t secure that business as an independent hotel company, which is why hotel owners choose to become a licensee of one of our brands.

Are there any drawbacks in advocating and publishing a detailed pipeline?

As a listed company, network size and pipeline is a key metric of our success and it’s expected that we’ll share a summary of our pipeline. We publish our pipeline and network size for our four global regions: The Americas; Greater China; Europe and Asia, and the Middle East and Africa region.

Would you say big is not only beautiful but imperative to face the new challenges of marketing and distribution?

Size is essential to justify heavy investments. The lowest cost of sale occurs when guests book direct, and not via online travel agencies or business travel agencies. Guests are more likely to book well-known, preferred brands like Holiday Inn via the brand’s website www.holidayinn.com.  Last year, IHG collaborated with other global brand operators as a founding member of Roomkey.com, launched in January 2012. This is the first industry-owned online hotels search engine and helps deliver business to hotels at a lower cost.  Roomkey behaves like an OTA but delivers business to hotels at a fraction of the cost of an OTA. As technology becomes more sophisticated, it is harder for independent operators to keep pace with change and to resource their marketing accordingly. A good example is search engine optimization, with the sophisticated algorithms that are constantly updated by search engine providers like Google. IHG's powerful search engine optimization strategy drove 25% of total web traffic to our sites in 2012, generating more than $1.4bn in checkout revenue for our hotels. We manage more than eight million keywords in multiple languages to direct travellers to IHG brands when they research an upcoming trip. Independent hoteliers seldom have that purchasing power or dedicated web expertise.







A large portion of the pipelines of leading hotel groups is concentrated in emerging countries, specifically in Asia-Pacific, and even more specifically in Greater China … could the Gold Rush come suddenly to an end or could the final result appear disappointing in terms of revenue?

First of all, IHG continues to perform strongly in our main market, the Americas, where we have over 3,500 hotels.  As an asset light company we work with our third party owners to grow our network and pipeline in all markets. In absolute terms we have more rooms in our pipeline in the Americas than any other region, and the next greatest absolute growth opportunity is Greater China. Percentagewise the growth is greatest in the emerging markets, but remember that these are often coming from a smaller base level as the industry in these countries develop alongside the demand drivers. Our brands are popular in China, the Middle East and emerging markets like Russia, the CIS countries and Turkey. Our distribution strategy is focused on key cities and on markets where we know we can achieve scale to deliver the very best returns for our owners.

What about the “Old Continent”, would you say that most of the markets are mature ones with little potential for an intensive growth of new supply?

Not at all, we continue to see demand for our brands in key cities in ‘the Old Continent’. There’s a huge opportunity for rebranding’s and office conversions and many hotel owners are choosing to rebrand with us to improve the return on their investment. If I take the specific example of Russia, there is still a lot to be done. Last March we signed a multi-development agreement with Regional Hotel Chain to build 15 Holiday Inn Express Hotels in Russia meaning outside the current developments in Moscow and St-Petersburg. A brand such as Holiday Inn Express is often located in secondary cities. The first example is underway in Voronej and is geared at international clients who are familiar with the brand, but also at local travellers who can afford to discover it.


Should the development in Europe concentrate on conversion more than newly-built properties?

One thing is certain, hotel development is complicated in mature countries: the markets are more competitive, the real estate is more expensive, the construction permits more complex to get. Therefore, conversion is easier to finance, because many lenders don’t want the risk of project finance. We continue to see some great new build hotels coming into our pipeline as well. Banks are more likely to fund a branded hotel than an independent hotel.

Are these markets receptive to new concepts, such as Indigo and Staybridge?

We have over 14 Hotel Indigos in our development pipeline in Europe, and a resurging interest in our extended stay brand Staybridge Suites. Hotel Indigo is an upscale boutique brand that guests love and hotel owners love it too, because it’s a great brand for conversions. We have targeted key European cities as a main priority for Hotel Indigo. Increasing segmentation means that new concepts are being tailor-made for target guests which in my opinion is a good thing. It displays a better understanding of the variety of different consumer needs that exist and means the industry is getting better at understanding what 'good service' and a 'great hotel' actually means in the modern world. We have targeted 25 European cities as a main priority for Hotel Indigo and we are proud to announce the first Hotel Indigo in Paris.







Is the growth of Holiday Inn Express a sign that this “select” service concept is more in line with the needs of the new hotel consumers?

To bring flour to your mill, as of March 31st 2013 we have 43 Holiday Inn Express hotel properties in the pipeline, accounting for almost half of the properties we have in the pipeline  for Europe. Holiday Inn Express has a lean operating model, which means the brand delivers strong returns for investors. Guests love our brand features like the award-winning guest room design, free breakfast and free Wi-Fi. For guests on the move, Holiday Inn Express is a winning choice which is why Holiday Inn Express continues to be our most popular brand for development. But it’s all about the demographics of the location. Demand drivers and local competitors are unique to the micro location and determine the best brand for a particular site. We have a family of nine brands that have been uniquely developed for different stay occasions. Holiday Inn Express is the right brand for some markets, and for other locations, only an InterContinental will do.

Would you say that the relationship with investors and property owners are tenser than before?

I believe that IHG has reached a balance in the relationship with our owners. I advise my team to never impose clauses that they would never accept for their own hotels and that do not make economic sense for a property owner. Our standards are important – they drive the quality and consistency of our global brands and help ensure our hotels are safe. Some of our brand standards, such as fire life safety, go above and beyond local requirements, but we don’t compromise when it comes to safety and protecting the reputation of our brands. A good development relationship implies always proposing an alternative solution that respects our brand standards, and the return on investment requirements of our owners. Outside of the hotel sector, such as in the fast food segment, brand standards allow little margin to maneuver, so why would we accept gaps? IHG is unique in that we have the IHG Owners Association which coordinates a series of owner-led working groups with a focused on Regions, Brands, Revenue Delivery, General Manager Development, Standards and Responsible business practice. Together, IHG and owners use this collaborative platform to share expertise and best practices to improve system delivery and performance—which reinforces the power of our relationship. In Europe, the IHG Owners Association is located in our global headquarters in Denham and our owners are consulted for any future developments. A franchisee could ask for an explanation and even compensation if a new development affects its activity.

Have you already thought of what could be the next generation of hotel concept, based on the trends that were exposed by your recent study?

We’re getting better all the time at identifying the right hotel for the right audience and meeting the needs of our guests. As different types of travellers emerge and develop, so are the structural designs of our hotels. The Open Lobby Concept for our Holiday Inn brand is a great example of this. The Open Lobby Concept is more than a hotel bar, restaurant or lounge - it combines all the existing public spaces into one open, cohesive space where guests can sit comfortably to work or relax. Younger business travellers are not used to having an office, and enjoy sharing working spaces with others. The Open Lobby concept supports this trend.
We also have a strong track record of launching global brands. Last year we launched EVEN Hotels in the Americas which meets the large and growing customer demand for a healthier travel experience. No other brand provides a holistic wellness experience under one roof, at a mainstream price.
In China we launched HUALUXE Hotels and Resorts, the first international upscale hotel brand created in Shanghai especially for Chinese travellers. Hua roughly translates as majestic China and Luxe represents luxury, which really brings to life the unique experience we are unveiling today. The HuaLuxe brand has been developed to reflect the way business happens in China: we respect the importance of personal relationships in order to enable accomplishment and the role that familiar, natural spaces and service plays in cultivating this. We’re making changes in our business to accommodate these new trends. On the 1st July we launched IHG rewards Club formerly known as Priority Rewards Club which will provide members with exciting new benefits such as free internet, which is an industry first.