Holiday Inn Express' new model aims to boost growth

InterContinental Hotels Group PLC has launched a new franchise model for its Holiday Inn Express brand in China, aimed at increasing the pace of its expansion in the competitive medium-ranged market.

"The new model has been tailored to the Chinese market and provides owners with the benefits of operating a franchise model, but with additional benefits and features from IHG's managed model," according to IHG. Previously, IHG was responsible for hotel management for the property owner.

IHG signed its first "Franchise Plus agreement" with Shanghai Yaqi Business Hotel Co Ltd, for a 260-room Holiday Inn Express hotel in the Hongqiao area of Shanghai. The company says the move has been answering a need from the rapid rise of the middle class in recent years, which has led to significant demand for mid-scale hotels in the country.