IHG reaffirms commitment to China

InterContinental Hotels Group has reaffirmed its commitment to China, its "second home market", as the company toasts the 75th anniversary of its InterContinental Hotels & Resorts brand this year.

In honor of the anniversary, more than 130 InterContinental hotels and resorts are offering a lineup of limited-time offers ranging from anniversary cocktails to stay experiences from September 2021 to April 2022.

With more than 1,000 open and upcoming hotels in China, the British hotel company was one of the first international hotel groups to enter China.

"Our entry to the Chinese market back in 1984 was motivated by the reform and opening-up policy," said Jolyon Bulley, CEO of IHG Greater China. "We captured the significant opportunity and brought our internationally renowned hospitality to Chinese consumers for the first time. We consider we came at the right time when the market was new and filled with huge potential.

"For many multinational companies, China represents strong drivers of growth, such as urbanization, rising wealth from the middle class and government strategies in regard to infrastructure and boosting domestic consumption."

China has become IHG's "second home market", Bulley noted, adding that IHG is the only international hotel group that has set up a regional operation, covering the Chinese mainland, Hong Kong, Macao and Taiwan, as "stand-alone business unit reporting directly to global headquarters".

Currently, its business in China represents about 10 percent of IHG's global open portfolio and over 25 percent of its hotels in the pipeline, "meaning that one in every four IHG hotels opening in the world will be in China", he said.

China's new dual-circulation development paradigm, which takes the domestic market as the mainstay while the domestic and foreign markets complement each other, creates opportunities and promotes consumption within China, according to Bulley, who expressed his confidence in the prospects of China's domestic travel market.

"We see today and the next 10 years as a golden opportunity for travel in China," he noted. "We forecast that there will be more frequent domestic trips but shorter stays, and that the number of domestic trips will grow to over 10 billion by 2028.

"That bodes well for the tourism industry, the airlines, the rail networks and the hospitality industry in general, so we are very, very positive about the dual-circulation strategy and the potential for people to get out and explore the country."

IHG has been further tapping into areas such as West and Central China with high-quality resort and leisure offerings. Seventy percent of its hotels opened and 85 percent of its hotels under construction are in second- to fourth-tier cities, according to the company.

"Traditionally the tier-one cities have been the priority for growth for the industry. But today, most of our hotels that are open and most of our hotels that are in the pipeline are located in the tier-two cities," Bulley said.

"We follow the central government's strategic plans in deciding which regions to go. The top plans include the Guangdong-Hong Kong-Macao Greater Bay Area and we see a huge potential in the area and also the Hainan free trade zone."

To cater to young Chinese travelers, IHG offers a diversified brand portfolio including "brands with personalities" such as the Kimpton and Hotel Indigo, and "brands with cultural heritage" such as Hualuxe and Holiday Inn, according to the company.

"Some of the younger Chinese travelers are looking for a brand which they can aspire to. They are looking for a brand which can provide a personal experience, which they can then share with their friends and family and on social media," Bulley said.

"We are also making sure that we have digital distribution strategies to get to the customers through social media, partners and our own platforms so as to strengthen our penetration to the younger travelers," he added.

In February, IHG launched Journey to Tomorrow, which is "a forward-focused, long-term plan to make a positive difference for people, communities and the planet", according to Bulley.

The plan sets out five ambitions, which include championing a diverse culture where everyone can thrive, improving the lives of 30 million people in communities around the world, and reducing energy use and carbon emissions in line with climate science.

"We have been on a journey to ensure that we are providing great opportunities for local talent," Bulley said. "The IHG Academy, for example, is a program that we have been running for over a decade to build a competitive talent pool for not only IHG but also the fast-developing China hospitality industry," he said. "We now have over 100 IHG Academy partnerships throughout China."

As part of the 75th anniversary celebrations and the Journey to Tomorrow commitment, IHG will donate $75,000 to Water.org, supporting 15,000 people to gain access to clean water through sustainable, locally owned and run projects, according to the company.