InterContinental Set to Double China Presence to 250 Hotels

InterContinental Hotels Group (IHG) confirmed plans to double its presence in greater China to over 250 hotels over the next five years. This follows the recent opening of two InterContinental hotels in Nanjing and Shanghai and the signing of a deal with HNA Hotels and Resorts last month for five hotels. IHG is currently the largest international hotel company in Greater China with 131 hotels (45,940 rooms) open and a further 146 hotels (47,848 rooms) in the development pipeline.

Greater China has rebounded quickly from the industry downturn. At its first quarter trading update in May, IHG reported revenue per available room growth for greater China of 22.2 percent and 27.1 percent in April.

The recent deal with HNA Hotels and Resorts includes: InterContinental Haikou, 200 rooms, opens first quarter, 2014; InterContinental Changchun, 300 rooms, opens fourth quarter, 2015; Crowne Plaza Changchun Noble, 290 rooms, opens fourth quarter, 2012; Crowne Plaza Kunming West, 300 rooms, opens first quarter, 2014; Holiday Inn Beijing Sifang, 217 rooms, opens first quarter, 2012.

IHG is the largest international hotel operator in Greater China with 131 hotels (45,940 rooms) open and 146 hotels (47,848 rooms) in the pipeline. This makes greater China IHG’s second largest operating region (the U.S. is number one) and IHG’s combined system and pipeline, of luxury and upscale hotels, is the largest in greater China with 130 hotels (56,626 rooms).

IHG currently has 40,000 people working in China and expects to recruit a further 87,000 within the next five years. IHG currently has a 15 percent share of the branded hotel market in greater China and a 28 percent share of the branded hotel pipeline. IHG properties in greater China are mostly operated under management contracts.