With a diverse portfolio of brands catering to evolving traveller preferences, InterContinental Hotels Group (IHG) is well-positioned to capitalise on burgeoning domestic and international tourism trends and markets. Sudeep Jain, Managing Director, South West Asia (SWA), IHG Hotels and Resorts, unveils the company’s strategic growth plan, highlighting a dedication to delivering exceptional guest experiences and creating value for stakeholders.
– Prashant Nayak
IHG Hotels and Resorts has had a great growth momentum in India and has ambitious expansion plans to continue to grow their portfolio across all brand segments. With nearly 50 hotels in the pipeline, IHG aims to double its operating portfolio within the next five years. The development pipeline includes renowned brands such as InterContinental Hotels and Resorts, Crowne Plaza, voco, Holiday Inn, Holiday Inn Express, and Staybridge Suites, reflecting their strategic focus on meeting the increasing demand for branded accommodations across India and providing diverse hospitality experiences to travellers with varying needs. Beyond established destinations, IHG is also targeting high-growth secondary markets while reinvigorating its footing in popular tourist destinations.
Ambitious Growth and Expansion Strategy
In 2023, IHG embarked on a growth trajectory by introducing their global lifestyle brand voco to India and opening Six Senses Vana in Dehradun, Uttarakhand. Additionally, they have observed a notable surge in demand for premium hospitality experiences, and therefore, their owners are also readily partnering with them to bring premium brands to the Indian market. IHG has responded to this demand by opening the first voco hotel in Jim Corbett recently, along with four more signings in Gurugram, Amritsar, Mumbai, and Goa. The brand has received a phenomenal response and is getting a lot of interest from investors. Their strategy to expand premium brands includes the signing of Crowne Plaza in Chandigarh Zirakpur and Dehradun. They are also expanding their Holiday Inn brand family with signings in Amritsar, Kasauli, Zirakpur, Chennai, Guwahati, and Karjat.
“With Holiday Inn and Holiday Inn Express comprising a significant portion of our pipeline, we aim to leverage their success in the domestic tourism market, offering our owners an attractive brand proposition with low development costs. Moreover, we are actively exploring opportunities to introduce new brands from our global portfolio to India. Discussions are underway to bring brands such as Regent Hotels and Resorts, Kimpton Hotels and Restaurants, and the recently launched Vignette Collection and Garner with the right partner in the right location,” informs Sudeep.
Confident Business Model and Robust Systems
IHG’s success hinges on crafting beloved brands that resonate with both guests and owners, ensuring exceptional experiences and robust returns. Central to IHG’s efforts in enhancing guest satisfaction and driving demand are its cutting-edge technology and the IHG One Rewards loyalty programme. These pillars elevate guest experience whilst fostering strong connections with the brand. Complementing these initiatives is their ‘Guest How You Guest’ master brand campaign, dynamically expanding its influence, heightening IHG and its brands’ visibility, and refining perceptions among crucial demographics.
While new designs and service updates keep the brands feeling fresh, Sudeep says, “We are building a leading commercial engine with best-in-class platforms that give our brands, businesses, and owners a competitive edge. Following a record year of enrolments in 2023, our award-winning IHG One Rewards is providing owners with a higher-value customer at a lower cost, with more than 130 million members now responsible for over 55 per cent of room nights globally. Our industry-leading Guest Reservation System enables guests to seamlessly select add-ons to enhance their stays and owners to generate maximum value from their hotel’s unique attributes. We are driving fresh revenue streams, delivering a more seamless and inspiring web and mobile experience, and securing stronger returns for owners through new data-driven revenue management capabilities.”
Sudeep further adds, “As we embark on our growth journey, it is crucial to prioritise responsible growth with a commitment to nurturing our people, supporting our communities, and safeguarding the planet. At the core of our ethos lies our ‘Journey to Tomorrow’ initiative, where we’re actively advancing towards an inclusive workplace that fosters growth for all. We are proud of our progress, including being recognised as one of the top companies to work for, our teams volunteering their time within their communities, and reducing our carbon emissions per occupied room. The stage is set for an exciting next chapter. We are confident in the power of our business model, brands, and enterprise platform to drive performance and continued growth for IHG and our owners.”
Adaptive Approach to Market Dynamics
India has always been an important market for IHG, and they have been on a growth curve in the country for the past several years. Currently, they have 49 hotels across SWA, out of which their India portfolio stands at 46 hotels across five core brands: InterContinental Hotels and Resorts, Crowne Plaza Hotels and Resorts, Holiday Inn Hotels and Resorts, Holiday Inn Express, and Six Senses. IHG’s India portfolio has increased by over 200 per cent in the last 10 years, from 15 hotels to 46 hotels now.
IHG is meaningfully expanding its presence across key markets in the country with new signings and openings. Sudeep shares, “With well-loved brands and a robust business model, our strategy for India has been to respond to market needs and focus on our mainstream brands as our key growth drivers. We follow an asset-light strategy, which enables us to grow our business while generating high returns on invested capital. Our mainstream brands, Holiday Inn and Holiday Inn Express, are a great fit for this segment and have done exceptionally well in the country. Moreover, the investment landscape in India has seen growth in secondary markets, driven by heightened business confidence among domestic and foreign investors.”
Sudeep forecasts that the country’s spiritual tourism and the emergence of Tier-II cities will significantly drive IHG’s growth in the fiscal year 2025. They have been actively expanding their presence in primary and secondary cities in India, catering to the growing demand for quality, branded accommodations across markets. “While domestic tourism remains a key driver of growth, IHG also recognises the importance of inbound travel. With a presence in over 100 countries, they benefit from international guests who recognise and trust our brands, along with the advantages of our rewarding loyalty programme,” asserts Sudeep.
Key Drivers of Growth in Indian Hospitality
Sudeep highlights several key factors driving growth in the Indian hospitality industry amidst recent global events. He says, “The Indian hospitality industry is poised for robust growth driven by increasing domestic travel for both leisure and business purposes, an uptick in inbound travellers, and rising demand for MICE segments. The government’s focus on infrastructure development and India’s potential as a preferred MICE destination is expected to attract a larger share of global travellers. Also, the government’s proactive focus on promoting tourism, spiritual, and leisure travel has further solidified the country’s position as a leading global tourist destination.”
