Worldwide: InterContinental Hotels & Resorts is launching a luxury lifestyle collection brand in a bid to capture conversions from independent and small chain hotels.
IHG is set to announce the name of the brand in the coming weeks. It will join the company’s Six Senses, Kimpton and Hotel Indigo brands already in the luxury and lifestyle segment.
The news was announced on Tuesday by IHG’s CEO Keith Barr. He said: “Over the last four years we’ve added five new brands to create a portfolio of 16, each targeting a specific segment and enhancing our market reach. The addition of a collection brand will provide high quality independent hotels access to the many benefits of IHG’s system, whilst retaining a property’s distinctive identity. There are currently around 1.5 million independently run rooms in the market segments we are targeting, and we expect the collection to attract more than 100 hotels within 10 years.”
In IHG’s half year results, the company added: “Owners of independent hotels and small chains are increasingly attracted by the opportunity to benefit from the scale, expertise and investment of a global system, illustrated by conversions growing to represent a quarter of IHG’s signings over the last 18 months. Owners that join IHG’s new collection brand will gain access to our world class revenue delivery systems, technology platforms, loyalty offering, operational expertise and procurement savings, without high upfront costs or any compromise on their hotel’s distinctive identity or name.”
The collection brand will launch as bookings from domestic leisure travellers, particularly in US and China, lead the group’s recovery. Barr noted that IHG is seeing more group activity and corporate bookings return, with nearly 50 per cent of hotels achieving RevPAR above 2019 levels in July.
Barr warned however that he did not expect a full recovery of business travel until 2023 at the earliest.
“The actions we have taken during the last 18 months position us well to exceed our pre-pandemic level of growth and profitability. While there is a risk of trading volatility in the balance of the year, and discretionary business trips, group bookings and international travel will take time to fully recover, we are confident in the strength of IHG’s future prospects,” Barr said.
Wyndham Hotels & Resorts also recently announced the launch of its Registry Collection as appetite for conversions increases as a result of the pandemic.