IHG to Double Greater China presence in Next 5 Years25 August 2010
InterContinental Hotels Group (IHG) has recently 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 CEO Andy Cosslett said: "This year we are opening over 30 hotels in Greater China. This includes seven InterContinental, seven Crowne Plaza and the debut of Hotel Indigo on the Bund in the centre of Shanghai, following our strategy to develop an upscale presence in key locations. Our upscale hotels in Greater China have an average room count of 350, significantly larger than our other markets, with the vast majority being managed by IHG. This gives us a highly profitable and significant business in China with annual gross hotel revenues in excess of US$1 billion."
Greater China has rebounded quickly from the industry downturn. At its first quarter trading update in May, IHG reported RevPAR growth for Greater China of 22.2% and 27.1% in April.
A recent guideline issued by China's State Council confirmed the Chinese Government has established tourism as a key economic pillar, with a total of 25 national and regional development plans in place with tourism as a strategic focus. The Government is also investing US$120 billion in its railway network, laying over 85,000 kilometres of freeway and constructing 97 new airports to upgrade the transport infrastructure across the country.
HNA hotels include: InterContinental Haikou, which will have 200 rooms when it opens in the first quarter of 2014; InterContinental Changchun, to have 300 rooms when it opens in the fourth quarter of 2015; Crowne Plaza Changchun Noble, to have 290 rooms when it opens in the fourth quarter of 2012; and Crowne Plaza Kunming West, which will have 300 rooms when it opens in the first quarter of 2014.