Hotel Group to double Greater China presence in next five years

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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. InterContinental Hotels Group 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 in an outstanding location 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.

The World Expo 2010 Shanghai China has generated interest and opportunity for the tourism and hotel industry. The international event is estimated to attract a total of 70 million visitors in six months. Since the opening on 1 May this year, 20 million domestic and international visitors have contributed to the demand for hotels in the city. The new InterContinental Shanghai Expo is the only hotel on the Expo Park site.

HNA hoptels include:
InterContinental Haikou: 200 rooms, opens 1st quarter, 2014

InterContinental Changchun: 300 rooms, opens 4th quarter, 2015

Crowne Plaza Changchun Noble: 290 rooms, opens 4th quarter, 2012

Crowne Plaza Kunming West: 300 rooms, opens 1st quarter, 2014

Daniel Fountain / 03.08.2010

Editor, Hotel Designs

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