Inside IHG: Start Reading
Inside IHG: Start Reading
Inside IHG: Start Reading
Keith Barr
CEO
4
Summary 04
Regions 06
Features 09
from Keith improve. As planned, our higher than average removals rate
in 2021 meant net system size growth was flat for the half as
our hotels with critical operational enhancements and hotel
recruitment resources.
we focus on protecting brand perception and quality. On a
Hi everyone, gross basis, our estate grew by 5%, with 132 new openings, We’ve also rolled out digital check-in to 3,000 hotels in the
and as owners look to IHG and invest in the future, we also US and Canada in three months and are piloting in other
During the first half of the year we’ve seen trading greatly signed another 203 hotels, with the development landscape regions, and important groundwork is underway in every hotel
improve, with the welcome sight of more and more guests continuing to improve. for the rollout of attribute pricing for our Guest Reservation
coming back through the doors of our hotels, supported by System. Good progress is also being made on our priority to
increased vaccine rollouts and an easing of restrictions in Evolving and growing our brand portfolio care for our people, communities and planet, including the
some markets. The impressive enhancements we’ve made to several of our global rollout of conscious inclusion training for corporate
brands, alongside the addition of five new brands in just four colleagues, new water stewardship programmes in China and
Difficult challenges still remain in certain countries, but, led years is creating a real buzz around our portfolio – and we’ve Australia, and the updating of supplier contracts needed to
by our largest markets, the overall trend is encouraging, and got more exciting news today with the upcoming launch of a achieve a switch to bulk bathroom amenities in 2022.
the ways in which we’re caring for our guests and supporting new Luxury & Lifestyle collection brand.
our hotel teams and owners is helping strengthen our I want to thank you all for everything you’re doing to support
performance, powerful brands and exciting growth prospects. We’re keeping a tight lid on its name and features for a our guests, owners and one another. The remainder of 2021
few weeks longer, but it will help accelerate our growth will undoubtedly still have its challenges and be fast moving,
Our performance by attracting independent hotel owners looking to quickly just as we’re seeing with restrictions returning in some of
If we compare this year’s performance with pre-pandemic access our world class systems, loyalty offer and cutting-edge our markets like China and Australia. But we can see clear
2019 figures, Global RevPAR for the first six months of the year technology, and in turn allow us to meet traveller demand for evidence that as vaccines rollout, travel rebounds, which
was down 43%. However, compared with 2020, it was up 20% high-quality unique hotels. brings exciting times ahead for IHG and our industry.
and the material improvement we’ve seen from Q2 onwards
continued into July, where nearly half of our hotels globally As we place a sharp focus on the four priorities behind our Stay well.
achieved RevPAR above 2019 levels. Operating profit also Next strategy, it’s encouraging to see so much momentum
picked up strongly to $188m. building across the business. Highlights include our Guest
Satisfaction Index being net positive globally throughout
this year and ahead of peers, new IHG Hotels & Resorts and
View
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IHG 2021 Half Year Results
Our global presence Stock Exchange Announcement
*Comparison versus 2019 has been provided to give a more accurate representation of performance against a more normal trading environment.
“We head into the second half of the year with growing confidence as
Summary
demand continues to rise, not just in leisure, where bookings are close to InterContinental® San Antonio, Texas, US
2019 levels, but now also in group and corporate business too, albeit at a The new InterContinental® San Antonio represents a
slower pace. We continue to grow with 84 hotels opened in the first half landmark signing in the city and will undergo a $50m luxury
and 75 new ones signed across our brands. We remain firmly committed renovation to make the most of San Antonio’s popularity for
to supporting our owners and hotel teams manage rising occupancies and both conferences and leisure. Due to open in early 2023,
evolving guest expectations as more people travel to our hotels.” the 21-storey building will include 390 beautifully appointed
rooms, a rooftop pool with breath-taking views of the skyline
Elie Maalouf
Regions
“Our doors are opening again, and wherever restrictions are being lifted, we
Summary
are seeing encouraging signs of returning demand, alongside strong signings Crowne Plaza® Nice – Grand Arenas, France
momentum as owners look to us and invest in the future. In many parts of the Less than a five-minute tram ride from Nice Côte d’Azur Airport
Middle East, family celebrations, weddings and big conferences are being and just 10 minutes from Nice city centre, the new Crowne
planned again, and in the UK, domestic travel is booming, which has driven a Plaza® Nice – Grand Arenas has arrived to offer something
significant increase in occupancy levels. Challenges have come thick and fast fresh in this increasingly popular region for business travellers.
for us all and continue in different markets, but as vaccinations roll out, we’re Following hot on the heels of the recently opened Holiday Inn®
seeing brighter times ahead, supported by the vital ongoing work to support Express Nice – Grand Arenas, this new Crowne Plaza offers eight
our hotels manage demand, recruitment and operations.”
Regions
“Our rapid growth in Greater China continues with 7,000 rooms opened
Summary
and 16,000 more signed into our pipeline, bringing the region’s combined HUALUXE® Ningbo Harbor City, China
open and pipeline hotels to over 1,000 properties. In the half, domestic
travel revived strongly, especially during Qingming Festival, Labour Day Located in the Beilun district that’s close to the port and tech
and Dragon Boat Festival. Although there has been a sporadic resurgence zones, the new HUALUXE® Ningbo Harbor City is perfect for
of Covid-19 in a few cities recently, we’re confident it will be contained and both business and social gatherings. Inspired by contemporary
expect both leisure and business demand to expand further in the Chinese art, the 345 rooms ensure a stylish stay, while this
second half.” new opening provides everything guests know and love from
Jolyon Bulley the HUALUXE® brand, including authentic local cuisine, fully
Regions
A brand is born
Features
As we push to take our growth to the next level, we’re bringing a brand-new brand to market in Luxury & Lifestyle.
As travel demand increases and different markets travellers for one-of-a-kind stays, backed by
continue to recover, we’re creating another the reassurance of IHG’s trusted reputation and
moment to celebrate with the upcoming launch leading loyalty offer. Having a wider variety of
of an exclusive new Luxury & Lifestyle hotels in sought-after resort and city locations
collection brand. also strengthens the attractiveness of our IHG
Rewards programme overall, giving our millions
We’re keeping a tight lid on the brand’s name and
of members even more opportunities to earn and
features for just a few weeks longer, but we’re
burn points with us time and again.
excited about the prospect of providing guests
and owners with a distinct new option that has the The new collection brand will be the sixth brand
potential to grow to more than 100 hotels over we’ve launched or acquired in the past four years,
the next decade. complementing both our voco™ conversion brand
in the upscale space and our existing Luxury &
As a collection brand, it will appeal to owners of
Lifestyle portfolio, which already spans more than
high-quality independent Luxury & Lifestyle hotels
400 hotels and 100,000 rooms.
seeking to quickly benefit from IHG’s world-class
technology and revenue systems, operational With conversions already growing to represent a
expertise and loyalty offer, without the need for quarter of our signings over the past 18 months,
high upfront costs or compromise on a property’s there’s a clear opportunity to go even further with
unique character, style or name. our new collection brand, which will operate in
a segment worth more than $100bn in rooms
In turn, IHG welcomes exclusive properties into
revenue in 2019, and where there are currently
our portfolio that will accelerate our growth and
more than 1.5 million independent rooms. Watch
meet increasing appetite from luxury & lifestyle
this space!
everyday travel
Regions
“As a member of avid Since launching in 2017, avid® has gone from strength to strength,
Hotels’ Owner Advisory celebrating its 40th opening in July and a rapidly growing pipeline.
Board, I take a great pride We take a look at the secret of its success.
and ownership in the
Features
rising demand
Regions
It’s amazing to see just how quickly things are improving around the As well as strengthening the size of our teams, we’re also improving how we
world, and while some countries still have a way to go, people are support and develop our existing talent so they have access to opportunities
travelling and connecting freely in many of our biggest markets. It’s that will help them forge a rewarding career at IHG. This includes new
a milestone moment in this recovery, and as more guests head back systems and talent profiles to help us identify our leaders of tomorrow
through our hotel doors, we need to make sure our teams are geared up and allow us to fast track their development. We’ve also updated our GM
and supported to welcome and look after them. programme to provide a three-stage Begin, Belong and Beyond learning
experience, which ensures our GMs have access to the knowledge and
One of the big challenges in our industry right now is recruiting support they need to thrive and lead high-performing teams.
and retaining talent to meet demand, and so we’re connecting our
owners with agencies to help them find the right people. We’re also We need to make sure everyone knows the world of hospitality is full of
providing tailored managed and franchised hotel solutions, which opportunities. So we’re also partnering with AHLA and UK Hospitality to
include new hiring resources to secure the right candidates, using our develop the next generation of talent, and supporting the Sustainable
masterbrand to showcase how rewarding it is to work for IHG and our Hospitality Alliance’s global youth employment programme to give people
brands, deepening our partnerships with job platforms, and increasing the skills they need to take their first steps towards a rewarding career.
awareness of vacancies through targeted social media content.
owners, who praised the impactful way it dealt with the pressing issues they
face today, from recruitment and creating the right brand service culture, to
providing enhanced food and beverage experiences. They’ve told us first-
hand how it’s put their teams on the front foot when it comes to meeting
guest expectations, streamlining operations and delivering True Hospitality
to an increasing number of guests.
continue doing all we can to protect Guest Love scores across our global
estate. If we keep providing great experiences, we’ll drive repeat business
“
to our hotels, which will increase both our owners’ returns and our market
share. To ensure each hotel is maximising its performance, we’re rolling out
our Guest Love Series in EMEAA to provide every property with a clear plan The Hotel Recovery Series
for progress, while GMs will receive one-to-one consultations to help put
addresses the challenges we’re
Features
Many of our full-service brands in the US are also seeing a return to table
service for breakfast and dinner, so we’ve built in a little flexibility to help
owners flex options based on demand. And where safety guidelines don’t
allow for our guests’ usual choices, we’re providing innovative enhanced
options, from coffee barista experiences to a chef’s table in their rooms.
To make sure we keep hold of great F&B ideas, GMs from across the
Americas and EMEAA are now using our FUSE platform to pass on
their expertise to others. It’s proving a brilliant way of showcasing the
tremendous knowledge, resourcefulness and creativity of our hotel teams
– keep it coming!
How would you describe IHG’s approach to C&T? streamlined booking and on-property amenities, services and
more. We’re kicking off testing later this year, so stay tuned.
Creating digital advantage is a priority for all areas of the business,
“
so we’re constantly seeking ways to innovate through collaboration
with other teams. But we can’t invest in technology for the sake The rollout of digital check-in (DCI) looks to be
of it, nor can we invest in every option. We have to be thoughtful gathering pace. What’s the latest and where We’re constantly seeking
and look at what will make the biggest difference to meeting guest can the technology take us next? ways to innovate through
expectations for seamless, tailored experiences, while also driving
value for our owners and finding targeted ways to make sure our A lot of work has gone into DCI to ensure we get it right. Launched collaboration, and it’s
systems, loyalty offer and marketing approach are as powerful as in February, it’s now in around 3,300 hotels in the US and Canada
possible. We’re building great momentum and it’s exciting to see and expected to hit 4,000 by the end of the year. We’ve also exciting to see what’s on
what’s on the horizon. started pilots at hotels in EMEAA, MLAC, and Greater China and the horizon.”
making progress there.
We’ve heard there’s going to be a new IHG App. DCI is changing the way guests interact with our hotels and George Turner
our ops team have been doing some great work helping hotels Chief Commercial &
What can you tell us? Technology Officer
achieve a 90% fulfilment rate. So as DCI expands globally, C&T are
Yes, we’re working with our marketing teams to deliver a powerful thinking ahead to what’s next, and the natural progression is front
next-generation app that will deliver more features and an improved, desk digitization, where a hotel colleague can grab a tablet and
modernised experience for our customers. It will enable greater check-in a guest at the valet when they pull up or while they enjoy
engagement with IHG Rewards® members and support guests a drink at the bar. This will take digital check-in to the next level
throughout their travel journey, from dreaming and planning to by providing flexibility for guests and colleagues and reducing
operational costs for hotels.
for guests that also drives more value for owners – and the key is apps and platforms to live on the cloud – and that means that the
attribute-based selling, where a room is priced to reflect its unique infrastructure is already in place to launch new hotel products and
attributes, such as a view of London’s Tower Bridge. In preparation services at pace, saving time and money.
George Turner
Chief Commercial &
Technology Officer
We’ll also be taking time to recognise the wonderful efforts our hotel
teams are making throughout our recovery with a global thank you
campaign. You can share your thanks on your social channels via our
digital thank you card, tagging your favourite IHG hotels, and we’ll also be
showcasing some of the best stories of how our hotels are stepping up
to support our guests and responding to various challenges as demand
picks up.