Hotel Industry Forums

IHG is doing well in Asia Pacific region following the new deals in Thailand.However after a big sales of stake they did not constrate in Asia market as other people expected.They loose business opportunities in the new Bangkok Airport and Guangzhou Airport.There is no airport hotels planed in the major getaway cities in Asia region.Compare with other hotels group like Accor, IHG is loosing their battle in some field.The weakness of IHG in Asia/Pacific region is:

1>, Crowne Plaza is used by real estate groups to gain fame.And after the property is sold the hotel do not exist any more after 1-2 years opening.The example is Crowne Plaza Hainan Island and Crowne Plaza Karon Beach Phuket

2>,They did not initial the market of the strong needs of budget hotel brand in Australia.The Express by Holiday Inn has no plan to enter Australia/New Zealand which is a big mistake.Following the sucess of Formula 1 under Accor in Australia.IHG should realize that there is deep reason for Express by Holiday Inn become the number 1 budget hotels brand in UK market.And be one of the sub-market of UK they should realise the importance to offer the UK travel the budget hotels in Australiasia

3>,Their performance in Southereast Asia is terrible.Accor is strangly holding Thailand/Indonisia/Combodia/Viet Nam market.There is over 10 hotels in Bangkok alone with Accor.Varid from High-end market to low-end Ibid also the residential property.

4>,IHG is the biggest player in Chinese group.But there is no Chinese language service in most of its overseas hotels and even the hotels with a occupancy of 80% guests are Chinese in Bangkok.Accor is pushing the Chinese menus and Chinese signature in its hotels all over the world.

5>,The keeping weakness of the airport hotel.Novotel successfully got the contract with Bangkok, Guangzhou and Hong Kong airport.They are building the image in Asia of being a airport hotel piorneer and leading company.It will be too late for IHG to catch up.

6>,The up-end market is short sighted.Recent Westin announced the opening of Westin Bund Shanghai.It is a pity for InterContinental.They always have a plan for possible InterContinental Shanghai( the present one is IC Pudong Shangai).Now Westin is ahead of the game as they loose the Grand Hyatt Shanghai by market mis-judging.

It is still a long way for IHG to go in Asia/Pacific region.They really need to do a lot like purchase new hotels and have the right develope plan.

2006-10-28 Chong Cao