IHG Development Update China

IHG Extends Franchise Model to Crowne Plaza and Holiday Inn Brands in China

IHG will grow the franchise business in China, working with established strategic partners who have proven track records of superior hotel management and operations experience.

IHG

IHG (InterContinental Hotels Group) announced this week the extension of its franchise offering in China to Crowne Plaza Hotels & Resorts, Holiday Inn and Holiday Inn Resort.

The announcement builds on IHG's highly successful 'Franchise Plus' model for China, which was launched in May 2016. 'Franchise Plus' is tailored specifically for Holiday Inn Express. It has helped drive accelerated growth for the brand, with 68 signings since launch, six hotels already open, and a further ramp-up in activity expected over the next 12 months. This has brought the total number of Holiday Inn Express properties in Greater China to 95, with a further 134 hotels in the pipeline, including 62 that are 'Franchise Plus'.

IHG Extends Franchise Model to Crowne Plaza and Holiday Inn Brands in China

Jolyon Bulley, Chief Executive Officer, Greater China, IHG, said: "IHG has been in China for more than 30 years. We have witnessed the evolution of the Chinese hospitality industry first hand, and have acquired deep market expertise along the way. Based on the maturity of the industry and sophistication of Chinese owners, we believe that now is the right time to expand our franchise model. This will help us accelerate the growth of our brands, and will bring opportunities to access untapped markets, working closely with owners."

Liu Shijun, Secretary-General, World Tourism Alliance, commented: "In its 13th five-year plan, the Chinese government made tourism a pillar industry, which created huge opportunities for the development of hotels. IHG is an industry leader in China and by extending its franchise model, it will continue to grow, building on more than three decades of experience in the market."

IHG is one of the largest franchisors in the hotel industry, with more than 80% of its near 5,300-hotel global estate operating under franchise models. It has a strong track record of supporting franchisees around the world, matching owners with the right brands and markets, to deliver a high-quality experience for guests, and effective financial returns for partners.

IHG will grow the franchise business in China, working with established strategic partners who have proven track records of superior hotel management and operations experience.

IHG has signed a strategic partnership with leading hotel company and trusted long-term partner, HK CTS Hotels Co., Ltd., to explore opportunities for multiple hotels to be operated under a franchise model. As part of this:

IHG has signed the Holiday Inn Beijing Lido on a franchise contract. The hotel will be rebranded from HK CTS Hotels' Metropark Lido Hotel Beijing, in late 2018.

IHG's existing Crowne Plaza Beijing Lido hotel will transfer from a managed to a franchise contract in early 2018.

IHG has also granted a franchise license to another long-term partner in Greater China, Shanghai China Coal Mansion Co., Ltd., for its existing Holiday Inn Shanghai Pudong property. The hotel will transfer from a managed to a franchise contract in early 2018. 



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