IHG to open 38 Middle East hotels in five years

IHG predicted “an era of unprecedented opportunity and sustained growth” for the company as it responded to what it called “favourable socio-economic trends in high priority markets” such as China, India and the Middle East.

The company, which operates InterContinental, Holiday Inn, Crowne Plaza, Staybridge Suites and Candlewood Suites, believed it was “wonderfully placed” to take advantage of favourable economic trends in new and emerging markets.

It cited rapidly growing and shifting populations, heavy investment in infrastructure and significant GDP growth.

Speaking to financial investors and analysts in the City of London, Andrew Cosslett, IHG’s CEO said: “Hotel companies need to anticipate trends at least 10-20 years ahead and we know the world is going to be on the move like never before. The economic empowerment of developing countries and massive growth in business and leisure travel mean we will aim for sustained growth in what could be an era of unprecedented opportunity and sustained growth for the hotel industry.

“Our leading positions in key growth markets, the strength of our brands and our long-term relationships with local partners give IHG a terrific advantage over the competition. We are wonderfully placed to more than double our presence over the next few years in markets such as China, India and the Middle East and our hotels aim to employ half a million people in developing markets by 2025”.

IHG identified several key opportunities including Greater China, where it believes the hotel room market will overtake the US, which is currently the world’s largest, in 2025 and become twice the current US size by 2039.

But the company also highlighted the Middle East as the region’s GDP outpaces the rest of the world while offering “superb RevPAR opportunities”.

IHG already enjoys a market leader position and aims to open 38 new hotels across the region in the next four to five years.

“The other great news is that the more established markets such as Europe and the Americas continue to show good growth. This is giving us the firepower to invest, attract owners and make the most of our opportunities around the world,” Cosslett added.