IHG announces plans to increase portfolio with new soft and luxury brands
Hotel giant InterContinental has announced it’s intention to develop a new luxury hotel brand as well as a new soft brand
Hotel giant InterContinental has announced it's intention to develop a new luxury hotel brand as well as a new soft brand. Following the launch and success of it's Avid Hotels brand in the mid-scale sector in September, IHG has spotted a few more gaps in their portfolio that it's planning on filling. The plans come as IHG has it's sights set on infiltrating previously unchartered corners of the hospitality market.
The two new areas that IHG will be focusing on according to a recent statement by Paul Edgecliffe-Johnson, CFO of the hotel organisation, will be in developing a soft brand collection, a move which will allow it to expand their portfolio while having to do little leg work in terms of establishing new hotels, and rather working with existing hotels who will benefit from being able to use the parent brand's reservation system, for example. The other proposal is to develop a new luxury brand, something which Edgecliff-Johnson said was a logical next step for IHG.
Detailed plans of these two developments have yet to be revealed, but IHG faces stiff competition from other hotel companies such as Accor, who is busy diversifying into other markets and is on something of an acquisition spree. Although IHG has a reputable standing within the hospitality industry, it must be careful to make timely decisions in case there are other sharks hunting in their territory. However, Edgecliffe-Johnson doesn't see this as posing a huge problem to IHG as long as it focus on expanding their portfolio into other reaches of the market."A lot of owners would like to do more with us, but if they've already got an InterContinental in the market, then it's difficult for us to give them another offering with the current number of brands we've got. So we think there's more business that we could do if we had something else in that segment."
Seeing as China and Europe have been the biggest performers within their stock in recent months, it could go either way in that these luxury and soft brands could capitalise on this strong performance, or IHG could choose to put more energy into it´s weaker US market. It is likely that more will be revealed once these plans are more concrete.
The following projects by IHG are currently in the pipeline:
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More information on IHG Hotel Projects can be found on TOPHOTELPROJECTS, the specialized service provider in the exchange of cutting-edge information of hotel construction in the international hospitality industry.
Jule Grass
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