Hospitality Industry Growth – IHG Growing Even Bigger by Adding New Brands
The International Hotel Group (IHG) is the world’s largest hotel group. They have 645,000 guest rooms spread over more than 4,500 properties in more than 100 countries. Currently they have 7 well-known brands and they recently announced that they were going to develop two more brands to add to their family of lodging facilities.
IHG Current Brands
• Candlewood Suites
• Crowne Plaza Hotels & Resorts
• Holiday Inn
• Holiday Inn Express
• Indigo Hotels
• Intercontinental Hotels & Resort
• Staybridge Suites
IHG’s stated mission is to create “Great Hotels Guests Love.” People are the reason for their success. IHG strives to hire, develop, encourage and reward the very best personnel at all levels of responsibility. The Company follows the philosophy of doing what is right and not necessarily what will bring in the most revenue. They are very active in local communities and promote green energy policies in all of their properties.
IHG is constantly changing to keep up with the latest technology and trends in the industry. They are currently developing more than 1,000 new properties that have their current brands.
Earlier this year, the Company announced that they were starting two new brands. One brand will be called EVEN Hotels and it will be centered on wellness, physical fitness and healthy eating. China and Chinese travel is the theme behind the HUALUXE brand. The unusual name derives from the Chinese word Hua which means majestic China and luxe, the abbreviated version of luxury.
After doing an extensive study of the emerging trends in the lodging industry IHG came to the conclusion that more and more travelers were asking for a hotel that would address their health and wellness leads. The name EVEN was a natural choice for the brand as it represents a balance in life.
The Company is making an initial capital investment of $150 million to help launch the brand. EVEN Hotels will be specially designed to serve the estimated 17 million health-conscious travelers in the United States and the many more around the world.
Initially, the startup will focus on the U.S. market where IHG has two-thirds of their almost 650,000 total rooms. Once that market gets up and running, they will begin to build the brand across the rest of the world.
EVEN Hotels will differentiate itself from other moderately priced accommodations by including space in every guest room to workout. Guests can do chin-ups on the coat rack or rent exercise equipment that they can use in the privacy of their own room. Of course there will be a state-of-the-art gym and a restaurant that features a healthy and nutritious menu. The first EVEN Hotel is expected to open in early 2013.
Recognizing the enormous potential of Chinese travel, IHG has created a brand to serve a market that is expected to exceed 3.3 billion travelers by the year 2015. Their new hotels will focus first on domestic travel with locations in more than 100 cities throughout China. Eventually, the HUALUXE properties will spread to major cities around the world to accommodate a growing international Chinese travel market.
Properties will focus on deep cultural tradition, the concept of rejuvenation, the recognition of the importance of status to the Chinese people and finally the creation of familiar spaces that every traveler can appreciate. The first of this new brand’s properties is scheduled to open in late 2013 or early 2014.
IHG has enjoyed tremendous growth in the industry for many reasons. Leadership at the top, exceptional managers and a conscientious workforce all contribute to their success. IHG does their homework and research very well. They identify trends and needs in the industry and then modify their existing properties or build their new ones to fill those needs.
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