Hotelier IHG doubles down on China, targets high-end hotel brands

InterContinental Hotels Group (IHG) is doubling down on the China market and plans to develop in the luxury segment to compete against other hospitality giants, according to its chief executive for the country.

“Luxury is a big focus area for us. It’s a US$60 billion segment that’s expected to grow by half over the next decade,” said Jolyon Bulley, CEO of IHG Greater China.

“We felt that in the upper-luxury segment we have a gap, therefore we are looking to either develop, or acquire brands. For now we feel we have levelled out. We have mainstream luxury in the InterContinental brand, boutique luxury in Kimpton and upper luxury in Regent. I see huge potential for these brands.”

He was speaking on the sidelines of an “owners workshop” in Chengdu on Tuesday, an event aimed at helping IHG connect with hotel owners .

Marriott Hotel, one of IHG’s biggest rivals, has a sprawling portfolio of luxury brands, including the Ritz-Carlton, St. Regis, JW Marriott, W Hotels and Sheraton. Another giant, Hilton Hotels & Resorts, boasts Waldorf Astoria, Conrad Hotels & Resorts and DoubleTree.

IHG has been aggressive in its pursuit of more premium, upscale brands globally. In March, it bought a 51 per cent stake in Taiwan-based luxury hotel chain Regent Hotels&Resorts for US$39 million.