IHG eyes robust growth in India & South Asia post-pandemic recovery, ET TravelWorld

The InterContinental Hotels Group (IHG), one of the world’s largest hospitality companies, is well-positioned to tap into rising opportunities in the Indian and South Asian markets as the travel and tourism industry continues its robust recovery post-pandemic, according to the company’s Managing Director for South West Asia.

In a recent interview with ETTravelWorld, Sudeep Jain, Managing Director for South West Asia at IHG Hotels & Resorts shared insights into the company’s impressive post-pandemic recovery and its ambitious growth plans in the Indian and South Asian hospitality sector. IHG is gearing up to harness the burgeoning opportunities presented by the vibrant travel and tourism industry in the region.

IHG has seen business exceed pre-Covid levels in 2019 across its hotels in the region, led by increased leisure travel as well as the return of corporate travel and events

Rising above pre-Covid levels
Jain said that IHG’s performance in the South Asian market has been nothing short of exceptional, with business and hotels performing above expectations. He expressed the significance of face-to-face interactions and highlighted the pivotal role they play in business and personal connections which ultimately leading to more business for hotels in India and around South Asia. “Confidence is back in the market with people once again experiencing the importance of face-to-face interactions,” he noted.

While in Q1 2022, IHG’s performance in the South West Asia region was below 2019 levels, this has turned around in Q2, and company’s total revenue has exceeded 2019 levels. IHG hotels’ occupancy jumped from 60 per cent in Q1 to 74 per cent in Q2, demonstrating a 26 per cent jump YoY for H1, which is 2 per cent ahead of 2019 levels.

Going forward, continued hotel development supported by a profitable operating environment would fuel further growth.

IHG, known for its extensive portfolio of renowned brands like Holiday Inn, Holiday Inn Express, and Crowne Plaza, aims to cater to the diverse and evolving preferences of Indian travellers. Jain revealed that his company is committed to introducing more of its global brands in the luxury and premium segments, catering to the discerning tastes of Indian consumers.

Lauding the vastness and diversity of the Indian hospitality sector, Jain highlighted the unique segmentation and substantial market size of India during the conversation while mentioning that IHG has grown significantly in the country in last decade. “In an impressive feat, IHG has tripled its portfolio in India over the last six to eight years,” he said.

IHG’s India portfolio has increased 173 per cent in the last 6-8 years (2013-2021) from 15 hotels (2,843 rooms) to 41 hotels (7,136 rooms) now.

Unleashing the potential of South West Asia
According to Jain, the South West Asia region, encompassing India, Sri Lanka, Nepal, and Bhutan, holds immense untapped potential in the hospitality segment, thanks to its sizable population and diverse traveler preferences. He informed that HG has set its sights on expanding its presence across this region to capitalise on the escalating demand for travel and hospitality services.

“As hotels make money, people want to build more hotels, you know, as they build more hotels, the opportunities for us are there,” he mentioned.

Technology & sustainability initiatives
Jain stated that IHG is dedicated to embracing technology and sustainability initiatives to enhance both guest experiences and owner satisfaction. Initiatives around AI, mobility, and carbon reduction remain at the forefront of the company’s priorities as it strives to offer a seamless and eco-conscious hospitality experience.

Jain noted the introduction of IG Concerto, a cloud-based system providing real-time data and transparency to hotel owners, as an example of IHG’s commitment to technological advancement. IHG Concerto is the technology backbone to the companies guest reservation system, loyalty program, guest services, and internal Merlin platform.

“The company is trying to be ahead of the game in terms of creating the enabling technology, whether it be the property management system, operating systems at the property or the guest experience,” he mentioned.

While IHG is geared up for exponential growth, Jain acknowledged the persistent challenge of securing skilled staff. The industry is collectively addressing this concern, recognising the need for fundamental changes in workforce development.

Vision for future
With the strong recovery trends, an expansive brand portfolio, and strategic regional expansion plans, IHG stands well-positioned to seize a substantial share of the forthcoming opportunities within the rapidly growing Indian and South Asian hospitality sector.

On IHG’s brand in India, Jain said that its biggest brand platform in India will always be Holiday Inn while Holiday Inn Express can be placed in virtually all the markets in the country. “It is a very reliable, industry-statistical brand.” He further added that need for brands like Voco and Six Senses and Indigo is also on rise with changing consumer preferences and rising appetite on spend more on hotel experiences.

Currently, InterContinental Hotels (IHG) has 41 hotels in India with 44 hotels in South West Asia operating under five core brands – Holiday Inn, Holiday Inn Express, Crowne Plaza, Intercontinental Hotels & Resorts (Mumbai & Chennai) and the Six Senses brand in Fort Bharwara, Rajasthan.

Earlier this year, IHG announced the introduction of its Voco brand in India after it signed three properties across India in Gurugram, Jim Corbett and Goa. Jain said they will grow by approximately 112 per cent (by number of rooms) in the coming 3 to 5 years as IHG adds 53 hotels (8,550) in its pipeline in South West Asia.