The next installment in our exclusive series examines how the development of the British hotel giant behind the InterContinental and Crowne Plaza brands appears to have plateaued.
It’s no secret that hospitality has been hit hard by the emergence of Covid19, which has presented all kinds of headaches for the six major hotel groups, Marriott International, Hilton Worldwide, Accor, IHG, Hyatt Hotels Corporation and Radisson Hotel Group. In this report, we’ll explore the impact of the crisis on IHG’s development list.
Based in the UK, the London Stock Exchange-listed company has around 6,000 properties in more than 100 countries around the world, with a portfolio of brands including InterContinental, Six Senses and Regent in the luxury realm and Crowne Plaza, Voco, Even and Hualuxe in the premium sector. But that impressive scale meant the company found itself in the crosshairs in early 2020, when many hotels were hit hard as markets rushed to impose strict travel bans, curfews. and closures to limit the spread of the coronavirus.
IHG development slate climbed 6%
Based on statistics compiled by our research team from the TOPHOTELPROJECTS build database, we can get some insight into how the pandemic played out on the ground at IHG:
|Trimester||Dated||Current hotel projects|
The first thing to point out is that IHG had 453 hotel projects underway on May 13, 2020 when Covid19 swept across Europe, North America and Latin America, but surprisingly enough its number of projects has increased by 6% to reach 478 on October 4, 2021. – this is the second percentage increase for the top six hotel groups, behind Accor (+ 8%). But if we take a closer look at the quarterly breakdowns, we notice that the rise can be mostly attributed to the second half of 2020, with the total dropping from just 455 on July 2 to 476 on October 2. The numbers have remained essentially stable thereafter, hovering around the 480 mark since then.
We can’t say for sure why IHG experienced a growth spurt at the end of 2020, despite all the uncertainties surrounding Covid and even Brexit in its home market, but the fact that it has happened indicates that management is resisting. the temptation to kill it hatch and abandon a large number of hotel projects. And while there are questions as to why development activity has actually leveled off over the past year, the bigger picture certainly looks a lot brighter than many feared when the pandemic took hold there. 18 months ago.
IHG continues to carry out hotels
While statistics can be useful in isolation, it might also be useful to see some concrete examples of IHG projects that have been successfully completed in recent months. There was InterContinental Baku, for example, which represented the Azerbaijani debut of the world’s largest luxury hotel brand. The Voco brand has also been exceptionally active, launching Voco Milan – Fiere, a 280-key property with its own convention center, and Voco St Augustine – Historic Area, a 50-room development characterized by high-end amenities and a hushed atmosphere in the Sunshine State, among others.
Additionally, the company’s pipeline continues to be replenished with new projects as existing projects wind up and throw over their doors. Some of the more notable additions to the TOPHOTELPROJECTS construction database in recent times include the InterContinental Resort Amma, Canj – Montenegro, a spectacular coastal retreat destined for a scenic location near Dubrovnik, and Regent Kyoto, who will share his address with one of the most famous restaurants in Japan.
A permanent commitment to development
In summary, IHG is always supporting new hotel projects and has in fact increased the number of projects it is working on since Covid19 spread like wildfire in early 2020. Its activity levels have remained fairly constant throughout over the past year, which suggests the company is looking at long-term development rather than rethinking its plans every time a negative stock scares the markets.
As more people get vaccinated – and healthcare professionals discover better ways to treat the most severely affected patients – there is growing confidence that the global hospitality industry will eventually shrink. fully recover from the coronavirus, which would certainly be a welcome relief for IHG and justify management’s decision to continue investing in its pipeline.
See you on TOPHOTELNEWS on Wednesday, November 3, 2021 for the next installment in the series – Covid Q4 2021 Development Update: Hyatt Hotels International.