Holiday Inn owner plans new chain targeting 500 sites
The parent group of Holiday Inn is planning to launch a new three-star hotel chain, with the aim of opening 500 sites over the next decade.
InterContinental Hotel Group (IHG) said it would look to convert existing midscale hotels into the new chain, the name of which has not been revealed.
The group does not own any hotels, instead receiving franchising, leasing, and management fees. It said that conversions had represented 40% of its signings and openings over the last six months.
IHG added that it expects the new brand will grow to an estate of more than 1,000 hotels over the next 20 years.
Elie Maalouf, chief executive officer of IHG, said the company’s aim is to become the first choice for guests and owners in the midscale segment of the market.
He also said that over 100 hotel brands had already expressed “definitive interest” in the new brand.
This comes as the group released its results for the half year to the end of June, during which it recorded a 24% year-on-year increase in revenue to $2.2bn (£1.57bn). This resulted in a 62% year-on-year increase in operating profit to $584m (£458m).
IHG currently operates over 6,000 hotels across 18 brands in over 100 countries, and says it has a further 1,900 sites in the pipeline internationally.