Outlining IHG’s vision for South West Asia, Sudeep Jain avers the company is poised for robust growth in the region.
Lipla Negi
Q: What are short-term & long-term plans for IHG in South West Asia? Do you anticipate any key challenges?
A: India is a crucial market for IHG, and we have been experiencing growth in the country for several years. At present, we operate 46 hotels in India spanning five core brands. Looking ahead, our current pipeline indicates that we will double our portfolio in the next two to three years, adding 49 hotels with over 7,600 keys to our offerings in India. We are expanding our presence in tier I and secondary cities in the country to meet the increasing demand for quality, branded accommodation.
The company plans to expand its Holiday Inn brand family in India, focusing on domestic travel, alongside premium brands such as Crowne Plaza and voco, and luxury brands such as InterContinental, as well as its premium brands.
The InterContinental brand has potential for growth due to its familiarity with both domestic and international guests, and its legacy as the largest luxury hospitality brand globally, pioneering luxury travel for 75 years. We are currently in discussions to add more InterContinental hotels to gateway cities and resort locations in India, to expand the brand’s presence in the country.
In 2023, five voco hotels were signed across key destinations, with the first in Jim Corbett set to open in H2 2024. The company is also introducing new global brands to India, including Regent Hotels and Resorts, Kimpton Hotels and Restaurants, and Vignette Collection and Garner, with the right partners and locations.
The hospitality industry faces significant challenges in attracting skilled talent, as many individuals do not view it as a viable career option. To maintain industry growth, the sector must position itself appropriately within the workforce, especially targeting millennial and Gen Z segments.
Q: What is IHG’s strategy for expanding its portfolio in India, particularly in tier II cities? Would you consider franchising for hotel operations?
A: We are committed to long-term growth in India, strategically focusing on expanding our portfolio across key cities, including secondary markets. Currently, our India portfolio comprises 46 hotels across five core brands—InterContinental, Crowne Plaza, Holiday Inn, Holiday Inn Express, and Six Senses. We are expanding across key markets, from 10 to 15 new hotel signings across our brands in 2023 alone. Holiday Inn and Holiday Inn Express, which constitute 75 per cent of our operating portfolio and majority of our pipeline, are pivotal to this strategy, especially in tier II & III cities where there is an increasing demand for quality accommodations.
IHG’s strategy in India focuses on meeting market needs and leveraging global brands. Over 80 per cent of its global portfolio is franchised, benefitting both IHG and owners. This model is best suited for mature markets with experienced owners or those favouring franchising. IHG maintains a strong managed estate in India but is open to partnering with owners on both franchise and managed models.
Q: Tell us about IHG’s efforts in sustainability and the success rate of its implementation?
A: At the core of our culture and business is the commitment to operate responsibly and sustainably. Our ‘Journey to Tomorrow’ campaign, launched in 2021, is a 10-year action plan aligned with our purpose of ‘True Hospitality for Good’ and the UN SDGs. This roadmap challenges us to promote workplace well-being, diversity, and human rights, while taking care of our planet by reducing waste, CO2 emissions, and improving millions of lives in our communities. We have implemented IHG Green Engage, an online environmental management platform, which assists our hotels in measuring, reporting, and managing energy, water, and waste usage, thereby minimising environmental impact, while reducing utility costs. We are also undertaking initiatives to eliminate single-use plastic items, implementing AI-based technology to reduce food waste, and collaborating with local stakeholders to address water sustainability issues in high-risk areas.
Q: Are there plans for a hospitality institution under IHG?
A: Our growth has been supported by a robust talent agenda. We have implemented many initiatives to develop internal talent and provide training for external talent. IHG has launched the IHG Academy in partnership with local education and community providers, to improve the employability of India’s hospitality workforce. The IHG Skills Academy is an online learning platform that offers free education, courses, and opportunities for individuals to build confidence and become employment-ready. The initiative aims to address future skilling challenges in the hospitality industry.
We also offer the ‘RISE’ programme, providing career development opportunities for women leaders aspiring to become general managers.
Q: Are you rethinking strategies in hotel design, related technology & operations to include Gen Z influences for the future?
A: IHG is investing in new technology to enhance the guest experience. Our cloud-based platform, IHG Concerto, integrates core hotel applications, allowing for seamless integration and enhancing the guest, owner, and colleague experience. Concerto allows for regular releases with new functionality at a pace and scale.
Guests can select add-ons and customise their stays, with prices adjusted based on chosen attributes. The ongoing investment
in cloud-based technology accelerates the rollout of digital enhancements, improving the guest experience and ensuring safety and security of customers.
“We are currently in discussions to add more hotels to gateway cities and resort locations in India.”
“The IHG Skills Academy is an online learning platform that offers free education, courses, and opportunities for individuals to build confidence and become employment-ready.”
- Sudeep Jain, Managing Director, South West Asia, IHG Hotels & Resorts
