Complete Property Market Updates of Singapore

April 30, 2008

IHG to launch 30 hotels over 3 years

Filed under: 1 — Propertymarketupdates @ 5:41 am

INTERCONTINENTAL Hotels & Resorts (IHG) is launching 30 new hotels – predominantly in China – over the next three years in the Asia-Pacific region, banking on strong domestic markets as well as inter-Asia travel to bolster revenue.

Five hotels and resorts are slated to open this year, of which four will be in the Chinese cities of Beijing, Qingdao, Huizhou and Dalian. The 16-storey, 337- room InterContinental Beijing Beichen, for one, is located close to the National Olympics Stadium and seeks to open its doors in June, just in time for the Olympic Games.

IHG expects to increase its portfolio of hotels in China from the current nine to 24 by 2010.

‘In Asia, there’s huge opportunity, given such strong domestic markets and strong inter-Asia markets,’ said Gary Rosen, senior vice-president of sales and marketing for IHG Asia Pacific.

He added that the Asia-Pacific operations were generally protected from the effects of the economic turmoil overseas as they were not reliant on travellers outside Asia for significant business.

Other Asia-Pacific markets that IHG is expanding into include Ho Chi Minh City, New Delhi and Melbourne, adding to the 35 hotels currently owned across the Asia-Pacific region.

For its Singapore branch, demand stems largely from South-east Asia. InterContinental Singapore reported an average occupancy rate in the high 80s.

With regard to rising costs, Mr Rosen said IHG would ‘act as a unified system’ and leverage on its various hotels to keep costs competitive when it came to managing its supply chain and logistics.

Finding quality staff to fulfil its expansion needs was also a challenge. ‘We want to make sure we continually fill our network with great people,’ added Mr Rosen.

IHG chalked up a total gross revenue of £pounds;9 billion (S$24.5 billion) for the FY2007 ended Dec 31, up 14 per cent from the previous fiscal year.

Net profit fell 43 per cent to £231 million from £405 million due to reduced property sales.

Other hotel brands owned by the group include Crowne Plaza & Resorts and Holiday Inn Hotels & Resorts.

Source : Business Times – 29 Apr 2008

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