IHG poised to secure a slice of high-end market

As China's wealthy put travel back on their to-do list following the end of the COVID-19 pandemic, United Kingdom-based IHG Hotels & Resorts' effort to tap into this modern luxury lifestyle is kicking into high gear.

The hotel giant, which operates brands including Holiday Inn and Crowne Plaza, has long seen China as a market with great potential. The group has ushered in more than 670 hotels over 48 years with hundreds more in the pipeline. Today, it's revving up luxury expansion to capitalize on growing market needs.

"As the world grows, especially in China, there's tremendous demand for luxury lifestyle. ?? ??So we've always seen that as an opportunity for us to grow in that space," said Daniel Aylmer, managing director for IHG Greater China.

Among the latest and most high-profile endorsements is its November reopening of Regent Hong Kong, an iconic establishment that opened in the lively Tsim Sha Tsui area of downtown Kowloon in 1980 before being rebranded as InterContinental Hong Kong in 2001.

Featuring in various movies, its return represents a revival of cherished memories for the people of Hong Kong, evoking nostalgia and a sense of connection to the city's rich cultural heritage.

"Unlike traditional old-school luxury, we are much more into the future direction of luxury. That's how we define it," Aylmer said.

After an extensive redesign by world-renowned architect Lo Chiwing, the establishment has turned itself into a "personal haven" where every guest can find unexpected harmony and a sense of warmth and serenity amid the bustling metropolis.

Wow factors abound; from the picture-perfect harbor view rooms and intriguing gallery space in the lobby to the vibrant steakhouse and two-Michelin-starred Cantonese restaurant as well as attentive service, all of which offer an illustration of IHG's philosophy of a luxury lifestyle that ensures a memorable stay for visitors.

"The personalization and the experience of emotion are so important for today's travelers," Aylmer said. "The basic level of having a great shower and a great bed is fine. But what you want is beyond that. It's being able to create the emotion with the consumer knowing everything is going to be okay, you're in control when you're staying in a Regent hotel or any luxury hotel with IHG, you're going to be able to relax."

In a sign of IHG's master plan to tap the potential of China's luxury lifestyle market, Regent Shanghai on the Bund will be reborn soon, with Regent Chengdu, Regent Sanya Haitang Bay and Regent Shenzhen all in the pipeline. These efforts, coupled with the introduction of Kimpton Hotels and Vignette Collection in gateway cities, are set to reap the benefits of splashing out on vacations and reconnections of business networks.

According to IHG's latest trading update, the group's revenue per available room — a key industry metric — in China jumped 43.2 percent in the third quarter compared to the same period in 2022. On a broader scope, the hotel group, which runs 19 brands globally, said it expects to close out the year with a "very strong" financial performance with China's returning to pre-pandemic levels.

In China, where IHG has raised its standing as one of the largest operators of luxury and lifestyle hotels, Aylmer shows every confidence in business growth, given the group's solid footprint over the decades and its understanding of the preferences of today's luxury consumers.

But it's not IHG's ambition to be "the largest", he said. "It is to be the best with each one of those brands to make sure that it relates to China consumers and is successful."