MEDIA CENTRE - Events

IHG Development Event, London (06.24)

Philip attended the annual IHG Development Event and brought back the following take-away nuggets:

• In the previous 12 months, IHG opened one hotel per month across the UK & Ireland.
• Some HIEX Urban concept deals have been signed since their launch last year (whereby the bedroom is smaller). Public area space updated concept a current project at Windsor HIEX.
• HI to launch a new logo.
• Indigo is enjoying lots of traction and recently launched a new marketing campaign.
• &Suites, the add-on aparthotel brand to other hotel brands, is showing signs of market appeal (suitable for dual-brand projects that desire an aparthotel component).
• Some new builds are opening, mostly conversions.
• New brands (Garner, Voco, Vignette) are to be accelerated. These are conversion brands and generate a lot of interest because of their speed to market with least disruption to business within a property.
• Big data – IHG buy in 25m data points from EE to find out where people go and for how long. They overlay this ‘demand’ data on to STR ‘supply and pipeline data’ and thereby identify geo-location-led market gaps and opportunities. No other hotel company uses the same tech.
• RGI across the UK&I portfolio was shown to be at a very healthy 104 and their PGI (Profit Generation Index) was also high.
• 55% of total room night demand comes from IHG loyalty members, who also spend more within the hotels and are much cheaper to market to.
• Advertising and brand placement strategies have underpinned such strong performance. For example, IHG sponsor Six Nations Rugby and the IHG brand is very prominent on TV over the try-line on pitch.
• HIEX Bicester considered one of best in brand in UK.
• Garner discussion – a new conversion brand, created on the back of Voco’s success. Mid-market brand launched only six months ago. It complements HIEX. Competitor brands include Spark and Four Points Express. Benefits include lower PIP compared to HIEX. Each Garner will be different and could be converted to brand in 3 months (typically 6m for other brands).
• Candlewood, below Staybridge, mid-market aparthotel, dual-brand potential, keen to rollout in UK&I.

Many thanks to the IHG teams for their presentations and for sharing such good news with us, and for hosting in their majestic Kimpton Fitzroy London.