TRENDING
IHG Hotels & Resorts ’ global pipeline .
H : What makes Germany one of Holiday Inn Express ’ top markets in Europe ? Which other market in Europe are you looking to expand into ? SA : Germany is one of IHG ’ s key strategic priority markets and is Holiday Inn Express ’ second-largest market ( after the U . K .) with 44 open hotels and 21 new hotels in the pipeline . We also opened the first Holiday Inn Express & Suites in Germany at the end of last year in Potsdam .
IHG ’ s growth in Germany has been driven through a strategic focus on Multiple Development Agreement deals with selected partners executed by a local growth team who have a deep understanding of the lease-driven property market .
Holiday Inn Express currently operates in 20 European markets and other key markets include the U . K ., France , and Russia . Last year , we opened our first Holiday Inn Express in Kazakhstan and in Austria and this year we will continue to launch in new markets such as Georgia and Corsica in France .
H : Can you elaborate on Holiday Inn Express ’ success in China ? SA : Franchising helps Holiday Inn Express accelerate the signing volume and accelerate growth of the brand footprint in China .
It will take some time for the hotel market to fully recover [ from COVID ]. If we take a long-term view , we are still excited and optimistic about the prospect of China ’ s midrange hotel market . The size of China ’ s middle class will continue to grow , the government ’ s policy guidance on promoting consumption and stimulating economic growth
The Holiday Inn Express Dusseldorf Hauptbahnhof , Germany
will continue to deepen , and various strategies for transportation network construction and regional development will continue to be promoted . These are important factors to promote demand-side growth . Especially in the vast second , third and fourth-tier cities and scenic spots , mid-range hotels will have great prospects for a long time .
H : Which new market are you concentrating on to replicate China ’ s success model ? SA : The brand continues to attract hotel owners as it expands to new markets around the world . For example , we ’ ve recently just signed our first property in Japan , the world ’ s third-largest travel market .
H : How much growth is coming through conversion and what are you doing to make Holiday Inn Express a more desirable conversion product ?
SA : Since 2017 , Holiday Inn Express signings have predominantly been new builds . Our strategy is to continue this trend while being opportunistic in our ability to convert existing hotels in locations where new development isn ’ t deemed to be achievable in the near- to mid-term .
H : How are supply chain challenges impacting development and how is IHG addressing this as best they can ? SA : Supply chain constraints are a global issue , and everyone in the industry is facing similar challenges . Every aspect of the global supply chain has been affected , from electronic components to lumber , delaying both renovations and new construction . We have been working with our partners across all aspects of the supply chain to find the right solutions for our hotels .
We know the key is to think ahead , we ’ ve learned that a “ just in time