IHG'S Indian Summer

InterContinental Hotel Group has its eyes firmly set on expansion across the Indian market. Kenneth Macpherson, CEO,EMEAAandVivekBhalla, Regional Vice President,SWAtellGurmeetSachdevthat they are bullish about the immense potential it offers, particularly in themidscalesegment.

How big is the Indian market for Inter-Continental Hotel Group (IHG), especially when compared to the rest of the world? How has the market grown in the last few years?

Kenneth Macpherson (KM): India is a very exciting market for IHG. Not only is it one of the world’s fastest-growing economies in 2018, with a growth rate of 7.4 per cent, but the country’s medium-term prospects for the hospitality sector also remain positive. IHG is currently on a growth curve in the country with strong results across the total revenue, MICE and Food & Beverage. There has been steady growth in the travel and tourism sector in India, and in recent years, we have seen a shift in the Indian hospitality landscape to focus on quality midscale hotels. This is largely in response to the rising middle class and a significant increase in domestic travel, pan-India. In line with market needs, we have ambitious growth plans for our midscale brands, Holiday Inn and Holiday Inn Express.

We currently have 12 Holiday Inn hotels and six Holiday Inn Express hotels open across major metros and secondary cities, and close to 85% of our development pipeline (going by the number of hotels) in the country are Holiday Inn and Holiday Inn Express hotels, which are expected to open in the next three to five years. There has been a significant increase in domestic travel in India, which has created a demand for quality,branded accommodation across markets, including tier-one and tier-2 cities.