IHG, which operates brands including Intercontinental, Holiday Inn, Crowne Plaza, Staybridge Suites and Candlewood Suites, said an era of ‘unprecedented opportunity’ is coming for the hotel industry.The group expects the named regions and countries to grow rapidly with shifting populations. It also predicted heavy investment in infrastructure, GDP growth and a rise in business travel.
Demand for larger hotels is expected to outstrip demand for non-branded hotels by a factor of three.
IHG said it expects the Chinese hotel room market to overtake the US, which is currently the world’s largest, in 2025 and become twice the current US size by 2039.
Rising GDP in the Middle East has spurred IHG to plan 38 new hotels across the region in the next five years. The group is also aiming to treble its size in India in the next three years, opening 150 new hotels by 2020.
Speaking to financial investors and analysts in the City of London yesterday (23 November), IHG’s chief executive Andrew Cosslett said: "Hotel companies need to anticipate trends at least 10-20 years ahead and we know the world is going to be on the move like never before.
"The economic empowerment of developing countries and massive growth in business and leisure travel mean we will aim for sustained growth in what could be an era of unprecedented opportunity and sustained growth for the hotel industry.
"The other great news is that the more established markets such as Europe and the Americas continue to show good growth. This is giving us the firepower to invest, attract owners and make the most of our opportunities around the world."