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IHG Is Growing in Greater China

Alan Woinski
February 9th, 2023 at 7:43 AM EST

Skift Take

  • STR reported China hotel RevPAR data for the week ended February 4th. China hotel RevPAR was up 35.6% year over year, despite a tough comp on Chinese New Year timing.
  • InterContinental Hotels Group announced the recent signings of Crowne Plaza Shanghai Snow World and Shanghai Snow World Hotel, Vignette Collection. This is the first Vignette Collection hotel in Greater China.
  • Macau’s Court of First Instance has officially declared the failed luxury hotel, THE 13, as bankrupt.

STR reported China hotel RevPAR data for the week ended February 4th. China hotel RevPAR was up 35.6% year over year, despite a tough comp on Chinese New Year timing (Feb 1, 2022 versus January 22, 2023). When compared with the same week in 2019 (CNY being on February 5), hotel RevPAR was up 30.2%.

InterContinental Hotels Group announced the recent signings of Crowne Plaza Shanghai Snow World and Shanghai Snow World Hotel, Vignette Collection. This is the first Vignette Collection hotel in Greater China. The hotels are part of the Shanghai Yaoxue Snow World Complex, an integrated sports-entertainment-tourism resort with the world’s biggest alpine-themed indoor ski park, which is expected to become a major tourist destination in Shanghai after opening. IHG said the signings demonstrate their long-term commitment to the China market, closely cooperating with owners and accelerating brand expansion, in line with the market’s national and regional development policies. The two signed hotels are in the downtown commercial center of Lin-gang New Town. Scheduled to open in the first half of 2024, the two hotels are positioned as a luxury & boutique and premium resort hotel, respectively, in the project area. There are over 270 rooms in seven variations in Shanghai Snow World Hotel, Vignette Collection and 375 rooms in seven variations in the Crowne Plaza Shanghai Snow World. With the launch of Vignette Collection, IHG will have 12 of 18 brands in operation in China, covering luxury & lifestyle, premium and essential segments. IHG reached the milestone of its six hundredth hotel opening in Greater China, up from 500 in just one and a half years. They now have 618 hotels and another 474 in the pipeline, with a total footprint of over 1,000 hotels, reaching more than 200 cities.

Macau’s Court of First Instance has officially declared the failed luxury hotel, THE 13, as bankrupt. The ruling comes some 20 months after parent company South Shore Holdings applied to the Macau court for voluntary liquidation of its wholly-owned subsidiary New Concordia Hotel Limited, the sole beneficial owner of THE 13 Hotel, amid increasing pressure from its lenders. It also comes as South Shore is officially delisted from the Hong Kong Exchange today, a mercy killing after the stock failed to trade for the past 18 months. The court gave the company 60 days to settle its debts under the Civil Procedure Code. Long time chairman Peter Coker Jr had stepped down from the company in October 2022. He was arrested in Thailand in January after being charged by the US Department of Justice with stock market manipulation. Coker was just one of a long line of colorful characters involved with this hotel starting with the one who came up with this bright idea, Stephen Hung. He had envisioned an uber-luxury hotel with space for 66 VIP gambling tables aimed at capitalizing on Macau’s booming VIP segment of the early 2010s. The problem is the hotel ran into a series of funding and construction delays which kept it from opening until September 2018 with no gaming and a number of rooms unfinished. By then the Chinese government had already begun a massive crackdown on VIPs and the junket business in the casinos.

The Macau Government Tourism Office claims less than 5% of visitors to Macau are there specifically to gamble, describing the city’s image as having changed dramatically. They claim 85% of the visitors to Macau are young people aged between 18 and 35, mostly women, and their spending is mostly on shopping and dining. Before the pandemic, the total spending of visitors to Macau, excluding gambling, was MOP64 billion. In 2019, gross gambling revenue was MOP293 billion. The MGTO also said they set aside a budget of MOP180 million to subsidize tour groups with the target groups including mainland China, Taiwan and international tour groups.

CBRE said the Bussleton Beach Resort in Bussleton Western Australia has been listed for sale by local vendors exiting a long-term timeshare arrangement, offering an opportunity for redevelopment of the 1.7ha Marine Terrace site. The original resort development built in the early 80’s has 208 meters of coastal frontage with four direct points to Busselton’s Geographe Bay and is located 4km from the Busselton Jetty and Town Centre. The resort comprises 32 two- and three-bedroom self-contained villas with a kitchen, living and dining areas, car, caravan and boat parking. Leisure amenities on the property include tennis, squash, basketball courts as well as a mini-putting and bowling green, an outdoor heated pool and spa and a gymnasium and sauna. CBRE is managing the sale via an Expressions of Interest campaign closing March 9, 2023. CBRE said the recent opening of the Margaret River-Busselton Airport linking the Southwest to the East Coast of Australia in April 2022 has cemented the region as a global tourist destination.

Rodger Powell has been appointed by the IHG Owners Association as the Middle East, Africa and Asia representative to its Global Board of Directors. Powell currently represents a range of IHG hotels across Australia, New Zealand and the Pacific and will represent hotel owners in the MEAA region, one of the fastest-growing regions for IHG. Rodger established Tourism & Hospitality Services Australasia in 2005 to maximize the potential and performance of tourism assets.

NH Collection Dubai The Palm, a new build 532 key luxury hotel on the trunk of the Palm Jumeirah, has opened its doors, representing the debut of the NH Collection brand in the UAE and the Middle East. The property has direct access to West Palm Beach and features 226 hotel guest rooms and suites in addition to 306 studios and apartments across 11 room categories. Higher room categories include the Premium Sea View Room, the One Bedroom Sea View Suite, and Superior One Bedroom Sea View Apartment. The property offers captivating views of the Dubai Marina skyline and Arabian Gulf and exclusive access to the NH Collection Premium Lounge. The property has five dining venues and more amenities including the NH Kids’ Club. The hotel will also soon launch its own beach club adjacent to the hotel on West Palm Beach. The new property is owned by Seven Tides, luxury real estate and hospitality developers that operate a collection of distinguished properties in the UAE and UK.

Conrad Cairo Hotel has announced unique renovations that meet guests’ expectations, what they say will guarantee them a special guest experience and an unforgettable time, with modern style and a combination of luxury and comfort. The strategy for Conrad Cairo is to expand the services provided to accommodate a larger number of guests, and to continue translating the idea of tourism pleasure into reality, ensuring the provision of a distinguished lifestyle, not just accommodation.

Personnel Move

Phuket Hotels Association has reappointed Bjorn Courage as president. The Association represents 80 of the island’s top hotels and resorts, comprising just over 12,000 rooms and 25,000 employees. The Association has reappointed its senior leadership team, led by Courage. Bjorn is GM of the InterContinental Phuket Resort. As for the rest of the Association, Brett Wilson, GM of the Pullman Phuket Arcadia Naithon Beach, was named as Treasurer and Daniel Meury, GM of the Andara Resort & Hotels, was re-elected as Secretary.

Alan Woinski
February 9th, 2023 at 7:43 AM EST

Companies: CBRE Hotels, Conrad Hotels & Resorts, Hilton Hotels & Resorts, IHG Hotels & Resorts, Minor Hotels, NH Collection, Vignette Collection

Locations: Australia, Cairo, China, Dubai, Macau, Phuket, Shanghai

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