International hospitality chain will build 239 more properties to cover 130 cities

Having become the international hospitality group with the largest number of hotels in China in 2016 - 292 properties in total - Inter-Continental Hotels Group plans to continue to advance its position by almost doubling its presence in the country, the firm announced on Tuesday.

The group, headquartered in Denham in Britain, has 239 more properties in the pipeline, 82 of which were signed for in 2016, the highest number of properties since the group first established itself as one of the first foreign hospitality groups in China, said Kenneth Macpherson, chief executive officer of IHG China.

Among those in the pipeline, 95 will be Holiday Inn Express - the most among the seven brands operated by IHG in more than 130 cities in China.

The mid-priced chain is targeted at the country's burgeoning middle-class who have an unprecedented need for affordable rooms while traveling.

It's the "fabulous combination" of brands - ranging from Inter-Continental in the luxury segment to Indigo, a chic boutique chain - that has helped IHG to enjoy strong performance in China, if not all over the globe, Macpherson noted.

IHG China achieved 2.2 percent growth in terms of revenue per available room, or RevPAR, in 2016, 0.4 percent higher than the global average. Properties in China's first-tier cities posted even stronger RevPAR growth, at 6.3 percent.

"The market here is very polarized," Macpherson said at a media briefing in Shanghai. While some regions continue to enjoy the "China speed" of growth, others are in a transitional period as the country's general economy slows down.

Macpherson noted that one of the key challenges to driving robust growth is achieving positive results for both guests and hotels' owners, whose interests are usually at odds.

Since March 1, the company has offered Your Rate through its IHG Rewards Club in China, an exclusive rate offered to club members when they book directly from its websites or mobile applications.

First rolled out in North America in May, and then in Europe and the Middle East, the program has pushed the group's membership up by 16 percent in seven months, making it the world's largest hotel loyalty club, with more than 100 million members worldwide.

China currently has 7 million members in the club, and the launch of the Your Rate program is expected to increase enrollments.

The company also announced it will introduce Kimpton Hotels & Restaurants to China, bringing in the largest boutique hotel chain in the United States, acquired by IHG in 2014. But it is still looking for partners familiar with the domestic luxury hospitality industry.

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