We predominantly franchise our brands to, and manage hotels on behalf of, third-party hotel owners. Our asset-light strategy enables us to grow our business while generating high returns on invested capital.
We franchise and manage hotels depending largely on market maturity, owner preference and, in certain cases, the particular brand. For example, in the US, a mature market, we operate a largely franchised business. By contrast, in Greater China, an emerging market, we operate a predominantly managed business where we are responsible for operating hotels on behalf of our third-party hotel owners. The business model is adapted by market as necessary.
In a few instances, we also own hotels through recyclable investments in order to drive the growth of our brands and to expand our presence in priority markets. The key differences between our three main models are summarised below.
|Employees||Brand ownership, marketing and distribution|
|Franchised||Third party||Low||Third party||IHG|
|Managed||Third party||Low||IHG and third party|
|Owned and leased||IHG||High||IHG|
Last updated 20 October 2015