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How our business works

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.

Business model Hotel
ownership
IHG capital
intensity
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

Download our full Business Model (PDF 0.07Mb)

Last updated 23 February 2016

Find out more about our brands

IHG logo

  • InterContinental Hotel & Resort logo
  • Kimpton logo
  • Hualuxe Hotels and Resorts logo
  • Holiday Inn logo
  • Holiday Inn Express logo
  • Staybridge Suites logo
  • Hotel Indigo logo
  • Even Hotels logo
  • Crowne Plaza logo
  • Holiday Inn Club Vacations logo
  • Holiday Inn Resort logo
  • Candlewood Suites logo

*IHG® Rewards Club not applicable to Kimpton® Hotels & Restaurants; to be included at a future date.