Our strategy

Our strategy for high-quality growth focuses on strengthening our diverse portfolio of differentiated brands, building scale in key markets, creating lifetime guest relationships, and delivering revenue to hotels through the lowest-cost, direct channels. Our strategy is underpinned by great technology and our proposition to third-party owners is highly competitive and drives superior returns.

We execute an asset-light strategy with a focus on the most attractive, high-growth markets and industry segments. We take a disciplined approach to capital allocation, investing for the future growth of our brands, and we ensure all of our actions are undertaken responsibly. This enables us to drive sustainable growth in our profitability and deliver superior shareholder returns over the long term.

Our family of brands is broad but targeted and reflects guest needs and occasions rather than traditional industry classifications. Whether it be an overnight getaway, a business trip, a family celebration or a once in a lifetime experience, our brands meet these needs and are supported by the world's largest loyalty programme, IHG® Rewards Club.

IHG has leading scale in some of the industry’s most attractive segments - from the world's largest luxury hotel brand, InterContinental® Hotels & Resorts, and our leading boutique presence with Kimpton® Hotels & Restaurants and Hotel Indigo®, to the world's largest hotel brand with the Holiday Inn® Brand Family.

Winning Model diagram

Value
creation

Superior
shareholder returns

Winning model

  • Preferred brands delivered through our people
  • Build and leverage scale
  • Strong brand portfolio & loyalty programme
  • Effective channel management
  • Superior owner proposition

Targeted Portfolio

We operate in the most attractive markets for IHG and in the highest opportunity segments based on guests' occasion needs, with an asset-light business model franchising and managing hotels rather than owning them.

10
Priority markets: US, Middle East, Germany, UK, Canada, Greater China, India, Russia and CIS, Mexico and Indonesia.
Our priority markets represent
87%
of the IHG System and
89%
of the IHG pipeline

Disciplined execution

We recognise that successful delivery of our strategy for high-quality growth requires Disciplined Execution. We prioritise investment in our technology platforms and our people, as well as delivering operational efficiencies.

Whilst doing business responsibly

  • The Winning Model is our framework for delivering superior value creation through our brands, our people and our systems.
  • We operate a Targeted Portfolio, focusing on the most attractive markets for IHG and in the highest opportunity segments, with an asset-light business model.
  • Through Disciplined Execution we prioritise investment in our technology platforms and our people, as well as delivering operational efficiencies.
  • A commitment to operating our business responsibly underpins our entire strategy.

Measuring our success

We measure our performance with a set of carefully selected key performance indicators (KPIs), which monitor our success in achieving our strategy and delivering high-quality growth.

View our KPIs PDF 0.74Mb

How we drive demand

Scale

Nearly 5,200 hotels and almost 770,000 guest rooms in almost 100 countries

Brand portfolio

12 hotel brands well known and loved by guests around the world

IHG® Rewards Club

More than 100 million enrolled members

Web/Mobile

Mobile friendly branded websites, offering almost 90 languages in total 

Your Rate

Exclusive rates for IHG Rewards Club members when they book direct

75% rooms revenue delivery*

Food and Beverage

Non-rooms revenue, the majority of which is F&B, contributed approximately 15% of total gross revenues for IHG in 2016

Reservation system

9 global call centres around the world, covering 13 languages

Revenue Management

World class systems

Sales force

Global sales force of nearly 18,000

System Fund

Annual fund to maintain marketing and systems that generate demand for our hotels

*Definition: This figure relates to rooms revenue delivered to hotels through bookings made directly with IHG, bookings by IHG Rewards Club members made directly with hotels, and bookings made via Online Travel Agencies and the Global Distribution System.