This week, IHG reported its 2019 Preliminary Results, including net system size growth of 5.6 percent1, the strongest in over a decade with 65,000 room additions. As part of its focus on the long-term health of established brands, the company removed 18,000 rooms from its portfolio, which now totals 884,000 globally.
“Our performance in 2019 reflects the continued successful execution of our strategy, with the investments we’re making in our brands, owner offer, and enterprise capabilities accelerating net room openings and supporting sustainable long-term growth,” said Keith Barr, CEO of IHG. “These investments are being funded by our group-wide efficiency program, which is on track to deliver $125 million of annual savings, with the majority already realized and being reinvested across the business.”
In 2019, IHG signed 98,000 rooms (down 1 percent year-over-year), bringing its total pipeline to 283,000. On the brand level, Holiday Inn opened more than 13,000 rooms and reported the best full-year performance for the brand in the company’s history. The Holiday Inn Express portfolio has new guestroom and public space designs that are active or in the works across 1,600 hotels. IHG’s avid brand has 10 properties open and 80 additional hotels under construction or with planning approved.
On the upscale and luxury side, Kimpton signed 11 deals in 2019, growing its portfolio of combined open and pipeline hotels to nearly 100. Crowne Plaza launched six flagship properties in key cities with new room and public space designs. IHG signed 33 voco hotels across 16 countries since the upscale brand launched in 2018 and plans to further expand its global portfolio, which includes 12 open locations. Additionally, Six Senses has signed 10 properties since IHG acquired luxury hotel, resort, and spa operator last February, bringing the brand’s total open properties to 18.
“Led by strong demand for our established brands, we opened a record number of rooms, including our best-ever performance for the Holiday Inn brand family, and we increased our share of signings in key markets globally,” Barr continued. “Future rooms growth will be further supported by our newer brands, with avid, Atwell Suites, Regent, and Six Senses all attracting strong interest, and voco set to continue its global expansion in 2020, following an excellent performance in EMEAA.”
“The fundamentals of our industry remain strong, and our cash-generative, resilient fee-based model, underpinned by a commitment to operate a responsible business, gives us confidence to continue making the strategic investments that will drive our long-term growth,” Barr concluded.