The boss of IHG Hotels & Resorts is increasingly looking toward the east to expand thanks to the greater growth potential it offers.
Speaking at IHIF EMEA 2025, IHG president and CEO Elie Maalouf said the Middle East, China, India and other Asian countries are showing signs of the greatest growth potential for hoteliers.
As a result the hotel group will be looking for new opportunities while keeping an eye on the western market, the size of which means there is still money to be made.
Maalouf said: “We’re always going to be very strong in North America and Europe. The base of business is enormous, the economies are huge and its population while not growing as much is very good economically.
“Overall it’s very stable and it’s a very large base. Even a little bit of growth on a very large base is very useful plus the destinations are irreplaceable; in Europe there are places like Berlin Paris, Rome, Athens and Budapest.
“Everybody in the world wants to come to these destinations; there’s nothing equal in terms of culture, climate and cuisine.
“North America is an irreplaceable destination for business, finance, innovation and technology.
“But realistically from a percentage point of view growth is moving east of Europe. The Middle East, South East Asia, India, China and the rest of Asia as a percentage: that’s what is growing.”
Maalouf said the eastern opportunities vary according to each country, adding that Japan stands out as an opportunity as just 5 per cent of the hotels in the market are internationally branded.
He said: “International travellers like international brands so we have a huge runway in conversions in Japan. 100% of our openings in Japan last year were conversions.”
Meanwhile, he said India’s size and untapped potential make it an attractive market, adding: “India is a continent, not a country. It’s got 1.4 billion people, strong GDP growth and strong middle class growth. We’ve got 50 hotels open in India and another 50 in development and we’re going to double or triple.
“India is on a similar trajectory to China where we inaugurated our 800th hotel last year and have another 600 under development.”
Maalouf added there was a record number of openings and signings in China last year, which no doubt helped drive a strong set of results for the company in 2024, and predicted that 2025 should be even better.
“We’ll always be very strong in Europe and North America but we’re very focused on the East where we think the percentage rates are higher,” he said.
Maalouf said that IHG remained focused on owner returns with the brands designed to help maximise them, adding: “Everything in the brand is designed for efficiency, effectiveness, low operating cost and low labour cost.”
Maalouf denied that the group was planning to charge for standard elements of the hotel experience, such as free wifi or early or late check in or out.
But he added: “We will charge more for a higher floor, more for a bigger room, more for a connected room … things that guests see value in.
“We’re here to create value for guests, drive returns for owners and grow the industry for everybody.”
And with 1.5 billion people predicted to join the global middle class over the next decade, Maalouf is confident that there are plenty of opportunities for this growth.
He said: “That middle class will start to travel and once it starts to travel we’re going to be there with our Holiday Inn or Holiday Express … our brands that mean everyday travel.”
Maalouf added the world’s super rich, who have also been growing in number, will remain a vital part of IHG’s future as they power the hotelier’s upper luxury brands.
“There are people who are unconstrained by price and if you deliver the right experience, they have no limit to what they will pay,” he said.
“It’s a generation around the world that are wealthier and healthier than any previous generation and they’re willing to travel.”