InterContinental Hotels Group (IHG) has signed new multi-brand management contract with Poly Real Estate Co for the development of six new properties in locations across China. The deal will add a total of 1,773 hotel rooms to IHG’s Greater China pipeline. The six new hotels in Guangdong and Jiangxi provinces consist of three InterContinental hotels, two Crowne Plaza hotels and one Holiday Inn hotel.
“I truly believe that the reason we’ve gained our owners’ trust and confidence in China is because they love our brands, trust our extensive network, and more importantly appreciate the financial returns we have been delivering for almost three decades,” said Keith Barr, CEO of IHG Greater China. “One of our strategies to continue and even accelerate our quality growth in China is to partner with large scale and influential real estate developers like Poly Real Estate,” he added.
Poly Real Estate is one of China’s largest state-owned real estate companies, with 119 subsidiaries spreading across 35 cities nationwide. IHG was the first international hotel group and so far the only one to manage Poly Real Estate’s hotels. This new contract between the two companies has raised Poly Real Estate’s number of IHG-managed hotels from three to nine.
Song Guangju, Chair of Poly Real Estate’s board, said; “Ever since our first cooperation with IHG in 2007, our partnership has proven to be very successful. We are glad to have joined with IHG to develop hotels in China’s emerging markets. We have great confidence in IHG’s competitive advantages, and value their brands and management expertise to consistently deliver the best service.”
The six new signed hotels are the 300-room InterContinental Guangzhou Exhibition Centre (to open in 2014), the 300-room InterContinental Shunde (2015), the 300-room InterContinental Foshan Dongping (2014), the 320-room Crowne Plaza Hailing Island (2014), the 300-room Crowne Plaza Nanchang Wanli (2014), and the 253-room Holiday Inn Guangzhou Science City (2014).
These properties add to the 2007 contract signed with Poly Real Estate for the 450-room InterContinental Foshan (already open), the 350-room Crowne Plaza Chengdu Poly Garden (2011) and the 300-room Crowne Plaza Chongqing Poly Garden (2013).
A quarter of all hotel rooms that IHG opens over the next five years will be in China.
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