IHG CEOs are targeting indie hotels in technology-driven expansions – exclusive interviews
As CEO and CEO of IHG Hotels & ResortsElie Maalouf has the levers of the industry, shaped by technology, loyalty economics, and pulling the gravity of major brands.
“There has always been a mix of local and global global hospitality, but the game has changed,” says Maalouf. “Today, players in the region you want to visit need access to capital, technology and distribution networks that only global brands can offer.”
Its decision, dealing with over 119 properties for franchises to IHG machines, challenges a bigger story about what’s going on throughout Europe’s intensely independent hospitality scene.
In a year and a half of the role, Maalouf sat in Skift, Americas Lodging Investment Summit (Alice) Los Angeles. The CEO shows the dynamics of driving more independents to IHG, how Tech Investments makes IHG competitive, and why he is excited about the possibilities of hotel development in Japan (from midscale to luxury). I’ve covered it.
Europe is a key market for global hotel groups like IHG. According to the branding, only about 40% of the hotels there’s stock Co-star’s str.
“We see a great opportunity for Europe to grow, where independent hotels and regional chains recognize that competition in today’s digital landscape is extremely expensive,” Maalouf said. I say it.
Rather than trying to buy IHG’s hard assets, the group relies on a franchise-heavy model that emphasizes conversions such as Novum transactions.
Novum’s decision wasn’t just about gaining access to IHG’s global distribution network. It was also about exploiting technological ecosystems that would have been prohibitively expensive to build independently.
In other words, the European hotel landscape requires a large investment in digital infrastructure. “It’s an investment that makes it increasingly difficult for local hotel groups to carry their shoulders on their own,” Maalouf said.
“How to interact with the travel experience from start to finish has become very digital,” explained Maalouf. “We hope to be digitally researched and booked. We hope to be digitally checking in and out, and asking for digital service at our hotel.”
Software investment is one of the ways IHG has sought to be an attractive partner for independent hotel owners who are feeling the pressure of rising technology costs and changing consumer expectations.
Multi-year shift to cloud-based Amadeus-run Central reservation system He was a well-documented ex-father. Since then, the Hotel Group has been revamping its high-tech stack.
IHGs around the world are rolling out what Maalouf calls the “industry-leading guest reservation system.” This software allows all hotels to sell rooms and specific “attributes” – Floor, scenery, experience – Before guests walk through the lobby.
Maalouf said it is deploying an AI-driven system that flags potential guest issues and provides real-time assessment of guest feedback before becoming TripAdvisor feed.
“When I waited for an investigation after check-out, I lost the opportunity to stay,” he said. “The key is to fix the issue while the guests are still inside the company.”
Already deployed to nearly 3,500 properties, the new AI-powered revenue management system helps optimize pricing in real time. The company has re-enacted its content management system to enable multi-language translation and delivery of rich media content.
IHG is tweaking franchisees towards renovations by providing data on updates that have the biggest impact on guest satisfaction and revenue.
Maintaining consistent quality across the property is important for businesses that host around 1 million guests per night.
“Even if we are 99.9% accurate in providing customer service, it’s still a thousand people who are not satisfied accurately,” points out Maalouf.
In China, IHG has experimented with robots in hundreds of hotels by using it to deliver towels and drinks. Maalouf quickly positioned this as a practical solution to labor shortages.
The company’s loyalty program, IHG One Rewards, is another pillar of Maalouf’s vision. When he took over, IHG had fallen behind the competitors in the points war.
Skift pointed out that 10 years ago, IHG had the most members of any group’s loyalty program, but since then (and before Maalouf’s tenure) it had fallen third behind Marriott and Hilton. As of late 2024, the company was on track to attract around 145 million members by the end of the year, while Marriott and Hilton each had more than 200 million people.
“What really matters is the number of members per room,” Maalouf said. “Some hotel companies have fewer rooms than us. Some companies have more rooms. For a fair comparison, we need to look at the percentage of members per room. What’s more, we have to do is look at the IHG 1 The two rewards are growing quickly with everyone.”
“It’s not just the number of members you have that matter. What’s the number of members you actually have,” the CEO said.
Almost 70% of nights in “America” IHG rooms come from loyalty members, who are currently up 10% points since 2019 (global 60%). The level is peer companies, which are based on peer companies. It’s almost comparable to what I report. Percentage is important. Direct bookings by loyalty members avoid the fees charged by online travel agents.
According to Maalouf, the benefits of IHG’s Loyalty Program’s recent memberships are debt-based on personalizations with Tech. This program allows guests Tweak their perks In a way that others don’t.
This year’s update IHG credit cards are JPMorgan Chaseset up to run 2036 and solidify your strategy. Credit card fees recognized within IHG’s operating profit will more than triple by 2028, IHG said.
IHG’s growth engine is not all luxury luxury. Of the 19 brands, Holiday Inn Express is the company’s Golden Goose. The brand conquered the mid-sized upper segment with ruthless efficiency. With over 3,200 hotels worldwide, it is a reliable, unadorable bet for travelers and a money maker for franchisees.
“It’s a brand that resonates across the market because it offers a consistent, high-quality experience at a functioning price,” says Maalouf.
That said, IHG’s luxury and lifestyle brands have been prominently surged, accounting for 20% of the group’s pipeline. The company’s Six Senses, Regent and Kimpton brands continue to set up expensive bars with new projects at sought destinations such as Santa Monica, Telluride and the Maldives.
With its high-end dining and an oceanfront spa, Regent Santa Monica Beach is a prime example of IHG pushing into a super luxurious space, Maalouf said.
Meanwhile, six senses have expanded in the Americas and Europe, taking advantage of the growing demand for sustainable, experience-driven luxury.
“We doubled our luxury and lifestyle knowing that our guests today wanted more than just a hotel.
Exhibit A: If the US is the biggest market playground for IHG, Japan is a sleeping giant for expansion. The country’s hotel industry is historically independent, with only a small percentage of the total inventory associated with global brands.
“Japan has been a domestically driven market for a long time, but that’s changing,” says Maalouf. “There’s a lot of room for brand growth and we’re ready to bring our solutions to the table.”
The company recently expanded its Garner brand to Japan, leveraging a mid-scale niche that international players are not being served.
Maalouf starts his days with training at 5am (two outdoor runs per week if schedules are allowed). He joked that maintaining health is very similar to brand management. Consistency is important.
Running IHG is not a desk job, so he tries to exercise even on the road. Over the past few weeks he has traveled from Shanghai to Hong Kong, Tokyo and Singapore, inspected his property, met with local teams and spoke at events.
Maalouf said he is still learning given that he has been in the hotel industry for 10 years. He previously worked at Weyerhaeuser Real Estate Company and as an advisor to McKinsey.
“I learn something every day in this business. It’s multiple things in a day,” Maalouf recalls. “It’s something we should learn from our colleagues, from our owners, from our journalists, and from that, and I get a lot of life and inspiration from it. It’s the process of knowing everything about this business.”
IHG’s Maalouf goals are similar. He hopes the team will evolve according to the latest trends and intelligence.
“Our job is to create long-term value for our guests, owners and partners,” says Maalouf. “The industry is changing and we plan to lead that change.”
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What am I looking at? Hotel Performance and Short-Term Rental Sector Stocks ST200. The index includes companies that are open to the global market, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.
