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D E V E L O P M E N T

Q U A R T E R L Y IHG® Europe’s Development, Design & Openings magazine

ISSUE

Food for thought Introducing IHG’s new approach to Restaurants & Bars

If you build it, they will come Building scale and quality in Germany

New Holiday Inn® guest room Unveiling the latest design innovation in the brand family

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The foundation to success How to run a responsible business and a profitable hotel


Lorien Hotel & Spa A Kimpton® Hotel

Your next growth opportunity IHG® is one of the world’s leading hotel companies. Our scale, experience and dedication to quality ensure that your next growth opportunity will be supported every step of the way: from signing, through the design phase, to opening and operating a successful hotel. Whether you choose to franchise with us, or opt for an IHG management agreement, the diversity of our brand portfolio allows IHG hotels to meet guest needs whatever the occasion – ultimately adding up to better returns on your investment. To find out more about developing your hotel with IHG, visit www.ihg.com/development *Data correct as at 31 March 2016

IHG® hotels host over 170 million guest nights per annum, over 740,000 rooms in over 5,000 hotels in nearly 100 countries around the world*.


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Contents Welcome to Issue Six

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Food for Thought

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The teams, tools and concepts behind IHG’s new Restaurants & Bars proposition

Introducing the New Holiday Inn® Guest Room

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Unveiling the latest element of the Holiday Inn brand family transformation

Interview with… Hubert van de Loo

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Managing Director, Foremost Group

If You Build It, They Will Come

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How IHG® is enjoying another record-breaking year in Germany

Meet… The DACH Team

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Introducing the Development team for Germany, Austria & Switzerland

Responsible Business: The Foundation to Success

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How corporate responsibility initiatives create value for owners

The Unique Value of the Owners Association

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Looking at the industry’s first and only association of its kind

Dates for your Diary

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When and where to find IHG in the coming months

Signings

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Mapping the record-breaking signings in the first half of 2016

Meet... David Kellett

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Vice President Head of Development & Investment Analysis, Europe

IHG® Foundation

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The facts and the figures for IHG’s charity

Editor-in-Chief: Catherine A. Ross Picture Editor: Rachel Fermie Contributors: Robert Shepherd | Meera Thakkar Photography: Claus Brechenmacher Reiner Baumann Photography | F9photos | Foto-Studio Hoffmann | Victoria Gibbs | Jennifer Hughes IHG | Kimpton® Hotels & Restaurants | Cris Molina | Plainview Media | Red Photographicy | Visual Eye | Vlada Z Design: Rob John | Tracey Gibbins | Geoff Turner (H&O) Print: Bob Goodchild (InnerWorkings) Cover image: Geraldine’s at Kimpton® Hotel Van Zandt For advertising enquiries, please contact europedevelopment@ihg.com


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Editor’s letter…

Welcome to Issue Six

We are now heading towards the end of this year; the first half of which has seen us achieve so much. Globally we grew RevPAR by +2% and opened a total of 17,000 rooms, up 8% year on year. We signed 244 hotels, our highest level globally since 2008, taking our total worldwide pipeline to 222,000 rooms. Closer to home, Europe also achieved +2% RevPAR growth and signed a record-breaking 24 hotels, one of the strongest results in the industry. Some of our region’s highlights include signing the first two Kimpton® hotels outside of the Americas; in Amsterdam and Paris, and signing our 100th hotel in Germany. Building scale in Germany is core to achieving our region’s quality and growth agenda and a topic we explore further on pages 16-18. In August, we announced the signing of another five hotels across three states in Germany, and this month sees the opening of the first Generation IV Holiday Inn Express® at Holiday Inn Express® Munich – City West. We caught up with the DACH development team and asked, among other things, how they have achieved two consecutive years of record signings in their market. The brands driving growth in Germany and across our region are Holiday Inn® and Holiday Inn Express which, combined, make up the largest hotel brand in the world. The last few years have seen the brand family undergo major transformation, most recently seen in the new Holiday Inn guest room. Occupying a smaller footprint, yet adding more to the guest experience, it is an impressive accomplishment for our team, who have produced yet another brand-defining design concept. You can see the first photographs of the new room design on pages 10-13, but for something a little more immersive, I urge you to visit the prototype room at IHG’s headquarters in Denham, UK. There’s nothing quite like experiencing good design in real life. This issue’s front cover is Geraldine’s restaurant at the Kimpton® Hotel Van Zandt, Austin – a great example of Restaurants &

Bars (R&B) done well. In this edition we shine a spotlight on R&B, which has long been a challenge in our industry. We have added resources and devised new concepts with a renewed emphasis on improving the owner proposition and, of course, consumer experience. Restaurants & Bars like Stock Burger Co. at Holiday Inn® Brighton – Seafront and Theo’s Simple Italian at Hotel Indigo® London – Kensington have seen excellent results from the get go and have set a high benchmark for this exciting new approach to R&B. Finally, we look at both the social, environmental and financial benefits of engaging with our responsible business programme. Energy is the second highest cost to a hotel (after staff) and we look at the hundreds of green solutions IHG® has developed to drive cost efficiencies and ultimately optimise ROI. There is, in fact, so much going on that we could make DQ much longer! However, I have recently joined a more frequent medium, Twitter, and I’d encourage you to follow me @rjshepherdIHG so we can continue to tell you about our new signings and openings. So, as we round off the year I would like to take this opportunity to thank my team for all the hard work they have put into busting those records and let’s continue this momentum into 2017. And, of course, thank you to our partners for your ongoing commitment to IHG. Wishing you all an enjoyable and successful final quarter to what has been a fantastic year.

Robert Shepherd Chief Development Officer and SVP Development, Design & Openings, Europe

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The Katharine Brasserie + Bar at KimptonÂŽ Cardinal Hotel


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Food for thought… IHG’s fresh approach to Restaurants & Bars With a number of successful new Restaurant & Bar (R&B) concepts launched, how will IHG’s new approach to food and beverage impact the industry and what will the new team, tools and concepts mean for guests and owners? Food and beverage has long been recognised as one of the most challenging aspects of the hotel business. The last decade has seen an explosion in high quality High Street dining and today’s guest has more choice than ever. Popular perception ranged from hotel dining being overpriced to inauthentic, and as Millennials increasingly seek ‘genuine’ and ‘local’ experiences, how can hotels encourage them back in the face of such pervasive competition? “Every challenge is an opportunity in disguise” IHG’s Simon Burdess, Vice President of Restaurants & Bars in Europe tells us. “IHG® has created that opportunity by investing in a new team, with new tools and new ideas. And it’s working!” In 2014, IHG enlisted a team of R&B specialists to review the company’s offering. Led by Simon, it was the beginning of a new approach to transform R&B from an amenity to a business. The transformation has been gradual, with projects like the ‘Out in Front’ breakfast – a toolkit to deliver a consistent breakfast experience – offering valuable insight. Throughout, the outcome has been clear: by focusing on quality, reliability and frontline service, both guest satisfaction and profit potential increase.

Hotels and R&B: a ‘conscious uncoupling’ One of the main takeaways is how powerful it can be to differentiate between the hotel and R&B elements. When Kimpton® Hotels & Restaurants launched in 1981, it focused on creating hotels and restaurants with entirely separate identities, operating as entirely separate businesses with different management and teams. Thirty-five years on, Kimpton has 88 restaurants and bars in 33 cities across the Americas, many of which have won prestigious awards. The Kimpton model serves as a great inspiration in the industry and Simon echoes this take on the business structure: “If you want to design a car, you don’t get a furniture designer to do it. It’s the same with restaurants and hotels.” Simon, whose career includes developing the in-store dining concept at retail giant Marks & Spencer and leading the renovation of the food hall and restaurants at Fortnum & Mason’s department store, lends a fresh perspective to R&B. “I had never worked in hotels before IHG, but I’ve put great restaurants into retail spaces.

Pacci Italian Kitchen + Bar at Kimpton® Brice Hotel

When I was at Marks & Spencer I had to convince people that this was not retail; it was food and beverage, which requires a totally different approach. If you follow the fundamental principles of good restaurant design and execution, you can put a good restaurant anywhere.” IHG has a world-renowned suite of brands in which to put those good restaurants, and one of the first steps in the R&B review process was to look at one of the company’s most famous brands; Holiday Inn®.

Optimising space and realising potential One of the main concerns with Restaurants & Bars is the space they occupy. Every square metre of a hotel is valuable, and if that space is busy at breakfast but empty for the rest of the day, the team needs to rethink how to maximise value per square metre. Holiday Inn Open Lobby was a concept in part born out of optimising space financially. Unveiled in 2012, Open Lobby is a cohesive reimagining of the lobby area. Zoned areas for work, rest and play engage guests to stay longer and the updated coffee bar experience courts both resident and non-resident spend. Guest conversion has been positive, with results showing that they have been staying in the lobbies on average an hour longer, encouraging an increase in R&B spend.1 These results have seen it become a brand standard with commitment to roll out across the entire European estate by the end of 2019. 05


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These are just some of the solutions IHG has developed to assist owners in launching enhanced R&B. One of the toughest challenges in the hotel business is deciding what concept is going to work. By utilising local market knowledge and collaborating with first-class market researchers, IHG has insights on specific operators, dining styles and pricing points. Stock Burger Co. is an excellent case in point.

Right brand, right place, right price M&C Allegra estimates the value of the UK burger market to be close to £3bn in turnover, with continued growth expected.2 With the gourmet burger sector predicted to expand the fastest, Stock Burger Co. has entered a market of high demand and high competition. This makes its success even sweeter. The first Stock Burger Co. opened in Holiday Inn Brighton – Seafront in December 2015 as a distinct R&B offer to meet the needs of hotel guests and encourage local business. It is IHG’s first ‘Concept in a Box’, designed to make roll-out as easy as possible. It includes schematic layouts of front and back of house, design hallmarks, supplier connections and marketing, training and operations manuals. ®

A casual dining restaurant and bar combo, its speciality is premium burgers, craft beer and artisan coffee. By using local suppliers, Stock Burger Co. answers the call for supply chain accountability, while reaffirming its perception as an independent

Stock Burger Co. at Holiday Inn® Brighton – Seafront

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Simon elaborates: “Open Lobby demonstrates that if we focus on the R&B experience, we can make a huge improvement in guest satisfaction and make money in all-day dining. Importantly, Open Lobby is not just plug and play. You get support throughout, from field operators assisting on-site to a menu database with guides on methods and presentation, to running a marketing campaign. It’s the whole package.”

Together, the legal team and R&B team have experience of every deal imaginable and between us we have many years of contacts to leverage. That’s a very exciting resource for IHG. ®

Simon Burdess, Vice President of Restaurants & Bars, Europe

and not a chain. Having an independent identity to Holiday Inn ensures the two aren’t competing against one another. However, is there a chance that they will become inextricably linked? Simon doesn’t think so: “Indeed Stock Burger Co. has a synergy with Holiday Inn, but you could put it in any hotel with the right demand drivers. Similarly if you have a big enough hotel with enough outlets, why wouldn’t you mix it up? By giving people options you have more opportunities to capture both in-house and local spend. If I had an InterContinental® with five outlets, would I do a Stock Burger Co. as part of those broader dining options? Yes, I would consider it.”

Since opening, Stock Burger Co. has gone from strength to strength. For the summer months, transaction levels were in line with its nearest competitor in the gourmet burger range and it has doubled the hotel’s R&B revenue year-on-year.3 Alex Pritchard, CEO at Kew Green Hotels told us: “We are delighted with Stock Burger Co. Working with IHG we have delivered a destination restaurant with an excellent food offering which has substantially increased revenues from both internal and external guests. As Stock Burger Co. matures we are looking forward to solid ROIs and are excited about adding more outlets across our portfolio.” Just weeks after opening, Stock Burger Co. swept aside the competition in the Signature Burger category at the 2016 National Burger Awards in London. “Commercially it has been


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Stock Burger Co. at Holiday Inn® Brighton – Seafront


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It’s what you know and who you know

Marco Pierre White restaurants opened in Hotel Indigo® hotels, it became clear that there was a demand for a certain dining format but a shortage of options. From that came Theo’s Simple Italian. The upscale yet accessible Italian restaurant debuted at Hotel Indigo® London – Kensington and with celebrity chef Theo Randall at the helm, it has attracted business from day one.

Building concepts like Stock Burger Co. are only possible through industry knowledge and comprehensive tools. Where these were historically outsourced to consultants, IHG has taken the model in-house. This strengthens relationships with owners and listens to their needs. When a number of

IHG has had a relationship with Theo Randall since 2006 when he opened his first restaurant, Theo Randall at the InterContinental. Whether it’s celebrity chefs or licence negotiation, the IHG team advise on key decisions. “Together, the legal team and R&B

amazing,” Simon confirms. “We have taken what was an underused space and are starting to turn it into a profitable business. It presents a better impression of the brand, it appeals to a younger audience and it comes at a competitive price to owners.”

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team have experience of every deal imaginable, whether it’s getting the right partnerships with celebrity chefs, operators, licence agreements, consultants and so on,” Simon tells us. “Between us we have many years of contacts to leverage. That’s a very exciting resource for IHG.”

“We want to give owners a product that not only brings in money, but something they are proud of. If they are happy to entertain their family and friends there, we’re doing something right. And at the end of the day, we’ve all got to eat. We might as well enjoy it while we’re doing it!”

While other hotel companies are investing in R&B resources, IHG is making its mark in terms of creating new franchise models. Ultimately the aim is to present owners with a wider choice of R&B: from burgers and beer to pan-Asian fusion, from a steak house to a Mexican bar and grill. Simon concludes:

For more information on a Restaurant & Bar concept in your hotel, contact simon.burdess@ihg.com 1. Internal IHG research. 2. M&C Allegra Food-service September 2015. 3. Kew Green.

InterContinental® New York Barclay

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By utilising local market knowledge and collaborating with first-class market researchers, IHG® has insights on specific operators, dining styles and pricing points. Simon Burdess, Vice President of Restaurants & Bars, Europe

Ashlar at Kimpton® Morrison House 07


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Introducing the new Holiday Inn guest room ®

Holiday Inn® prototype guest room at IHG® headquarters in Denham, UK


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As hotels across Europe are seeing, the Holiday Inn® Open Lobby is transforming the public area, and in the true spirit of innovation IHG® has re-imagined the Holiday Inn guest room to match the public area experience. The Holiday Inn brand family has been leading the way for over 60 years, catering for 100 million guest nights per year. With a great brand comes great responsibility and so in June, IHG unveiled a full-size prototype of the new Holiday Inn guest room at its global headquarters in the UK. Part of the ongoing Holiday Inn brand family transformation, it follows hot on the heels of the Holiday Inn Express® Next Generation public space, Generation IV guest room and, of course, the Holiday Inn Open Lobby. As with those innovations, the new guest room design has been built on a foundation of insights into what guests want and need from their stay, and what owners seek from their hotel asset. Themes included the importance of combining the contemporary with the comfortable. Somewhere spacious enough to feel clean and modern without feeling sparse. Somewhere guests can relax and work, as well as unwind and sleep. Somewhere value engineered for owners, with robust materials to avoid costly replacements.

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The joy of travel for all The Holiday Inn brand promise is to champion ‘the joy of travel for all’ and the new guest room design is an example of how IHG is keeping that promise. The fresh, modern design serves to retain existing guests and encourage new ones. The design is a continuation of the Open Lobby’s ‘home away from home’ appeal. Although the room actually occupies a smaller footprint, clever layout makes it feel larger. When Spence Wilson Jnr, grandson of Holiday Inn founder Kemmons Wilson, visited the prototype he commented: “It’s the largest smaller room I have ever seen!” Moving the sofa away from the window opens up the room, making for a more welcoming entrance. There is still plenty of room either side of the bed, and the desk space has remained, albeit more compact. Tactile materials have made it physically feel homelier, while light colours achieve a stylish and contemporary edge. And the value engineering means that it’s investible for owners.

Seeing is believing They say pictures speak a thousand words, but sometimes seeing is believing, which is why IHG is showcasing a full-size prototype of the guest room and inviting investors to come and see with their own eyes why Holiday Inn is the brand of choice for midscale hotel owners.

To arrange a visit, please contact europedevelopment@ihg.com or speak to your local Development, Design & Openings contact.

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IHG is inviting investors to visit the full-size prototype at its headquarters and see with their own eyes why Holiday Inn is the brand of choice for midscale hotel owners.

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Holiday Inn® prototype guest room at IHG® headquarters in Denham, UK

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INTER VIEW

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IHG is very good at listening and it genuinely feels like a partnership. If we have a problem, we can pick up the phone to anyone, from development to operations to sales and marketing. ®


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Interview with…

Hubert van de Loo Managing Director, Foremost Group

Hubert van de Loo is the joint Managing Director at Foremost Group, which he co-founded in 2002. In 2011, Foremost signed a Multiple Development Agreement (MDA) with IHG® with a view to reach a total portfolio size of 20 hotels. A highly experienced hotelier, Hubert has occupied senior management positions with Hilton, Sheraton, Accor and Forte Hotels in the UK and throughout Europe. We met up to discuss his career, Foremost’s growth strategy and what makes a successful partnership. When did you start working with IHG?

How has innovation of the Holiday Inn brand family been received so far?

It was in 1999, when I was operating hotels in the UK before Foremost. In approximately 2006, after Usama Dessoky and myself set up Foremost, we studied the market and identified Germany as a stable force in Europe during what was about to be a rough patch. We made absolutely the right decision and this led to us signing an MDA with IHG for 20 hotels and so far we have 11 (10 Holiday Inn Express® hotels in Germany) open and various other hotels under construction.

Innovation is always important because guest behaviours change. A redesigned lobby and dining area and new rooms with smart design features are very exciting. The brand transformation attracts a new generation of guests. It’s about appealing to new guests, but not excluding existing ones. Technology innovation is especially important. The virtual check in, the Wi-Fi speed and the mobile delivery.

What trends are you seeing in the German market?

Why have you partnered with IHG?

We hear more and more about changes in the booking landscape. Many guests book through OTAs in Germany, but what we have to offer is the actual personal experience through booking direct. By making the direct IHG booking, guests are not only buying a room, they are buying a whole experience. IHG has responded well to the challenge by continuing to work together with the OTAs to drive bookings, but carving out a space for itself with Lowest Price Promise.

IHG is very good at listening and it genuinely feels like a partnership. If we have a problem, we can pick up the phone to anyone, from development to operations to sales and marketing. A great example of this is the Holiday Inn Express Generation IV bedroom. In Germany it’s an absolute must to have doors on wardrobes in the hotel bedrooms. Both service teams and most importantly our guests request this facility; however, the original IHG design didn’t feature doors. We discussed this topic with IHG and now we have implemented this design in all our German hotels.

Your MDA is to develop Holiday Inn Express and Holiday Inn® brands. What about those brands resonates with the German market? Holiday Inn branded hotels are known all over the world for comfort, reliability and value. Holiday Inn Express has such a great mixture of efficiency and simplicity from a guest perspective, but also operationally. We deal mainly with key cities and no matter where travellers come from, they have heard of the Holiday Inn Express brand name. Not only do they know the brand, but most importantly they trust it. German guests have a great brand loyalty. Once they are on board, it doesn’t matter if it’s a TV, a car, a hotel; they will stick with a brand for better or worse. It’s the same with a company and its team members. Once you have a good team of employees, they tend to stay.

What is your growth strategy? We open hotels in key cities, mainly A and B locations. It is a strong, unwavering strategy. If another hotel brand opens in A cities, it doesn’t change our focus. We stay true to our strategy. Various other hotel brands are coming into Germany now, but we are pleased to say that we were ahead of the pack. Timing is key. For us, Germany is long term. The world can be very uncertain, but people will always want to stay in hotels!

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If you build it, they will come In August, IHG® signed its 100th hotel in Germany after two consecutive years of record-breaking signings. So how has it achieved this milestone and what does the future hold for this increasingly competitive market?

Branded is best The German hotel industry is as large as the UK in revenue terms, but is largely unbranded. Times, however, are changing. While currently 57% of hotels are unbranded, the market is seeing a clear trend towards branded hotels.3 What’s more, not only are Germans moving towards hotel brands, they are willing to pay more for their first choice.4 IHG is well positioned to take advantage of this increased appetite for brands. IHG’s growth in Germany has been unprecedented. In the last two years the company has enjoyed record-breaking signings, each smashing the previous year’s record. In the first half of this year, IHG reported almost 9% growth in comparable RevPAR in Germany5 – thanks partly to a particularly active trade fair calendar – and signed five hotels located in three federal states.

“It feels great to be out there, building the IHG name in Europe,” comments Martin Bowen, Associate Vice President of Development, DACH (Germany, Austria and Switzerland). “Our brands, our tailored leasing model, our German language documents and our locally based team are just some of the elements fuelling growth in our market. They all amount to a great investment, bringing value to guests, operators and investors.” The in-market team is something appreciated by owners. Wolfgang Gallas, Managing Director at Primestar Hospitality, one of IHG’s Multiple Development Agreement (MDA) partners agrees: “Having German speakers on site and in the market here when we need them, speeds everything up and makes dealing with IHG a pleasure. Of all the hotel companies we deal with, IHG is the easiest to work with. They understand our needs and challenges and work with us to find solutions, which means when we look at new hotel projects we always consider IHG brands first.”

Masters of midscale Of the five hotels IHG has signed in Germany in the first half of this year, four were Holiday Inn Express® hotels. The brand’s reputation as a smart model that delivers has been one of the foundations for its growth there. Wolfgang, whose Holiday Inn Express® Offenbach was IHG’s landmark 100th signing in the market, considers the brand’s appeal: “I think with Holiday Inn Express it comes down to good old fashioned German efficiency! It has such a great mixture of efficiency and simplicity from a guest perspective, but also operationally. As a limited service hotel, there is no need for full kitchen space, chefs, banqueting, conference facilities and so on. This means we have a lean staffing model, but guests still have good service. They have everything they need, without paying for amenities they’re not using.”

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Holiday Inn® Munich – City Centre

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With a suite of compelling brands, the Franchise Plus package, an expanding local team and strong MDA partnerships, IHG is well positioned to benefit from Germany’s accelerated growth and increasing appetite for branded hotels. ®

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Building scale in Germany has long been one of IHG’s priorities. Germany represents over 20% of Western Europe’s business travel activity and continues to be the strongest market on the continent.1 The overall number of overnight stays has steadily increased and, last year, climbed to record numbers.2 Reasons for this include its central Europe location, excellent infrastructure and value for money. With relatively inexpensive land and assets in city-break destinations like Berlin, Munich and Hamburg, there are ample development opportunities as demand outweighs supply. And, as the largest financial centre in continental Europe, Frankfurt benefits from the business travel and the huge global trade fairs segment.


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Holiday Inn® Munich – City Centre

Holiday Inn® Munich – City Centre


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Midscale to upper-midscale brands are the core of the German hotel landscape. Holiday Inn® and Holiday Inn Express are well positioned to reach the German consumer and, since 2011, IHG has worked hard to drive the quality of the estate. Poor quality hotels are brand dilutive and by exiting underperforming portfolios, IHG has started to reap rewards. “Our current estate is the best it has ever been. The newer hotels are delighting our guests and transforming the perception of our brands,” Martin tells us. “Plus our owners can see how dedicated we are to achieving consistent quality. Combine this with innovation like Holiday Inn Open Lobby and Holiday Inn Express Generation IV and they see IHG as the best amongst the competition.”

Tailoring solutions and building partnerships In addition to strong brands, an important part of IHG’s strategy for growth in Germany is working with MDA partners; franchise partners, developers, funds and institutional investors. MDAs allow for quicker expansion where the financing is already in place as opposed to single hotel deals. IHG has built relationships by advising and counselling partners through the development process with a more tailored approach. Programmes like Franchise Plus, which was created specifically for the German market, enables IHG to tailor capital support to a specific owner and deal. Martin continues, “We developed Franchise Plus to streamline the sometimes complex licensing process. By developing something specifically for Germany, IHG showed a great level of commitment and that leads to great partnerships. Accelerating and growing our partnerships is how we will stay ahead in the market.”

Holiday Inn® Munich – City Centre 18

Holiday Inn® Munich – City Centre

With a suite of compelling brands across all segments, the Franchise Plus package, an expanding local team and strong MDA partnerships, IHG is well positioned to benefit from Germany’s accelerated growth and increasing appetite for branded hotels.

To discuss a hotel development opportunity, email europedevelopment@ihg.com or contact your local developer. 1. GBTA Western Europe report (November 2015). 2. German National Tourist Board. 3/5. IHG press release / Hotel Analyst. 4. BDRC German hotel guest survey.


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Why Munich? Germany is one of Europe’s strongest investment markets and Munich is one of the key cities driving growth. As Germany’s unofficial southern capital, it presents an excellent opportunity for hotel investment. Although painted as the straight-laced cousin of hedonistic Berlin, Munich very much has its own identity. In addition to the world-famous Oktoberfest, which attracts well over 7 million visitors every year, the city has enviable cultural heritage and stunning gothic architecture. The city centre is entirely walkable, giving the Bavarian metropolis something of a small-town feel. It has more than 80 museums for the culture hounds, the triple-naved late-Gothic cathedral Church of Our Lady and an entire suburb of Olympic legacy.

With relatively inexpensive land prices, strong economy, growing appetite for branded hotels, a heaving entertainment calendar and business and leisure tourism, Munich presents a compelling case for investment.

Munich is green, very green. Laced with 750 miles of tree-lined bike paths and the winding banks of the Isar river, it is heaving with postcard-perfect (or Instagram-ready) picnic spots. It is at its most charming, however, at Christmas when the Weihnachtsmärkte, or Christmas markets, line the streets and cosiness is but a glass of mulled wine away. The city boasts some showcase IHG properties. The Holiday Inn® Munich – City Centre houses an excellent example of the Open Lobby, while the brand new Holiday Inn Express® Munich – City West is the first Generation IV hotel in the country. 19


INTER VIEW

Meet…

The DACH Team

The DACH (Germany, Austria and Switzerland) Development team is made up of Associate Vice President Martin Bowen, Director René Schappner and Executives Florian Kern, Caspar Kraushaar and Esther Lueck. Their IHG® experience ranges from Martin’s 20 years to Esther’s two months! Here they tell us about their recordbreaking signings, IHG’s commitment to the market and how their varied careers inform their role today. What is the secret to achieving scale in Germany? Martin: There is no one secret, but it is important to get on well with our partners. We find solutions through our market knowledge and the Franchise Plus programme, which is tailored to the complex, lease-dominated German market. René: Franchise Plus is an excellent resource and we spend a lot of time working with investors and our franchisees to prove that IHG brands, especially the mid and upper-midscale sector, can provide good returns.

Is it important to have IHG people on the ground? Martin: It’s certainly an advantage. It shows our commitment to nurturing relationships with our valued partners and courting new ones. German speaking people, German-language documents, these show how serious IHG is about growth here. 20

René: IHG set Germany as a key country very early on and now other companies are playing catch up. We are able to drive growth and having a local team makes a big difference. Interacting with local partners in the language really speeds things up and streamlines the deal process. Caspar: And I am sure it has contributed to our record signings over the last two years.

What are the trends you are seeing in this priority market? Martin: We have strategic gaps still to fill in the midmarket which is why we’re growing so strongly in that segment, but with the good demonstrable performance in the Holiday Inn® brand family, we are in a good position to grow across all segments. Over half of the market is unbranded,


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IHG set Germany as a key country very early on and now other companies are playing catch up. We are able to drive growth and having a local team makes a big difference. ®

René Schappner, Development Director, DACH

When you find a site, call me.” It took me four days, but I found a site and I have been in development ever since.

René: I started in real estate, finding buyers for real estate we managed. It helped develop my negotiation skills, but you are only involved in a transaction for a short period of time. What I love in development is you see the project from initial discussion to hotel opening. Florian: I was on the IHG® Future Leaders programme when I met Martin. When I asked if I could join his team, he said no. Then he suggested I call his assistant but gave me no details and said, “If you’re not able to find out who my assistant is, you’re not ready to work with me.” I found out and feel very lucky to have got the chance to join the team. Caspar: Before joining IHG I worked for Hyatt, a hotel consultancy firm and finished my hotel management studies. It helps to have worked in so many fields of hospitality. I apply skills I have learned in growth, numbers and operations to this role every day.

From left to right: Caspar Kraushaar, Martin Bowen, Esther Lueck, René Schappner and Florian Kern

so there is a lot of opportunity for IHG to add value with our international brands. René: Appetite from international investors has grown and it’s great that IHG already has a stronghold in the market. When you look at what we’ve done with Holiday Inn Express® Generation IV, it enhances the guest experience while providing opportunity for greater returns. Florian: There are new brands coming onto the scene that are hip, but when we show owners what we have achieved with the Holiday Inn brand family, they can see we have made real investment in keeping the brands up to date, relevant and loved by guests. Caspar: We have opened some great hotels in recent years and there’s still a lot of room for all of our brands to keep growing. We have lots of new builds in the pipeline which strengthens our investment proposition even further.

Tell us a bit more about your career… Martin: When I started, I was in charge of lease agreements for a supermarket. On my first day my boss took me to this village, threw me out of the car and said, “We need a new store here.

What makes a successful development team? Martin: Skillsets should complement one another. We have a trusted MDA and franchise community, who believe that we speak as one team. They ask any one of us the same question and we will all give the same answer. That unity is our strength. René: It is good to have fresh members of the team with Florian, Caspar and Esther. Adding to our team shows how busy we are and how dedicated to our market we are. Caspar: I have always learned that ‘Teamwork makes the dream work’ and it’s true. We have good combined local knowledge, diversity and vision. Florian and I have come on board as site finders and we bring a different perspective to the industry. Florian: Having different age ranges in the team is something you can leverage. Martin and René’s experience is extremely powerful when positioned with my and Caspar’s operational backgrounds. We connect with different partners in hotel development, which means we can connect at every level of a deal. Esther: Trust and communication is key, especially for someone new like me. I know I can ask the team anything and it is exciting to know that together we are contributing to IHG’s global success. Martin: It is like a relay and each member passes the baton to the next. We are all on the same team, putting the same effort into achieving our goal to build profitable businesses for our owners and preferred brands for our guests. 21


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Responsible business‌ the foundation to success

Crowne PlazaÂŽ Copenhagen Towers is one of only a handful of hotels in the world to be awarded Leadership in Energy and Environmental Design (LEED) Platinum status 26


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Doing business responsibly is fundamental to running any successful business in the 21st century. We found out more about the initiatives that IHG’s corporate responsibility team has developed to create value for owners and improvements to environmental and social business practice. “IHG® has a long-standing commitment to behaving responsibly. It underpins our business practices and is fundamental to the way we operate,” explains Kate Gibson, Vice President of Corporate Responsibility. “The philosophy behind our responsible business programmes is achieving business benefits alongside environmental and community issues. Our motives are as much about driving cost efficiencies and maximising return on investment as they are about helping people and the planet.”

Investing in the future The number one cost item in a hotel is staff. Finding, developing and retaining good people remains a challenge in the industry and IHG® Academy was created to do just that. IHG Academy is one of the core corporate responsibility initiatives. A collaboration between hotels and education providers and/or community organisations, it helps people develop hospitality skills and improve their employability. By offering work experience placements in their properties, hotel owners and General Managers can gauge that person’s fit with the hotel. And, having a steady pipeline of new talent contributes to running a hotel more efficiently. Reaching out to local people, IHG Academy improves local employability and bolsters the reputation of the hotel brand. It helps business perform better and helps make a positive impact on the community. It’s win-win and the numbers are impressive. Having smashed the five-year target of enrolling 20,000 IHG Academy participants by 2017 two years early, IHG has now doubled its target to 40,000. Clearly the appetite is there.

What is measured is managed The second highest expense to a hotel is energy. IHG Green Engage™ system was developed by IHG to help hotels measure and manage energy consumption. It is relevant throughout a hotel’s lifecycle – from the build through to operations – and through more efficient operation, gives owners better returns and thus enabling them to invest behind delivering a great guest experience. Guest experience is fundamental to environmental sustainability. While guests are concerned about a hotel’s green policies, they still demand a quality experience.

InterContinental® Berlin is a Level 4 Leader IHG Green EngageTM system hotel. The hotel is powered solely by renewable energy sources

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Earlier this year IHG completed work on what is arguably the hospitality industry’s most comprehensive water footprint analysis to date. Pairing with global experts, Water Footprint Network (WFN) IHG mapped its global estate of more than 5,000 open properties and over 1,000 pipeline hotels, against a series of water-related risks, from pollution to drought to flooding. The aim is ultimately to enable hotels to manage and mitigate water risk, allowing them to measure and monitor water usage, improve their water performance and resilience against localised challenges and engage guests in water stewardship. And, IHG has some stretching sustainability targets. From 2013 to the end of 2017, it aims to reduce water use per occupied room in water-stressed areas by 12%. By the end of 2015, IHG branded hotels had already reduced it by 4.8%. Programmes like this will help the company and its owners reach those targets.

IHG® Foundation: working together in times of need InterContinental® London Park Lane has implemented over 140 green solutions and is a Level 4 Leader IHG Green EngageTM system hotel

For some time, consumers have been questioning how green and ethical the brands they choose are, but more recently there has been a notable increase in the amount of corporate interest on environmental credentials. Kate continues: “At IHG, we know it’s not just about the bottom line, it’s about the top line. An increasing number of corporate clients have started to ask hotels detailed questions about their corporate responsibility credentials in the RFPs. Those questions are not the vague ‘Are you green?’ questions like they used to be. They are more specific about environmental performance, carbon per occupied room, water usage and so on. Hotels that use the IHG Green Engage system are able to answer those questions and win revenue from those RFPs.”

Water way to save waste Thanks to over 200 green solutions, hotels can develop tailored action plans through the IHG Green Engage system. Nearly 30 solutions are devoted to water alone. Actions include tracking consumption, guidance on more specific solutions including metering and rainwater harvesting, and the installation of devices such as low-flow taps and showerheads. All of the guidelines consider property-unique aspects like the age of the building, the level of risk and, importantly, the business case for tackling it.

In addition to the corporate responsibility initiatives is IHG® Foundation, a charity launched by IHG in February 2016. An evolution and expansion of IHG® Shelter in a Storm: IHG’s previous programme dedicated to disaster relief, it helps set the foundations for stronger, healthier, more prosperous communities around the world. By helping communities develop hospitality skills, supporting those impacted by disasters, encouraging grassroots community groups, and protecting the environment, the aim is that local communities are better places to be for all. The philanthropic element to the IHG Foundation combined with IHG’s corporate responsibility programmes enhances IHG’s standing in the industry. It runs as a better business, serves as a more profitable partner and as Kate concludes, “The reality is, we’re all in this together. We are working hand-in-hand with owners, who have chosen to place their trust in IHG and its family of brands. Our aim is to protect their investment and boost the reputation of their individual hotels, IHG brands and IHG as a whole.”

For more information about responsible business at IHG, visit www.ihgplc.com/responsiblebusiness and www.ihgfoundation.org

Recognition and awards summary

A member of the FTSE4Good Index

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Listed by Forbes Magazine as being among the Top 50 Green Brands Chosen by Customers

Awarded the Project Icarus Sustainability Gold Medal by the Global Business Travel Association

100% score on the Human Rights Campaign’s 2015 Corporate Equality Index for second year running


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Crowne PlazaŽ Copenhagen Towers has Denmark’s first groundwater heating and cooling system, high performance lighting and occupancy sensors and all food waste is converted to bio-gas and fertiliser


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The unique value of the Owners Association The IHG® Owners Association is the owners’ voice to InterContinental Hotels Group. We take a look at how this unique body in the industry helps to connect the diverse global ownership community and aims to improve return on investment for IHG owners. The IHG Owners Association is comprised of owners of IHG properties throughout the world, working hand-in-hand to improve returns, strengthen systems and exchange ideas and best practices. Originally established in 1955 by Holiday Inn® founder Kemmons Wilson, the IHG Owners Association was the first group of

its kind in the hotel industry. Today, more than 60 years later, it represents the interests of nearly 4,500 owners and operators of more than 3,400 IHG-brand hotels around the world. “Throughout the years, the IHG Owners Association has worked hard to support the interests of the diverse ownership community of IHG hotels,” says Steve Ehrhardt, 2016 Global Chair of the Owners Association. “Our meetings and networking events

Nicola Taylor, Europe Regional Representative of the IHG® Owners Association Board, and Patrick De Peuter, Vice President Business Support & Development, Europe for the IHG Owners Association


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Steve Ehrhardt (left), 2016 Global Chair of the IHG® Owners Association, and Elie Maalouf, CEO, IHG Americas

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Today, more than 60 years after it was established, the IHG Owners Association represents the interests of nearly 4,500 owners and operators of IHG-brand hotels around the world. ®

Steve Ehrhardt, 2016 Global Chair of the Owners Association

provide an excellent educational forum for owners to learn from and network with Association leadership, IHG executives and each other, in intimate and focused environments.”

Together we are stronger The Association’s mission statement is ‘Better Together to Enhance Owner Returns’, but how does it practise what it preaches? By concentrating its efforts in three key areas: advocacy, education and collaboration. The Owners Association is an advocate for the long-term interests of its membership community and it educates by providing financial, leadership and operational tools that engage members in optimum performance. Steve, who became the Chair in January 2016, elaborates: “Through our networking and informational sessions, we have the chance to speak with, listen to, and learn from each other and share our best practices regarding issues including revenue management, sales, working with OTAs, understanding loyalty programmes, keeping up to date with brand standards and so much more.” And the Association does all of this in collaboration with IHG by working with senior executives to build brand value, increase ROI, cultivate guest preference, encourage sustainability and drive long-term gains. Exchanging ideas, information and best practices, and working together for the benefit of all is a part of the DNA of the IHG Owners Association. Ronald Barrott, group CEO of Pro-Invest and AMEA Representative of the Owners Association Board agrees: “The support that the Owners Association receives 28

from IHG says a lot about how important the owners are to the company. I consider myself to be in a very fortunate position to be one of the 14 members of the Board. An owners group such as this is truly unique to the industry and bolsters the IHG brand. Collaboration has only got better over time.” The Board size has also been reduced to better focus on the Association’s priorities. These priorities are people, IHG® Rewards Club, Distributions and Technology – all of which affect every Association member, regardless of their region.

Championing change For decades, the Association has been an empowered and influential body in the fast-paced hospitality industry. To maintain momentum, internal governance has been a big initiative for the Association over the last couple of years. Steve echoes the point: “The industry moves way too quickly to be bogged down by internal processes that will hinder us from really making a difference in the marketplace. We need to have structure in place that allows us to react quickly and decisively when opportunities to innovate arise. IHG has a renewed focus on innovation and the Association needs to engage quickly to help IHG get new ideas to the market faster.” When owners identify challenges in the business, the Association’s new governance structure is more nimble and responsive and can throw its weight behind championing improvement and change to better serve our membership around the world.


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Two Association powerhouses in Europe are Nicola Taylor, Regional Council member of the Board, and Patrick De Peuter, former Board member and now current staff Vice President of Business Support and Development. Nicola Taylor joined as Europe Regional Representative of the Owners Association Board in 2003. Previously, she sat on the committee for European Sales and Marketing for IHG across all brands – Crowne Plaza®, Indigo, Holiday Inn and Holiday Inn Express® and currently chairs the Holiday Inn Express Owners committee in the UK, which feeds directly into the global IHG Owners Board and sits

on the Board of The British Hospitality Association. They are two highly experienced and respected members of the hospitality industry and are committed as the voice of the European membership community. Active and dedicated people like these form the backbone of the restructured Association and serve owners better than ever before. Put simply, the IHG Owners Association helps owners to secure more value out of their franchise and a better return on investment. Whether it is learning best practices from the best hotel owners in the world, attending leadership training designed to improve business, or having one voice representing their interests, the Association is an invaluable and unique service ensuring IHG owners around the world continue to create Great Hotels Guests Love.

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One noticeable improvement has been to separate regional priorities from global priorities. The Association has formalised its global work by establishing Regional Councils (Americas, Europe and AMEA) that work directly with IHG’s regional presidents on strategy and execution. Ronald continues: “Until recently, it might have seemed a little fragmented because you had such a dominant part of the Association in the Americas, but through a renewed vision, it has been restructured to create something a lot more all-encompassing. The Board is a lot smaller and it now represents every global region at once. This way, we tackle the principle issues that affect global lodging and then drill down into the individual regions. Everybody now has a better working understanding of the global owner network and challenges they may face.”

The support the Owners Association receives from IHG says a lot about how important the owners are to the company. ®

Ronald Barrott, Group CEO of Pro-Invest and AMEA Regional Representative of the IHG® Owners Association Board


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EVENTS

Dates for your Diary You can catch IHG’s development and design teams at a number of forums throughout the year. From appearing on speaker panels at key industry events to sharing brand value proposition at roadshows, the teams use these platforms to illustrate what they are doing to achieve IHG’s ambition for profitable growth and great guest experiences. They look forward to seeing you over the next few months. MUNICH

MANCHESTER

MUNICH

4-6 O CTOBER

12-13 O CTO B E R

18 O CTO B E R

EXPO REAL

Annual Hotel Conference

IHG Germany Investor Day

JOIN US

LONDON

LONDON 19 -21 OCTOBER

MIPIM UK

FOR THESE UPCOMING

EVENTS

8- 9 NOVE M B E R

Deloitte 28th European Hotel Investment Conference

LONDON

WARSAW

LONDON

22 -23 NOV EM BER

28- 29 NOVE M B E R

6 DE C E M B E R

Sleep

Hotel Trends Poland & CEE

IHG UK & Ireland Investor Day

ZAGREB

BERLIN

CANNES

8 -9 F EB R UAR Y 2017

6- 8 M ARC H 2017

14- 17 M A RC H 20 1 7

Adria Hotel Forum

IHIF

MIPIM

31


H A L F- YEAR

SIG NING S

Half-year signings In the first half of 2016 the Europe region signed 24 hotels,* the most in a first half since 2008. This doesn’t even include January’s Kimpton® signing in Amsterdam, which as a rebrand doesn’t officially count. As the first Kimpton signing outside of the Americas, we thought it was worth a mention! Partnering with IHG® means joining one of the most successful hotel companies in the world, with unrivalled booking technology, revenue management tools, digital capabilities, sales and marketing muscle and operational infrastructure. In the European Development, Design & Openings team, you have dedicated support from ideas to opening. To discuss your project, contact them on europedevelopment@ihg.com

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*Figures as at 30 June 2016.

1. Holiday Inn Express® Bridgwater, UK 120 rooms; Signed 4 January; New construction; Due to open 2025 2. InterContinental® Venice – Palazzo Nani, Italy 51 rooms; Signed 1 February; Conversion; Due to open Q1 2018 3. Holiday Inn Express® Mannheim – City Hauptbahnhof, Germany 160 rooms; Signed 15 February; New construction; Due to open Q1 2018 4. Holiday Inn Express® Brussels – Grand-Place, Belgium 100 rooms; Signed 18 February; Conversion; Due to open Q2 2017 5. Hotel Indigo® Tel Aviv – City Centre, Israel 160 rooms; Signed 17 March; New construction; Due to open Q3 2019 6. Holiday Inn Express® Oberhausen, Germany 140 rooms; Signed 31 March; New construction; Due to open Q1 2018 7. Hotel Indigo® Durham, UK 81 rooms; Signed 1 April; Conversion; Due to open Q2 2018

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1 9 8 4

6

15

3

21

18

2 19 20

8. Holiday Inn® London – Kensington, UK 708 rooms; Signed 1 April; Rebrand; Due to open Q4 2016 9. Crowne Plaza® Basingstoke M3, Jct.6, UK 141 rooms; Signed 6 April; Rebrand; Due to open Q4 2016 10. Holiday Inn® Hatay – Antakya, Turkey 163 rooms; Signed 15 April; New construction; Due to open Q3 2019 11. Holiday Inn Express® Regensburg, Germany 182 rooms; Signed 18 April; New construction; Due to open Q2 2018 12. Holiday Inn Express® Amsterdam – City Hall, Netherlands 89 rooms; Signed 11 May; New construction; Due to open Q2 2017

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11

24

13. Holiday Inn Express® Astana – Turan, Kazakhstan 232 rooms; Signed 13 May; New construction; Due to open Q2 2017

17. Holiday Inn® Gdansk, Poland 236 rooms; Signed 14 June; New construction; Due to open Q1 2019

14. Crowne Plaza® Yerevan, Armenia 98 rooms; Signed 19 May; Conversion; Due to open Q2 2018

18. Holiday Inn Express® Pforzheim, Germany 140 rooms; Signed 16 June; New construction; Due to open Q3 2019

15. Crowne Plaza® Felbridge, UK 116 rooms; Signed 31 May; Rebrand; Due to open Q4 2016

19. Holiday Inn Express® Nice – Grand Arenas, France 131 rooms; Signed 17 June; New construction; Due to open Q2 2019

16. Hotel Indigo® Warsaw – Nowy Swiat, Poland 60 rooms; Signed 14 June; Conversion; Due to open Q4 2017

20. Crowne Plaza® Nice – Grand Arenas, France 129 rooms; Signed 17 June; New construction; Due to open Q2 2019


13

17 16

14

22 23 10

5 21. Holiday Inn® Mannheim City – Hauptbahnhof, Germany 150 rooms; Signed 29 June; New construction; Due to open Q1 2018 22. Holiday Inn® Istanbul – Old City, Turkey 107 rooms; Signed 29 June; Rebrand; Due to open Q2 2017 23. Crowne Plaza® Nevsehir – Cappadocia, Turkey 184 rooms; Signed 30 June; Conversion; Due to open Q2 2017 24. Holiday Inn® Schindellegi – Zurichsee, Switzerland 82 rooms; Signed 30 June; Rebrand; Due to open Q3 2016

33


INTER VIEW

Interview with…

David Kellett Vice President Head of Development & Investment Analysis, Europe David Kellett is IHG’s new Vice President Head of Development & Investment Analysis, Europe. He joined IHG® in January 2013 and has held global leadership roles in M&A, investor relations, and financial planning, before taking on his new role in July this year. Before IHG he worked in investment banking and he holds a degree in Chemistry from the University of Oxford. We caught up with him about his new role, trends in the market, and the importance of teamwork. What does IHG have over competition? This starts with our strategy, the winning model. We bring strong preferred brands to owners and guests – just think of the Holiday Inn® Open Lobby, or the Next Generation design for Holiday Inn Express®. Our scale allows us to invest in technology and growth, we have the largest hotel loyalty programme in the world, and we continue to enhance our direct channels with developments like our No.1 rated mobile app, and Your Rate. Most importantly though our strength comes from our people and culture, which I consider IHG’s biggest asset. People bring the system to life and deliver strong owner returns, whilst building great relationships and real partnerships with our owners.

Do you need a calm disposition to do your job? It certainly helps! Deals can get quite personal and emotional so my job is to provide a level, rational perspective. As I look at the investment analysis role, I’m aware that finance can be viewed as the gatekeepers, but I’m more interested in finding mutual solutions that work for both development and finance. My role is to help IHG manage risks that will ultimately help us deliver the best results for our owners and guests.

Why did you make the move from banking to hotel investment?

What trends are currently driving growth?

Before IHG I spent a long time in investment banking, specialising in M&A and debt in the leisure and real estate sector, so I was well versed in the industry before joining IHG. I ran IHG’s investor relations team here during a very busy period when we had an activist shareholder, and bought Kimpton® Hotels & Restaurants, our first transaction in about 10 years.

Globally, the long-term fundamentals remain strong. You’ve got a growing middle class population with a propensity to travel, and rising travel flows. Technology is also key and where our scale is a real benefit, as we use it to deliver a more personalised service. By upgrading our CRM systems we provide hotel employees with deeper knowledge of our guests and how best to connect with them when they walk through the door.

I took my current position because during my career at IHG I have done a lot of Group roles and I wanted to do a regional role where you are really at the coalface, seeing deals happen day to day. Europe is a mature market, but remains one that’s fragmented from a brand perspective. This presents an opportunity to access slightly more complicated deals and I hope my background can really help. That’s really exciting for me.

You talk about the people being important, who do you deal with on a daily basis at IHG? My job is all about partnership so the internal network you need to build is big. This starts with our wider growth team in design, engineering and openings, but also includes legal, accounting, brand, operations, communications and our development teams across the world. We are developing new hotels and that touches the whole business. 34

I am lucky to have an extremely strong team around me with deep knowledge of each market in our region. This is critical to our success, particularly for me now that I have taken on the further role of leading the development team. There can be a lot of juggling!

Now a bit more about you, what did you want to be when you were a child? When I was five I wanted to be a fireman, but that would’ve been completely wrong for me. Although with hindsight, I do put out quite a lot of fires, so maybe that’s appropriate!

And what do you do in your spare time after all that firefighting?! I’d like to play more golf, go skiing more and go to the gym more, but I have two young boys so I spend a lot of time running around after them. I’m enjoying this phase of their life, seeing them grow up and develop their different personalities and family is very important to me. To relax, it sounds boring but I watch TV. I’m from Newcastle, so I am obliged to watch Geordie Shore and anything with Ant and Dec and I have to support Newcastle United, even though they’ve been relegated!


INTER VIEW

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IHG’s people bring the system to life and deliver strong owner returns whilst building great relationships and real partnerships with our owners.


INFO G R AP H IC

What is the IHG® Foundation? The IHG Foundation helps to build stronger, healthier more prosperous communities around the world. It focuses on helping communities develop hospitality skills, supporting those impacted by disasters, encouraging ® grassroots community groups and protecting the environment.

How is the IHG Foundation funded?

Who does it support?

• Fundraising events • Donations • IHG® Rewards Club points donations

IHG Green Engage™ system

How does it sit alongside our current Corporate Responsibility programmes?

IHG® Academy

The IHG Foundation and IHG Corporate Responsibility programmes are two separate but highly aligned initiatives. The Corporate Responsibility programmes are integrated into IHG's operations and deliver both a commercial benefit as well as community impact at the same time. As a registered charity the IHG Foundation will fund projects that are for the benefit of the whole community.

The IHG Foundation provides cash grants to organisations working across all four areas of focus across the world.

How can hotels get involved? Hotels can take part in our global fundraising week every September and, of course, throughout the year.

How can guests get involved? Guests can donate IHG® Rewards Club points or make a donation on ihgfoundation.org

IHG® Foundation

For further information on the IHG Foundation, please visit ihgfoundation.org

The IHG Foundation is a charity registered in England and Wales (no. 1164791) and a 501(c)3 organization in the United States. In China, the IHG Foundation is brought to life through a partnership with the China Soong Ching Ling Foundation.


Creating loyalty to drive owner value Introducing Your Rate, a new global benefit that extends exclusive rates to IHG® Rewards Club members and strengthens our loyalty programme, and as a result, drives the most profitable revenue for owners and hotels through our direct channels. ihg.com/yourrate

*IHG® Rewards Club not applicable to Kimpton® Hotels & Restaurants; to be included at a future date. ©2016 InterContinental Hotels Group. All rights reserved. Most hotels are independently owned and/or operated.


CONTACTS Robert Shepherd Chief Development Officer and SVP Development, Design & Openings, Europe Tel: +44 1895 512 173 robert.shepherd@ihg.com David Kellett Vice President Head of Development & Investment Analysis, Europe Tel: +44 1895 512 326 david.kellett@ihg.com Michael Walsh Vice President Design & Engineering, Europe Tel: +44 1895 512 791 michael.walsh@ihg.com Rebecca Bryson Head of Hotel Openings, Europe Tel: +44 1895 512 165 rebecca.bryson@ihg.com

InterContinental Hotels Group plc Broadwater Park, Denham, Buckinghamshire, UB9 5HR, United Kingdom Tel: +44 1895 512 000

We would love to hear from you! Please direct any thoughts, suggestions or advertising enquiries to europedevelopment@ihg.com

DQ (Development Quarterly) - Issue 6  
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