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IHG adds Mr & Mrs Smith
Capital Advisors USD300m for Six Senses Hotels
to our market share gains during the second
InterContinental Hotels Group has signed a
Resorts Spas at the beginning of this year.
quarter.”
partnership with Mr & Mrs Smith, which see
Keith Barr, IHG CEO, said: “This acquisition
The CEO also credited the addition of Small
IHG rewards club members able to earn and
continues the progress we’ve made against the
Luxury Hotels in part with the group’s pipeline
redeem points at over 500 new hotels.
strategic initiatives we outlined a year ago,
growth, with Hoplamazian adding: “The
The move was the latest in a series by the
which included a commitment to adding new
network effect of having such an intense focus
global branded hotel groups to use partnerships
brands in the fast-growing USD60bn luxury
on high-end customer and bringing together
to bolster their stables and offer loyalty
segment.”
the value proposition around the World of
Six Senses currently manages 16 hotels and
Hyatt through Small Luxury Hotels and the
At IHG, the partnership is due to begin early
resorts with 18 management contracts in its
other partnerships that we’ve got, that yields
next year, with the company commenting that
pipeline and a further 50 deals under active
an ability to actually impact the results of these
the partnership would more than double the
discussion. The transaction took IHG’s total
kinds of hotels, and that’s why I think we’re
number of luxury and boutique hotels which
portfolio of luxury hotels to 400 properties with
seeing some of the conversions that we’ve now
members could choose from.
108,000 rooms, out of a total portfolio of 5,518
signed.”
members greater choice.
Claire Bennett, CMO, IHG, said: “IHG’s
hotels with over 825,000 rooms.
HA PERSPECTIVE
exclusive partnership with Mr & Mrs Smith
The agreement between IHG and Mr & Mrs
illustrates the truly transformative travel we
Smith echoes the partnership agreed last
By Katherine Doggrell: As any of the large luxury
bring to our IHG Rewards Club members. This
year between Hyatt Hotels Corporation and
hotel owners will tell you, creating a high-end
loyalty partnership will allow our most loyal
Small Luxury Hotels, which the Hyatt loyalty
property is a massive effort. Marble to be mined, silk
guests to discover even more of the world
programme including more than 200 SLH
sheets to be teased out of worms, staff to be train in
with the most incredible and inspiring luxury
properties globally at which members can
the dark arts of psychic service. It’s not the same as
rewards.
redeem or earn points.
putting a budget hotel next to a petrol station.
“By bringing this spectacular collection of
SLH said the partnership had boosted
The large global hotel brands have got wise to the
award-winning hotels to our direct booking
reservations, while Hyatt members have wider
bother of luxury ownership a while back, although
channels, this partnership means members
choices. Italy, UK, France, China and Greece
they have yet to move as far as franchising other
can earn and redeem points in some of the
have been the most popular destinations
than in extreme cases. Which leaves them in a pickle
world’s most sought-after destinations – the
since the arrangement began in late 2018. At
with their luxury portfolios. It’s very hard to gain
perfect complement to IHG’s growing luxury
its second-quarter earnings, Hyatt said that
scale in a hurry. Yes, you can buy brands, as IHG and
and boutique hotel portfolio, which includes
over 96% of the hotels in the programme were
Accor have. But that can be a but costly, particularly
InterContinental Hotels & Resorts and Six
already seeing bookings from World of Hyatt
when your board would rather you not fritter cash
Senses Hotels Resorts Spas.”
members.
up the wall.
The end of last year saw Mr & Mrs Smith raise
In the same earnings report, Hyatt said that
So why not do one of these loyalty partnerships?
close to GBP4m in crowdfunding as it looked
World of Hyatt members accounted for about
Lots of fun, new hotels, places for loyalty guests to
to pursue further global expansion. According
75% of Hyatt’s website bookings and a third of
stay and even adding the gloss of luxury for potential
to the company’s pitch document, the group
overall bookings.
conversions. But once the hotels have come under the
had 1.5 million members, had completed over
Mark Hoplamazian, the company’s president
auspices of the IHG - you can book direct through
GBP60m in bookings in the last year and grown
and CEO, told analysts: “Elite customer scores
IHG channels - then one has to ask what the point of
booked commission revenues by 35% year-on-
are up significantly, and our global room night
the global branded groups are any more. Curators?
year, generating total revenues of over GBP13m
penetration has increased approximately 460
and Ebitda of GBP1.37m, with 98% of members
basis points to over 41% during the first half of
stating that they would book again.
2019 compared to the same period in 2018. We
IHG has been bolstering its luxury offering
believe engagement of World of Hyatt members
in recent years, most recently paying Pegasus
fuelled our transient demand and contributed
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