InterContinental Hotels Group has announced plans to debut two hotel brands in China and Asia Pacific. The company's goal is to attract new sectors of consumers—specifically the wealthy and the wellness enthusiasts. "As urbanization moves out further, you're seeing these markets have incredible demand for hotels across the entire chain scale from luxury down to mainstream," Keith Barr, CEO of IHG, told CNBC's "Squawk Box."
IHG will launch its luxury Kimpton Hotels and Restaurants brand and health and wellness Even Hotels brand in region. The change in management and redevelopment of these hotels are set for completion by 2021. Kimpton's first Asian destinations are Shanghai, Sanya in China's Hainan Province and Bali, Indonesia. IHG's 50-villa Kimpton Bali will be developed in partnership with Ownco on the Nusa Dua coast. Gita Wirjawan, chairman, Ownco, told The Financial, “As a travel destination, Bali has experienced continued tourism growth from all over the world, with more than a 20-percent increase in visitors this year alone." Meanwhile, Even Hotels will break ground in China. Barr added that Even Hotels "fits right into the sweet spot" of China's new policy focus on health, wellness, tourism and resorts.
The group has also signed an InterContinental, Holiday Inn and Hotel Indigo for the Asia Pacific region. The InterContinental and Holiday Inn brands are set to enter Vietnam's market with the InterContinental Sapa Resort and Holiday Inn Resort Sapa, which will be complete by 2021 and developed by Alphanam Investment Joint Stock. The InterContinental will be developed with 200 villas and guestrooms near Vietnam's paddy fields. Holiday Inn Resort Spa will have 275 guestrooms. Vietnam will also get its first Hotel Indigo in 2021. Developed with existing owners MIK Group, Hotel Indigo Phu Quoc Starbay will be constructed along Dai Beach in the Starbay precinct.
IHG's portfolio currently has 42 resorts in operation across Africa, the Middle East and Asia, which account for 15 percent of the total portfolio. A further 25 resorts are currently in development.