IHG Group Business Report

Introduction

IHG's history

IHG is one of the world's leading hotel companies-we have 679000 rooms in over 4600 hotels in nearly 100 countries and territories around the world, we know hospitality. And IHG has a long history.

1777-1960s: William Bass sets up a brewery in Burton-on-Trent. Bass becomes one of the largest brewers and pub owners in the UK.

1988: Bass buys Holiday Inns International.

1990: Bass buys the North American Holiday Inn business and Holiday Inn grows internationally.

1991: Bass launches Holiday Inn Express.

1994: Bass launches Crowne Plaza

1997: Bass creates and launches a new hotel brand, Staybridge Suites by Holiday Inn. This becomes a passport to entry North American market. And Staybridge Suites becomes the fastest brand in this segment to reach 50 units in the Americas.

1998:Bass acquires the InterContinental hotel company.

2000:

2003: In December, IHG adds the midscale extended stay brand Candlewood Suites.

2004: In April, IHG announces the introduction of a new brand, Hotel Indigo.

2005: Following the success development of Staybridge Suites brand in North America, IHG launches Staybridge Suites UK in April 2005.

2007:IHG combines Holiday Inn, Express by Holiday Inn and Holiday Inn Express to Holiday Inn brand family.

2009:Holiday Inn and Holiday Inn Express becomes an 'Official Hotel Services Provider to London 2012' and a Tier Three commercial partner.

IHG launches 'Green Engage', it is an online system, it makes more effectively for the hotel to manage their energy consumption.

2010:IHG launches its Priority Club Rewards iPhone app.

2011:IHG launches 'Best Price Guarantee'.

2012:IHG launches EVEN ™Hotels and HUALUXE ™ Hotels and Resorts.

IHG'S Vision

We want to become the greatest company in the world through creating great hotels guest love.

Organization's Culture

Room to be yourself

In order to achieving our purpose of creating Great Hotels Guests Love , we have made a commitment to our people that we will create an environment and culture where they can give their best and make a difference. It is called Room to be yourself.

  1. room to have a great start
  • Attracting the right people to our brands-so we can grow
  • Creating brand ambassadors for day one
  • Helping people to make the next move
  1. room to be involved
  • we help people feel proud of where they work
  • Opportunies for everyone involved in once a lifetime
  • Everyone has the opportunity to have their say
  1. room to grow
  • Developing a world class learning culture
  • People live our brands
  • Our leaders know how to change
  • Everyone shares best practice
  1. room for you
  • Saying thank you for great service
  • Making people feel special
  • Giving something back
  • Helping our owners to hire, train, involve and recognize their people
  • Supporting the next generation of owners

Winning Ways

IHG's Winning Ways are the way we do every day-a series of actions that are helping us to become one of the best companies in the world.

  1. Do the right thing
  • We keep our promises and we don't let people down
  • We seek our the facts and trust our judgement
  • We take responsibility and make decisions even when they are difficult
  1. Show we care
  • We treat people as individuals
  • We look and listen for the little things that make a difference
  • We use our experience to find new ways to deliver great service
  1. Aim higher
  • We put our hearts into learning new things
  • We challenge and encourage ourselves and each other
  • We always look for ways to improve
  1. Celebrate difference
  • We welcome different perspectives and listen to everyone's ideas
  • We are respectful of all cultures and look to learn from others
  • We play an active role in the communicates in which we operate
  1. Work better together
  • We work hard to develop excellent working relationships with colleagues
  • We think about what we do and how it might affect others
  • We trust and support each other

Corporate Responsibility

Corporate Responsibility is a key part of our Responsible Business practices. We treat it as a strategic business issue. Because it helps us successfully achieve our mission target.

Environmental sustainability

-Green Engage

Using Green Engage, it tracks every stage of the hotel lifecycle, detection it energy, carbon and water and the management of waste in our properties along with the associated costs. An important characteristics in Green Engage is Green Solutions-more than 200 actions property can apply to reduce its environment impact. This programme provides owners suitable advice and choosing cleaning materials and providing staff training on environmental sustainability. Green Engage also provides its report to answer our ability of the sustainable development of the enterprise customer problem for our property.

At 31 December 2012, 2219 of our hotels were enrolled in Green Engage. Our goal is to make our whole property tracking ,management , and report its impact on the environment over time.

Sustainable communities

In 2012, we focus more on the community, successfully expanding both the IHG Academy programme and the IHG Shelter in a Storm Programme.

-IHG Academy

The IHG Academy is a cooperation with individual IHG hotels or corporate offices and local education providers and community organisations ,which provides local people opportunity to fulfil their skills and expand their employment prospects in one of the world's largest hotel companies.

All IHG Academy programmes have three things in common:

  • They co-operate with local community organizations and educational institution.
  • They include work experience placement, make the student's skills and experience working in a hotel
  • They include performance feedback and a recruitment discussion, and it also provide opportunity to participants that a real experience of the job interview process, it becomes more easy to find a job for them and in many cases, they can find a job in one of IHG's hotels.

Currently we have more than 150 IHG Academy programmes in 37 countries around the world.

-IHG Shelter in a Storm Programme

According to IHG Shelter in a Storm Programme, our hotels is occurring in response to receive guideline on when and how the best times, natural or man-made disasters. When a disaster comes, funds from the IHG Shelter Fund can be allocated fast-track our hotel and effectively respond to support our customers, employees and local communities provide important goods and accommodations financial support.

In 2012,$545000 was

Stakeholder engagement and public affairs

It can help us to identify and address our priorities. They include guests ,corporate clients, our hotel owners, local communities, employees, shareholders, suppliers, academic institutions, non-government organisations, governments and industry-specific institutions.

Current product portfolio

InterContinental® Hotels& Resorts

InterContinental Hotels& Resorts is the Group's luxury brand. It is located in major cities and resorts across the world more than 60 countries. Has more than 60 years of experience, with first- class facilities to support the talent will help in understanding the good of the group travel and rich people want to be connected to what is special about a hotel and destination in the fierce competition in the field. The spirit of the brand is to make the guests to share their knowledge and enjoy a great experience, enrich their lives.

Crown Plaza ®Hotels& Resorts

Crown Plaza Hotels & Resorts is the Group's luxury brand, is now the world's fourth-largest full-service hotel brand in the segment. Most of the Crowne Plaza hotel under the concession agreement , the United States and Europe to work and the Group management in other markets. In China, the Crowne Plaza is the world's largest international upscale brand. At December 31, 2012, a total of 392 Crowne Plaza hotel, the Group accounted for 16% of total hotel rooms.

The Holiday Inn Hotels& Resorts

Holiday Inn Hotels& Resorts( including Holiday Inn Club Vacations and Holiday Inn Resorts)("Holiday Inn") ,which is operated by franchise agreements.

Holiday Inn Express

It is almost operated by franchise agreements.

Staybridge Suites

Staybridge Suites hotel is an upscale extended stay brand of the Group in the long-distance travel offers studios and suites with full kitchens and separate sleeping and working areas in a sociable, family-like atmosphere.

Candlewood Suites

Candlewood Suites hotel is the middle group in North America as the center of the value of extended stay brand, offers a home-like accommodation great value for guests. Trust system has prevailed for the brand, "Candlewood Cupboard," which is the accumulation of our guests in the honor system and new " Lending Locker" allows guest to borrow kitchen equipment essentials and treat one convenient place.

Hotel Indigo

Hotel Indifo is the Group's boutique brand, and the world's first global boutique hotel brand focused on guests who appreciate art and design and who want to experience something different. Hotel Indigo provides guests with the freshing design and service experience synonymous with a boutique hotel, aligned with the local neighbourhood story.

EVEN Hotels

It is the first hotel brand design who maintain a healthy and active lifestyle, and are looking for a complete health experience in mainstream price for business and leisure travelers .

HUALUXE Hotels™ & Resorts

This brand was designed specifically for Chinese guests. This is because Chineses market in the world and what consumers expect in China today.

Financial Information

Can be seen from the picture, the United States still remain main market for IHG Group, however, one more market we need to mention is China market. It is because of this piece of bullish market, so they created a new brand for the Chinese market. I believe this brand will not be long before they bring more benefits.

Blue Ocean thinking

External Environment

Five forces

The threat of entry

Brazil has become a concern of our market. 2014 World Cup and 2016 Olympic Games will be held in Brazil. Needless to say, this will lead Brazil's tourism and hotel industry. In brazil, the five-star hotel is less than ten, and the price is expensive. In fact, the local government to attract foreign investment in Brazil, a place has relief, reducing incentives apprentice. So for us, Brazilian market has great potential and it also has low threshold .

In China, Midwest itself has rich tourism resources, and with the development of national measure to the m,Part of the hotel investment will likely turn to the Midwest from the eastern and southern regions. With the further development of the western economy, as well as the further development of tourism resources, Midwestern hospitality industry will be further development of China's hotel industry new and most promising growth area.,

The threat of substitutes:

Nowadays, more and more people would like to choose homestay in their travel. Homestay is that local people provide you the room, you can live there, the most important you can gain a better understanding of local culture when you live in the home of the locals. For example, in TaiWan, homestay is very popular. "The highest state-run homestay should be selling memories, many people may only come once a lifetime, let them always remember was here to feel joy and happiness." Chiayi zhu legend.

He runs the homestay "Four Seasons Star" is located in the middle of the gap in Taiwan Alishan Highway top, is a being whirling bamboo, green tea, bright flowers around Tudor Grange. It has being walls, red roof tiles, revealing the rich European casual style.

In "Four Seasons Star", Zhu Chuan needs based cruise line visitors close to build patiently for them to navigate how to Alishan train ride, to see the sunrise mountain, take the bus. In recent years, Zhu pass reception mainland tourists almost hundreds of people. So can be seen that hotel in Taiwan, facing a challenge rival.

In Europe, Recreation vehicle becomes more and more popular, more and more people are willing to choose this way to travel, because it can save their costs in food and lodging , travel combined with life organically , which is the European and America people chase after hold in both hands. In addition to this, pioneer are pushing this way to China this big market. But given the complexity of the problem of China's transportation itself, recreation vehicle development in China needs to be investigated.

The bargaining power of buyers

In Singapore, we have a lot of hotels, no matter five stars, four stars or budget hotel, it gives our guest a lot of choice.

Bargaining power of suppliers

High-tech becomes more frequently used in the hotel, so the hotel is also adjusted its suppliers. More and more guest willing to use apps to make a hotel reservation, it may save their time, and it also provides them more chance to choose. For hotel, this apps already becomes a trend, especially as a five star hotel, they should follow this fashion, for them, it may also make their employee's work more easier, more effiency.

The extent of rivalry between competitors

In Singapore, although it have a lot of five star hotel, but Crowne Plaza is the first global-name hotel located within the immediate neighborhood of Singapore Changi Airport. This is its favorable competitive conditions relative to other competitors in terms of.

In Dubai, Burj Al Arab is a landmark building,it is like a sailboat shape structure, many tourists come here because of this. Because it is only seven star hotel in the world, this is thanks to its restaurant facilities.