IHG Hotels & Resorts "Expecting 33% Growth in Korean Market Within 3 Years... Doubling Organization Size"

Expected view of 'Boco Pyeongtaek' scheduled to open in 2023.

[Asia Economy Reporter Yuri Kim] Global hotel company IHG Hotels & Resorts announced that it expects 33% growth in the Korean market over the next three years. In preparation for the post-COVID era, the domestic organization size has also been doubled. IHG, which owns 6,000 hotels and 17 brands worldwide, operates three brands and nine hotels in Korea, including InterContinental, Holiday Inn, and Holiday Inn Express. In 2023, it will open the International Hotel Boco Pyeongtaek in Pyeongtaek, Gyeonggi Province.

Rajit Sukumaran, Head of IHG Southeast Asia and Korea, held an online press conference on the 29th and said, "We expect 33% growth over the next three years through the expansion of our luxury and lifestyle portfolio, which is resonating with Korean consumers, and the introduction of new brands." He added, "Korea will become the third largest source market for travelers in the Asia-Pacific region in the future."

According to GlobalData, the Korean market is predicted to record the highest growth among Asia-Pacific countries from 2020 to 2025. Sukumaran said, "More than 80% of Koreans’ overseas travel will focus on the Asia-Pacific region due to geographical proximity and travel convenience."

At the conference, Serena Lim, Vice President of Development for IHG Southeast Asia and Korea, said that accordingly, they will focus on developing the luxury and lifestyle portfolio in Korea. Lim stated, "We already operate three InterContinental hotels domestically, but to celebrate the 75th anniversary of the InterContinental brand, we plan to further explore brand expansion this year." IHG is also considering introducing boutique hotel brands such as Hotel Indigo and Kimpton, as well as the Vignette Collection, which was added to the global portfolio last August. She emphasized that the Vignette Collection is a suitable brand for major gateway cities like Seoul, Busan, and Jeju.

IHG recently doubled the size of its domestic team to support current hotel operations and future growth. Based on this, they plan to provide locally tailored solutions for each region and focus on helping the hotel industry recover overall. Sukumaran emphasized, "The global hotel industry is still going through a difficult period, and in Southeast Asia and Korea, restrictions for daily life and work vary by country," but added, "Positive signs are emerging." People are already traveling in areas where movement is possible, and IHG’s business is steadily growing worldwide. IHG opened 132 hotels in the first half of this year alone and signed contracts for more than 200 hotels, showing significant growth compared to last year.

He continued, "We confirmed demand for 'hokangseu' (hotel staycations) during the summer vacation and Chuseok holidays in the Korean market," and said, "It is also welcome news that the Korean government is actively promoting vaccination and plans to gradually ease entry and exit restrictions." Factors that drove the hotel industry’s growth before COVID-19 still exist, and the hotel industry is expected to show a similar pattern going forward. Until 2020, travel and tourism outpaced global economic growth for about ten years, and hotel revenue per available room and brand market share steadily increased during the same period.