IHG Tilts Toward Mid-Market as Owners Balk at Premium Hotels
Skift Take
With high interest rates, operational costs, and insurance premiums, investors are currently favoring midmarket and extended stay brands like Candlewood Suites, which saw the most deals for IHG in recent quarters.
InterContinental Hotels Group (IHG) has a long-term plan to shift its mix of properties to reflect more premium, lifestyle, and luxury brands. But for now, many hotel investors are balking — preferring mid-market and extended stay brands.
Therefore, IHG is downplaying its upmarket dreams.
"What we are focusing on is the environment for owners, given the cost of interest rates, the cost of operation, the cost of insurance, and all of the issues that really haven't gone away post-pandemic," said Jolyon Bulley, CEO of the Americas region and group transformation lead for luxury and lifestyle. "It's a continued optimization of our owner offer."
Quest to Move UpmarketIHG operates over
