IHG aims to double hotel portfolio in Vietnam

IHG Hotels & Resorts, one of the world’s leading hotel companies, has reiterated its long-term commitment to sustainable growth in Vietnam, one of its key South East Asia markets.

Earlier this year, IHG stated its intention to double its estate in the country in the next three to five years, where it currently has 15 hotels across five brands and a pipeline of 22 properties.

According to Rajit Sukumaran, IHG’s managing director, South East Asia and Korea, the company has made great progress in this growth ambition. It has operated in Vietnam since 2007, and looks forward to many more years of success and growth in this wonderful country.

Sukumaran added that IHG is achieving this by strengthening its partnerships with ownership groups, including long-term collaborators BIM Group and Sun Hospitality, and new partners such as ConBap Ecological Tourist Co. Ltd. “Together, we’re ensuring our brands grow sustainably, as we bring the right brands to the right locations with the right partner in this vibrant market.”

“This approach enables us to create wonderful hotels and resorts that are sought after by travellers and bring economic growth to Vietnam, where I’m delighted to say we remain on track to more than double our estate in the next three to five years,” said he.

IHG has invested in the market by expanding its team, and setting up an office in Ho Chi Minh City with dedicated resources and capabilities to build new partnerships, and support its hotels and owners.

Sukumaran explained: “This additional local market expertise in Vietnam complements our regional and global teams to leverage the scale and power of IHG’s global systems, enterprise and programmes, while being agile and moving fast to changing market demands.”

So far in 2022, IHG has opened its first new Regent hotel – Regent Phu Quoc – since acquiring the brand, and strengthened its Holiday Inn portfolio with the opening of Vietnam’s first Holiday Inn Resort property in Ho Tram.

Upscale brand Crowne Plaza is also growing fast, with IHG last week opening Crowne Plaza Vinh Yen City Centre – the first upscale international hotel in the area.

Looking ahead, the company aims to bring more of its world-renowned brands to the market, including the debut of upscale brand voco, boutique category leader Hotel Indigo, and Holiday Inn Express – its fastest growing global brand – across a range of destinations.

“It’s important to IHG and our partners that we not only grow our brands, but grow them in a sustainable manner,” continued Sukumaran. “As we expand across Vietnam, we’re proud to support people and the local communities, and deliver on ‘Journey to Tomorrow’, IHG’s ten-year responsible business plan.

IHG and its hotels have partnered with Blue Dragon Children’s Foundation to help members of the community gain new skills, return to school or be ready to start their first role in the workplace.

IHG’s investment in Vietnam shows its confidence in the country as it continues to recover from the pandemic. STR data shows that occupancy levels across the country is rising – up more than 65 per cent year-on-year on 2021 in September, with average daily rate (ADR) up 25 per cent for the same period, demostrating that there’s strong pent-up demand to travel to Vietnam.

The latest IHG search data indicates that travellers in the USA, Australia, India, Japan, Singapore and South Korea are actively searching for Vietnam as a destination, and these top market searches are exceeding 2019 levels.

“There’s still some way to go until airlift is back to pre-pandemic levels from both ASEAN and long-haul destinations, a key component to driving recovery. But with this pent-up demand and the growing industry pipeline, the future is bright for the travel and tourism industry in the country – and we want IHG to be at the forefront of it,” leader of IHG affirmed.