Hotel brand IHG has revealed the planned launch of an all-suites upper midscale brand, targeting the $18bn (£13bn) industry segment, in 2019.
The brand is targeting the segment as result of strong guest and owner demand driving a 70% increase in room supply over the last four years. The announcement was made alongside IHG’s preliminary full year results, which reported a 6.6% increase in total revenue to $27.4bn (£21.2bn) – with global RevPAR also up 2.5% during 2018.
IHG recently acquired the Six Senses Hotels Resorts Spas brand, which features properties in 12 countries, and is expected to expand to 60 properties within the next 10 years.
Keith Barr, CEO at IHG, said: “We have made excellent progress in 2018 executing against the strategic initiatives I set out a year ago to accelerate our growth, whilst delivering a strong financial performance.
“The investments we have made have had a significant impact, allowing us to further evolve our established brands, move quickly to strengthen our portfolio both organically and by acquisition, and create real momentum in our business.”
He added: “Our strategic focus on accelerating our net rooms growth helped drive a net system size increase of 4.8%, and our best performance for both openings and signings in a decade, leaving us well positioned for future growth.”