IHG Bets on Ultra-Luxury Even in This Economy by Expanding Regent Hotels – Skift

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While coronavirus is expected to provide the worst efficiency year on record for the hotel industry, the economy sectors brands have normally carried out well through the crisis and even brought in significant financiers due to the market segments resiliency.But not all is peaceful on the ultra-luxury front.IHG is pressing ahead with plans to expand the Regent hotel brand, of which it took a 51 percent stake in 2018, across the world as its ultra-luxury brand name above its eponymous InterContinental flag. Many of the instant development pipeline is connected to new-build projects, which industry-wide are dealing with headwinds in the financing market due to banks reluctant to invest in hotels over the unsure return in travel demand.Hyatt showed owners within its Thompson Hotels brand portfolio of high end hotels were considering alternative capital sources to continue constructing residential or commercial properties through the crisis, and Mackie hinted Regent owners, if required, would do the exact same.”Youre talking about hundreds of millions of dollars included in acquiring a place that would fit in with that brand and fitting out a hotel that would adhere to that kind of high-end market brand, from every aspect of the hotel,” Carvell added.

While coronavirus is anticipated to deliver the worst performance year on record for the hotel market, the economy sectors brands have typically carried out well through the crisis and even drew in major financiers due to the market sectors resiliency.But not all is peaceful on the ultra-luxury front.IHG is pressing ahead with plans to broaden the Regent hotel brand, of which it took a 51 percent stake in 2018, across the world as its ultra-luxury brand above its eponymous InterContinental flag.”Our objective with Regent is not to have it be the biggest hotel brand name in the world. We have actually constantly stated 40, perhaps 50, hotels,” said Jane Mackie, senior vice president of international marketing of luxury brands at IHG. Most of the immediate advancement pipeline is connected to new-build tasks, which industry-wide are dealing with headwinds in the loaning market due to banks reluctant to invest in hotels over the uncertain return in travel demand.Hyatt suggested owners within its Thompson Hotels brand portfolio of high end hotels were considering alternative capital sources to continue developing homes through the crisis, and Mackie hinted Regent owners, if required, would do the same.”Youre talking about hundreds of millions of dollars involved in obtaining a place that would fit in with that brand name and fitting out a hotel that would adhere to that kind of luxury market brand name, from every aspect of the hotel,” Carvell included.