Wise to franchise

Amith Khanna, Head of Franchise, IMEA, tells TTN readers all about the franchise model of hospitality and how it is helping IHG grow its brands exponentially in the region.

What is IHG’s primary motivation behind placing a strong emphasis on franchising in the hospitality industry?

Our interest in exploring franchise opportunities in the region is driven by an increasing demand for franchise model from various owner segments. The franchise model specifically caters to mature markets or where the owners have strong capacity and credentials in managing hotels and brands to the highest standards. It also works in the cases where the owner has the option to engage a third-party operator. As markets across IMEA such as Dubai, Abu Dhabi, Riyadh, Jeddah and India gain momentum and evolve, we are increasingly confident in entrusting our brands with strategic owners.

In line with market demands, we are also open to developing customised agreements to include specific modifications when required.

Can you provide an overview of the current size and scope of IHG’s franchise estate in the IMEA region?

Currently, we have over 50 hotels in our franchise portfolio across 14 countries in IMEA. We also have over 25 franchise hotels in our pipeline which are due to open in the next 2 to 3 years.

As we sign and open more franchise hotels in the coming months and years, we expect these numbers to increase notably.

In what ways does IHG leverage its global reach while maintaining a strong local presence in franchise operations?

Given that more than 80 per cent of IHG-branded hotels, globally, operate under franchise agreements, we have industry leading experience and expertise to offer franchisees including our global support network, integrated distribution, technology resources and marketing initiatives that are equally leveraged locally.

Additionally, IMEA is part of the Europe, Middle East, Asia & Africa (EMEAA) operating region which is headquartered in the UK. This gives us ease of access to the franchise Centre of Excellence in the UK which has established tools and resources to maximize performance of franchise hotels in our portfolio.

Moreover, we have a dedicated franchise support structure for IMEA which provides hands on support to our franchise owners and ensure owner returns across our entire franchise estate in the region.

What are the key advantages that hotel owners and investors can expect when partnering with IHG under a franchise model?

When partnering with IHG, hotel owners have the benefit of leveraging our local and global expertise in delivering exceptional hospitality experiences for guests and driving significant owner returns. Our partners benefit significantly from our well-established brands, robust distribution systems and strong loyalty programs as well as learning and development opportunities that we are able to provide colleagues across our franchise estate.

What strategic plans does IHG have for expanding its franchise presence in the IMEA region in the coming years?

As a company, our ambition is to deliver industry-leading growth in our scale, enterprise platform and performance, doing so sustainably for all stakeholders, including our hotel owners, guests and society as a whole. To do that, while we remain steadfast on our management expertise, we are expanding our franchise offering to capitalise further on our growth potential across IMEA.

We also have a dedicated franchise team based locally who are subject matter experts for operations, commercial, revenue management, learning and development and have significant expertise and experience in supporting our franchise business.

We are looking at opportunities across IMEA with over 20 plus new countries that are being targeted along with key markets that are maturing with franchise demand. With tailor made franchise solutions based on ownership capacity and capability, we are set to significantly grow our portfolio in the coming years.

* Meet IHG Hotels & Resorts on stands S5-212, S8-210 and several hotels exhibiting