November 2013 Report on the Development of International Hotel Brands in China's Hospitality Industry

  (1) Brand Index Changes

In November, the InterContinental brand index was 90.87, down 3.23 from the previous month, a decrease of 3.4%. Detailed data shows that both user influence and media influence declined, with media influence dropping 2.6 compared to the previous month, while industry influence saw a slight increase. Compared to the same period last year, the InterContinental brand index rose by 37.43, an increase of 70.04%, with all three metrics—user influence, media influence, and industry influence—showing improvement.

(2) Brand Analysis

In November, InterContinental Hotels Group released its third quarter 2013 financial report, which showed excellent overall global performance and improved operating results across all four major markets. The group’s resort hotels in Greater China performed particularly well in the third quarter, with an 18% increase in RevPAR. Meanwhile, the first Hualuxe Hotel & Resorts is set to open in 2014.

To date, InterContinental Hotels Group has opened 200 hotels in Greater China, demonstrating the group’s remarkably strong momentum in recent years. It is projected that by 2025, China will surpass the United States to become the group’s largest market globally. Despite fierce competition, InterContinental has delivered exceptional performance in the Shanghai area, far exceeding the industry average.

In terms of scale, InterContinental leads by a wide margin. However, its development in China still faces numerous challenges, among which service quality and talent are the biggest issues. Data shows that based on the existing nearly 60,000 employees in Greater China, InterContinental aims to provide job opportunities for over 110,000 people in China by 2015. But currently, many only children are reluctant to enter the hotel industry. InterContinental has made considerable efforts in this regard, including establishing an Academy for Excellence where graduates are seamlessly integrated into its hotels, and a General Managers Training Academy to cultivate local senior management talent. These efforts are expected to further foster a positive cycle of talent development for the brand.