In HM’s 2023-2024 Hotel Development Outlook, IHG Hotels and Resorts, Director of Development – Australasia and Pacific, Cameron Burke, shares an insight into recent development activity at the major hotel group.
There’s no doubt that prevailing macroeconomic headwinds have suppressed the unprecedented level of growth previously sustained by some quarters of the market.
However, hotels remain an extremely attractive asset class for investment serving as an inflationary hedge – with investors measuredly adjusting their return thresholds in order to effectively deploy capital.
The confluence of these factors has resulted in a spate of recent development activity for IHG.
At HM’s AHICE 2023 event, we were incredibly excited to announce the signing of Crowne Plaza Fiji Nadi Bay Resort and Spa, a 324-key conversion that will set a new standard for Crowne Plaza.
It has also been incredibly pleasing to see the high level of demand for our Hotel Indigo brand in the upscale lifestyle segment. Pro-invest will bring eagerly anticipated conversions to Australia’s largest capital cities this year, with both Hotel Indigo Sydney Potts Point and Hotel Indigo Melbourne Flinders Lane opening soon.
IHG’s broader estate continues to develop courtesy of strong brand resonance across our entire portfolio. We’ve had world-class (and some world-first) examples of the Kimpton, Voco and Vignette Collection brands opening in Australia over the past couple of years, and we’ll be preparing to welcome the luxury wellness brand, Six Senses, to our shores in 2025.
Of course, our core brands InterContinental, Crowne Plaza and Holiday Inn continuing to remain attractive to investors looking to enhance owner economics – with InterContinental Auckland, InterContinental Lifou, Crowne Plaza Melbourne Carlton, Holiday Inn and Suites Geelong and Holiday Inn Dandenong all expected to open in 2023.