Like most hotel groups, is IHG satisfied with 2022 so far?
Eric Viale - After a first quarter impacted by Omicron, we saw a real upturn in business. For almost all hotels, performance was in line with the previous year. if not above those of 2019This year was a very good one for us, with customer numbers close to their pre-pandemic levels and an increase in average prices. This has enabled us to have a very good year.
What part did business customers play in these good results?
Eric Viale - Leisure customers have of course been important in this recovery phase, both in 2021 and 2022. But we can also see thata segment that was buried a little too quicklyThe MICE clientele is well represented in our hotels. Companies need these essential moments when their teams come together. The upturn in this segment began to be felt in the French domestic market from 2021, then this year we saw the return of large international operations. And now we are starting to see incentives from the United States, buoyed by a favourable exchange rate.
However, a number of these corporate events are the result of postponements of events that could not be held in previous years. Will the MICE business still be at the same level once these delays have been made up?
Eric Viale - We need to assess the business generated by these postponements due to the cancellation of product launches or trade fairs, and what comes from 'business as usual'. But we are convinced that our key account customers have returned to a normal cycle of meetings. In view of the demand and bookings already confirmed for 2023, we are optimistic about the MICE segment. Its recovery does not appear to be an epiphenomenon.
Are you just as positive about individual business customers?
Eric Viale - This segment will undoubtedly take longer to recover. Businesses believe that travel should be optimised and justified. Behaviours are changing, stays are fewer, but longer-lasting. Bleisure, a trend we've been hearing about for some time, is now a reality, with these longer business stays often incorporating a leisure dimension. All this gives us great confidence for the year ahead.
With the current energy problems, inflation is a major concern. Will hotel rates continue to rise in 2023?
Eric Viale - The first quarter of 2023 will inevitably be much stronger than the first quarter of 2022, which was impacted by Omicron. So there will be a mathematical effect that will raise the average price of our hotels a little. But we expect stabilisation or a slight increase in this average price.
Let's move on to the presence of IHG hotels in Europe. What is your Group's development strategy, particularly for the region you oversee, Southern Europe, and therefore France?
Eric Viale - IHG's ambition is to continue to grow globally and responsibly in Europe. We have truly three major markets on this continent: the United Kingdom, Germany and France. France is one of the most important markets for IHG in terms of our current presence and future development. As for Southern Europe, we are focusing on four other countries: Spain and Portugal, Italy and the United Kingdom. Turkey.
Which segments are the most promising for IHG?
Eric Viale - We are determined to accelerate in the luxury and lifestyle segments, where we see excellent opportunities for growth. In France, we have a leadership position in luxury with our InterContinental hotels in Paris, Lyon, Marseille, Bordeaux and Cannes, in addition to the Kimpton Paris Saint Honoré. And we can go even further, especially as we are well equipped with our various brands: those we have acquired in recent years, including Regent, Six Senses and Kimpton, but also the Vignette Collection, which we recently launched. In our portfolio, we were missing a "collection" brandIt's easy to set up a high-quality hotel that needs distribution and visibility. This collection is in the process of expanding. We already have Vignette hotels in Vienna and in the Algarve, in Portugal. A Vignette Collection will open in Porto in November. And a number of discussions are under way with luxury hotels to accelerate its growth.
As for your flagship brand, InterContinental or Kimpton Hotels, are they also part of your priorities?
Eric Viale - InterContinental continues to be a brand that is driving our growth, with a hotel expected in Rome in early 2023. InterContinental will also appear in Ankara and Bursa in Turkey, metropolises that will join the InterContinental in Istanbul. And that's in addition to other projects in Montenegro and Crete. As for the Kimpton lifestyle brand, we are already present in Paris, Barcelona and recently in Majorca in Southern Europe. While the very fine Kimpton hotels we have in the UK should drive customer demand for this lifestyle offering, several projects, which I can't talk about yet, are close to being signed.
At the same time, is one of your latest brands, voco, surprising you with its ability to expand?
Eric Viale - Between its launch and where we are today, it is, I believe, the fastest-growing brand in the history of the industry. We are proud of its global growthwith a strong presence in the UK, hotels in Paris and Strasbourg in France, and in Milan and Venice-Mestre in Italy, a great project in Brussels. I'm a great believer in its growth in Southern Europe, where you find many top-of-the-range hotels that need the support of a major group for their distribution and visibility.
After a period of latency, your Hotel Indigo brand now seems to be back on track.
Eric Viale - We had to figure out how to present it, how to bring this boutique brand that emphasises neighbourhood life. These things resonate even more today than they did yesterday, and I'm a great believer in its potential. in all these Southern European cities with their rich heritagewith lively neighbourhoods. If I look at the growth of this brand in Italy, we're in a position to be present in all the cities with character, such as Rome, Milan, Venice, and soon Florence. In Spain, in addition to Madrid, we will soon have a second Hotel Indigo in Barcelona. As for France, it took us a while to establish this brand after opening in Paris. But we now have one Hotel Indigo in Cagnesanother is expected at Bordeaux. One thing's for sure: the brand is growing.
However, your IHG group is also renowned for its classic brands such as Holiday Inn and Crowne Plaza. How are these brands evolving?
Eric Viale - For our mainstream brands, the main focus has been on the quality of our hotel portfolios, with structuring projects in which we have involved our owners. Over the last few years, we have committed ourselves to deploying a new generation of rooms at Holiday Inn Expressnow in place in all establishments. At Holiday Inn, a new open lobby concept, adapted to new consumer habits with its multi-functionality for an informal business meeting or a moment of relaxation, has been integrated into nearly 98 % hotels. As for Crowne PlazaThis brand has also revolutionised its approach to public spaces, which have been redesigned for greater flexibility throughout the day, in response to the hybrid way in which people work.
Do these classic brands have as much room for growth as your luxury and lifestyle brands?
Eric Viale - They still have a lot of potential in Southern Europe, since they can reach both major cities and secondary towns. One example is Holiday Inn Express, which is expanding rapidly on the Iberian Peninsula and in France. In the IHG to open 18 new stores in France in the near future8 are Holiday Inn Expresses, for example in Ajaccio, Arcachon, Caen and Reims. Now that we have more than 60 establishments in France, our strategy is to continue to strengthen our presence and cover the entire country.
In addition to the development of your hotel portfolio, this year has also seen the IHG Group revamp its loyalty programme, now called One Rewards. What are the benefits for business travellers?
Eric Viale - Through this major project, we wanted to review our entire programme to make it more competitive. For example, we have the most competitive statuses in the industry in the number of points offered per night. Another of its competitive advantages has been the introduction of real flexibility in the use of points to match expectations, which can differ depending on the type of stay. For example, a customer will be asked on arrival whether they would prefer to earn points or have a free breakfast. For example, a business traveller, if his company covers breakfast, may decide to earn points for his stay, and then, when travelling with his family, receive F&B credits instead, or take advantage of an upgrade or access to the club lounge. The application developed for this programme facilitates this flexibility. In another development, we have created intermediate levels between statusesThis is a unique approach in the hotel industry. It's a unique approach in the hotel industry.
Another current concern in the age of sobriety is where IHG stands in its energy transition.
Eric Viale - I would like to remind you that IHG announced before the covid its "Journey for Tomorrow" commitmentwhich covers several aspects of CSR, from diversity and inclusion to environmental impact, including energy. Even before the crisis, we had set targets for reducing energy consumption by hotel. We had also developed tracking and reporting tools with a platform that allows hotels to compare their consumption with a panel of similar hotels. This enables them to identify best practices and areas for improvement, and to define their action plan. IHG has also launched its "Greener stay" programmeThe IHG Rewards programme gives guests the option of choosing whether they want their towels changed every day or whether they require a particular room service, with an incentive in IHG Rewards points to encourage sustainable consumption.
Is your involvement in CSR essential for your corporate customers?
Eric Viale - When we work with major international accounts, there is always a section in their specifications concerning what IHG does for the environment. This a criterion of choice. Through the tools we have put in place and our Journey for Tomorrow commitment, we are well placed to answer these questions. A lot has already been done, but we need to continue. Our aim is to create a new zero-carbon or low-consumption room by 2025. Our design and engineering teams are already working on it, and it will gradually be incorporated into the new room concepts we develop for our brands.
