IHG Hotels & Resorts has revealed it intends to grow its Vietnam estate by 50% in the next two years – and introduce four new brands to the market – as it continues its recovery from the global pandemic.

Although lockdowns, travel restrictions, closed borders and social distancing are still having a major impact on the hospitality industry, IHG believes there is plenty of reason for optimism, and that expanding its portfolio in the Southeast Asian country is an exciting prospect.

“We have a strong desire to continue to thrive in Vietnam and are growing our estate by 50% over the next two years,” revealed IHG’s Serena Lim, Vice-President, Development – South East Asia & Korea.

“To achieve this, we will build on the strong reputation and award-winning properties we have in the luxury and lifestyle sector. We know that our Six Senses and InterContinental brands are already much loved in the country, just as they are across the globe, and we now want to expand further in the mid-upscale space.”

With nearly 6,000 hotels worldwide, and 16 hotel brands, IHG has an impressive foundation on which to achieve growth, despite the challenges of Covid-19.

And Lim explained that the company intends to introduce three of its much-loved brands to Vietnam over the next two years in the form of Regent, voco™ Hotels, and Hotel Indigo.

“We are so excited to be close to bringing all three of these fantastic brands to this market,” said Lim. “I think it really shows how much we value Vietnam, and its communities, as an incredible nation that we really want to be part of.

“I’m proud to say we will be opening Regent Phu Quoc, which will be our first new-build Regent since we acquired the brand – so quite a moment for us, really.

“Then there is voco – our upscale brand which will open its doors in the coastal town of Danang. Since we launched voco in 2018, it’s grown to be in more than 20 countries, through over 50 signings and openings. We are progressing well against our aim to have 200 voco hotels within 10 years since launch – and having great examples of the brand, such as the hotel we’re opening in Danang, will only add to its feel-good factor.

“And it’s also with great anticipation that we’re launching Hotel Indigo in the country. Hotel Indigo Saigon The City will be located in District 1’s Ly Tu Trong Street. You couldn’t wish for a better neighbourhood, and we can’t wait to become part of its community!”

IHG also intends to grow its other market-leading names in Vietnam, which have already been such a hit with domestic and international visitors.

One of the world’s largest upscale brands, Crowne Plaza, continues to grow in the country, with the opening of Crowne Plaza Phu Quoc Starbay coming soon, and plans for expansion including industrial locations such as Binh Duong, Bac Ninh and Vinh Phuc.

Also on the horizon is our plan of expanding IHG’s world-famous Holiday Inn Brand Family in Vietnam. Our much-loved Holiday Inn Resort concept will debut in the country in the form of Holiday Inn Resort Ho Tram and we know this will quickly become a must-visit destination, especially for families, who can relax and make full use if its fantastic facilities. We’re also working on Holiday Inn Express launching.

Lim also revealed that she was convinced there was a great opportunity to grow in the country’s secondary and tertiary markets, such as Greater Hanoi and Ho Chi Minh.

“We are keen to expand in domestic-led destinations, leveraging IHG’s strength in-country and our local teams to run the business locally, for the local market,” she explained. “We want to grow in industrial areas such as Vinh, Hai Duong, Haiphong and Binh Duong and family-friendly resort destinations including Quy Nhon, Thanh Hoa-Sam Son and Hoa Binh.”

Lim added that the value of IHG’s relationships in Vietnam, and throughout Southeast Asia, is coming to the fore as it continues to develop existing partnerships and build new ones.

“Developing long and trusted relationships is of great importance to us, and we know that our nimble and flexible approach makes us very attractive partners,” she said. “IHG is changing with the times, and our in-country teams are allowing us to have locally relevant solutions for each micro-market. Through this, we deliver results, such as by leveraging the boom in Ho Tram and Nha Trang.”

Rajit Sukumaran, IHG’s Managing Director, South East Asia and Korea, explained that the company’s intention to grow in Vietnam is supported by the pace of recovery in the country, and underpinned by IHG’s global strategy.

“We’re hugely appreciative of the government’s handling of the pandemic,” he said. “All of our hotels in Vietnam continue to welcome guests through their doors, and we are seeing leisure and business domestic bookings continue.

“This again shows us that the growth drivers that we saw before the pandemic are still there, and that the industry will look more similar than different in the future. Prior to 2020, travel and tourism outpaced global economic growth for a decade and hotel RevPAR and the branded market share also grew consistently.

“At IHG, we came through the last year in a strong position and started 2021 with an evolved purpose and a set of clear strategic priorities that underpin our growth ambition.

“We’re focused on building loved and trusted brands, thinking like our guests and owners to strengthen guest preference and deliver strong owner returns, creating a seamless technology experience across the entirety of the guest journey, and caring for our people, communities and planet so that, as we focus on our ambitious growth plans, we also focus on how we grow.

“To that last point, we were all so proud last month when we launched Journey to Tomorrow, our 10-year responsible business plan, which is aligned to the UN’s Sustainable Development Goals and our company purpose of True Hospitality for Good. I am looking forward to seeing this come alive in Vietnam and throughout Southeast Asia.”

Sukumaran added that the land of the Ascending Dragon is a great example of why there is lots to be positive about as the hospitality industry continues on the road to recovery from Covid-19.

“History tells us travel will return and that people will return to their normal habits, and Vietnam has shown us that there’s a route to the other side and lots to be optimistic about,” he said.