InterContinental Hotels Group signs 4,500 rooms in landmark China deal

InterContinental Hotels Group today signed a landmark deal with Chengdu International Exhibition & Convention Group to manage six hotels in Chengdu and Jiuzhaigou in China’s Sichuan province. The six hotels – two InterContinental properties, three Holiday Inn properties and one Express by Holiday Inn – comprise a total of more than 4,500 rooms.

Chengdu, the strategically-located capital of Sichuan province, is both an emerging powerhouse and a popular tourism destination. It is a fast-developing city that has been named as one of the most livable cities in China and is one of the top-ranked cities for tourism and economic potential.

The Jiuzhaigou Scenic Area, a 45-minute flight from Chengdu, is known for its pristine beauty, with emerald lakes, layered waterfalls, colourful forests, snow peaks and Tibetan folk villages. The area is listed as a UNESCO (United Nations Educational, Scientific and Cultural Organization) World Natural Heritage site.

Andrew Cosslett, chief executive, InterContinental Hotels Group, who was in Chengdu for the signing, said, “This is the biggest single deal IHG has done in China, a country that lies at the heart of our growth strategy. Our brands have a strong foothold in Asia Pacific and Holiday Inn was one of the first international hotel brands to establish a presence there in 1984. This deal marks a major milestone as we move towards meeting our aggressive growth plans.”

The scheduled openings will comprise the following hotels:

In Chengdu City, as part of the new RMB 5 billion (US$620 million) New Century City international convention and exhibition centre, incorporating shopping, entertainment, offices, residences and a golf course:

- InterContinental Century City Chengdu, an upscale business hotel that will combine the latest communication and business technologies, high-end food and beverage options and conference facilities. Scheduled to open in 2007.

- Two Holiday Inn properties offering quality accommodation and business support services. Scheduled to open in 2006.

At the Jiuzhaigou Scenic Area, as part of Jiuzhai Paradise, hailed as the ‘Davos of China’:

- InterContinental Resort Jiuzhai Paradise, an upscale hotel with eight F&B outlets and extensive conference and recreational facilities. Scheduled to open in 2006.

- Holiday Inn Jiuzhai Jarpo, a mid-scale hotel offering business services and spa facilities. Scheduled to open in 2006.

- Express by Holiday Inn Jiuzhai Jarpo, a convenience-sector hotel scheduled to open in 2007.

Chengdu International Exhibition & Convention Group has interests in exhibitions and conventions, hotels, travel agencies and real estate. The group commands an estimated 70% market share for exhibitions and conventions in Chengdu and had total revenues of RMB 2.2 billion (US$265 million) in 2005. The first stage of the New Century City project in Chengdu is scheduled for completion in the first half of 2006.

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