InterContinental Hotels Group PLC (IHG) has solidified its position in the loyalty landscape by renewing agreements with key financial services partners, including JPMorgan Chase Bank, N.A. (Chase), to provide co-branded IHG One Rewards credit cards in the US. The new partnerships, effective immediately, extend through 2036 and mark a significant step forward in IHG’s efforts to deepen guest engagement and drive revenue growth.
The co-branded credit cards are a cornerstone of IHG’s award-winning loyalty program, offering members more ways to earn and redeem points while fostering stronger connections with the IHG brand. Elie Maalouf, CEO of IHG Hotels & Resorts, expressed excitement about the long-term potential of these partnerships. “These agreements represent a detailed and strategic review of opportunities to enhance our ancillary revenue streams. They will create more opportunities for guests to engage with IHG One Rewards, drive significant returns for our hotel owners, and deliver meaningful shareholder value,” he said.
Under the agreements, IHG anticipates a significant rise in fee income, with 2023’s $39 million from reportable segments expected to double by 2025 and triple by 2028. This growth will be fueled by expanding credit card usage, a growing US cardholder base, and the continued rise in IHG One Rewards membership, which is projected to reach approximately 145 million members globally by the end of 2024. Loyalty members, who spend around 20% more than non-members, now account for over 60% of room nights globally and nearly 70% in the Americas-a notable increase since the program’s refresh in 2022.
Maalouf emphasised the broader implications of the partnerships: “This collaboration strengthens IHG’s enterprise and reinforces our System Fund, benefiting hotel owners and providing customers with even more compelling reasons to engage with our loyalty program. We’re also exploring opportunities to introduce co-brand credit cards in other markets.”
IHG’s focus on ancillary products, including credit cards, aligns with its medium- to long-term growth strategy. The company is targeting 100-150 basis points of annual fee margin improvement through operational efficiencies and fee revenue growth. These initiatives, already yielding results in 2024, highlight IHG’s commitment to delivering shareholder value and enhancing the guest experience.
With these agreements, IHG not only strengthens its financial foundation but also reaffirms its dedication to delivering exceptional value to its guests and hotel owners alike, further cementing its leadership in the global hospitality industry.
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