IHG CEO Touts Record Pace of Converting Buildings to Its Hotel Brands
Photo Credit: Elie Maalouf, the CEO of hotel group IHG, waves to IHG owners at a conference in 2024. IHG Hotels and Resorts
Skift Take
"Here's a mostly empty office building that we want to turn into a cool hotel" is, in 2025, an easier sell to lenders than "Here's an empty lot that we want to turn into a cool hotel." That's true because of high interest rates and construction costs.
IHG Hotels & Resorts is betting big on hotel conversions to fuel its growth, as property owners increasingly look to switch their existing buildings to the group's brands amid tight construction financing.
Conversions represented half of IHG's new hotel signings in 2024. The trend marked a significant shift from pre-pandemic levels when new construction made up about 70% of IHG's pipeline.
"We've got more conversion-friendly brands like Voco, Vignette, and Garner than before," said CEO Elie Maalouf in a Skift interview on Tuesday.
Why Conversions Are HotIHG — which operates 20 brands including Holiday Inn and Avid — recently shifted its development emphasis to conversions. The change came as traditional hotel construction faced headwinds.
While travel demand remains broadly strong, financing for new hotel construction remains harder to secure tha
