IHG Expands Co-Brand Credit Card Partnerships in the US with New Agreements
(IN SHORT) IHG Hotels & Resorts has signed new agreements with JPMorgan Chase and other financial partners to continue offering co-branded IHG One Rewards credit cards in the US, effective immediately through 2036. These agreements aim to strengthen loyalty, drive membership growth, and generate increased revenue streams for IHG. The partnerships are expected to significantly boost fees, with projections for substantial growth by 2025 and beyond. IHG’s loyalty programme continues to expand, with over 145 million global members by the end of 2024, contributing significantly to room nights and revenue. The company is also exploring the potential for co-brand credit cards in other markets.
(PRESS RELEASE) Atlanta, GA, 2024-Nov-27 — /Travel PR News/ — InterContinental Hotels Group PLC (IHG) has solidified new agreements with its current financial services and issuing partners, including JPMorgan Chase Bank, N.A. (Chase), to continue offering IHG One Rewards co-branded credit cards in the United States. These new agreements, which take effect immediately, are set to run through 2036 and aim to strengthen IHG’s loyalty programme while generating substantial long-term revenue streams.
Enhancing Member Loyalty and Driving Hotel Business
The continued partnership with Chase and other financial services partners will deepen engagement with IHG One Rewards members, driving both membership growth and loyalty while increasing bookings across IHG’s global hotel network. The co-brand credit card arrangements provide IHG with a range of ancillary fees in exchange for offering the partners access to its loyalty programme, its customer base, and the use of IHG’s brand assets. These agreements also involve marketing services and the provision of benefits, such as reward points and free-night certificates, for members.
The fees to IHG from the new agreements are expected to significantly increase over the term, with projections for total fees to more than double by 2025 and triple by 2028. This growth will be fueled by the expansion of the US co-brand credit card business, including the increased use and number of card accounts, alongside rising membership and greater loyalty penetration within IHG’s One Rewards programme.
Strong Membership Growth and Revenue Impact
IHG anticipates a robust financial boost, with upfront cash inflows totaling $137 million, pre-tax, expected over the coming months. These inflows will be recognized in fee income over the duration of the new agreements. The IHG One Rewards programme has seen impressive growth, with an estimated 145 million members globally by year-end 2024, reflecting a 10% year-on-year increase in enrolments. Members also contribute significantly to IHG’s revenue, typically spending about 20% more than non-members and generating over 60% of room nights globally in 2024.
Notably, IHG One Rewards co-branded credit card holders have been shown to stay more frequently and spend more on IHG properties. Following a product update and loyalty programme relaunch in 2023, IHG saw record growth in new card accounts and a double-digit increase in total card spending. This momentum has continued into 2024, with new accounts up over 60% and card spend increasing by 30% compared to pre-relaunch levels.
A Long-Term Growth Strategy
Elie Maalouf, CEO of IHG Hotels & Resorts, commented on the significance of the new agreements, saying, “These partnerships reinforce our commitment to enhancing engagement with IHG One Rewards, driving both customer loyalty and hotel performance. The expanded co-brand programme in the US will not only strengthen IHG’s enterprise value but will also significantly benefit our hotel owners and deliver long-term shareholder value. We continue to explore opportunities to expand co-branded card offerings in other markets as well.”
This announcement supports IHG’s broader strategy of driving revenue through ancillary products, alongside operational improvements, to maximize shareholder returns. The company is focused on scaling ancillary fee streams and enhancing loyalty offerings to generate ongoing growth and profitability.
Looking Ahead
As IHG continues to expand its portfolio and further integrate its loyalty programme with co-brand credit cards, the company remains well-positioned to lead the way in customer engagement and enhance the value it offers to both guests and hotel owners. The new agreements signify IHG’s ongoing efforts to build on its strong market position in the US and globally, fostering deeper relationships with guests and partners alike.
About IHG
IHG Hotels & Resorts [LON:IHG, NYSE:IHG (ADRs)] is a global hospitality company, with a purpose to provide True Hospitality for Good.
With a family of 19 hotel brands and IHG One Rewards, one of the world’s largest hotel loyalty programmes, IHG has over 6,500 open hotels in over 100 countries, and more than 2,200 in the development pipeline.
- Luxury & Lifestyle: Six Senses Hotels Resorts Spas, Regent Hotels & Resorts, InterContinental Hotels & Resorts, Vignette Collection, Kimpton Hotels & Restaurants, Hotel Indigo
- Premium: voco hotels, HUALUXE Hotels & Resorts, Crowne Plaza Hotels & Resorts, EVEN Hotels
- Essentials: Holiday Inn Hotels & Resorts, Holiday Inn Express, avid hotels
- Suites: Atwell Suites, Staybridge Suites, Holiday Inn Club Vacations, Candlewood Suites
- Exclusive Partners: Iberostar Beachfront Resorts
InterContinental Hotels Group PLC is the Group’s holding company and is incorporated and registered in England and Wales. Approximately 375,000 people work across IHG’s hotels and corporate offices globally.
Visit us online for more about our hotels and reservations and IHG One Rewards. To download the new IHG One Rewards app, visit the Apple App or Google Play stores.
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For the purposes of the Market Abuse Regulation, the person responsible for arranging the release of this announcement is Nicolette Henfrey, EVP, General Counsel & Company Secretary.
Source: IHG
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