IHG boosts upscale stays market

IN December, luxury hospitality brand Kimpton marked its debut in Malaysia with the opening of Kimpton Naluria Kuala Lumpur.

Situated in the TRX business hub, the 466-room hotel showcases the brand’s distinctive, design-forward style, blending elegant sophistication with playful, personalised experiences.

This launch is part of IHG Hotels & Resorts’ ongoing expansion in the luxury and lifestyle segment. This includes upcoming openings like InterContinental Penang Resort, Regent Kuala Lumpur and InterContinental Kota Kinabalu.

IHG is placing greater emphasis on its luxury and lifestyle category, with 42% of the group’s planned openings in South-East Asia and South Korea falling into this high-end segment.

This strategic move aligns with the company’s broader global initiative to strengthen its position as a leader in the luxury space.

Vivek Bhalla, managing director for South-East Asia and South Korea at IHG, highlights global consumers’ evolving preferences, who now seek unique, bespoke and authentic experiences.

“Today’s consumers increasingly express themselves through the brands they choose, making IHG’s luxury and lifestyle offerings particularly well-suited to meet these demands,” he tells StarBiz 7.

The expanded portfolio of luxury properties will complement and enhance the group’s existing brand portfolio.

“We have a diversified portfolio of brands with a large number of hotels in the premium and mainstream categories, so luxury and lifestyle rounds it out nicely.

“From a business perspective, this diversification also enables us to better generate returns for our real estate owners.”

In Malaysia, IHG has seven hotels in the pipeline, including four luxury and lifestyle properties.

“Based on industry reports and benchmarking, only 8% of the hotels in the country are in this space, so there’s a clear opportunity for us here,” Vivek says.

The group is optimistic about the local tourism industry, especially as the Visit Malaysia 2026 campaign kicks into gear.

With aims to draw 47 million visitors, the Budget 2026 announcement of a RM700mil allocation for the tourism sector to enhance connectivity, flight charters, infrastructure and cultural heritage promotion is an encouraging sign for IHG.

“Year-over-year, visitor arrivals have gone up 14%, so Malaysia is an important market for us based on the long-term tourism potential.

“We will be bringing in brands in line with that potential to provide more experiences to customers,” he adds.

To connect with the region’s increasingly discerning travel consumers, hotels need to be at the forefront of rapidly evolving demands and emerging trends.

The group’s diverse range of distinct brands allows it to curate tailored experiences and offerings, meeting various niche expectations and providing a competitive advantage.

“Today, hotels and resorts are seen as destinations in their own right,” says Vivek.

Alongside the rise of multi-generational travel, consumers in the region increasingly prioritise health and wellness in their hotel experiences, he notes.

“Wellness has evolved beyond just a gym and spa – it’s now a comprehensive, 360-degree approach that includes sleep quality, nutrition, fitness and authentic cultural enrichment.”

Wellness-oriented brands under IHG reflect this increasingly holistic view of well-being.

For instance, luxury brand Six Senses’ strong focus on rejuvenation and reconnection is expressed through unique locales, engagement with local communities, and programmes that weave together health, nutrition and sustainability.

Another growing priority for customers is culinary offerings, with more travellers planning trips around food experiences, Vivek observes.

This presents an opportunity for the group’s brands.

“Kimpton has a strong food and beverage play, while Hotel Indigo properties incorporate their neighbourhoods’ cuisines into menus,” he says.

IHG’s extensive and diverse network of hotel brands across the region also makes it well-positioned to capture tourism growth in Malaysia.

“The key feeder markets for Malaysia are Singapore, Indonesia, India and China.

“We have a large presence in those markets, so consumers will already have had touchpoints and experiences with our brands. As a result, we are able to funnel that demand when they come to Malaysia,” he says.

As the group accelerates its expansion, particularly in the luxury and lifestyle segment, recruiting talent remains one of the industry’s biggest challenges. Vivek anticipates that the IHG’s openings in 2026 will require at least 1,000 new team members.

“The reality is that we are a 24/7 business, and finding people that can provide excellent guest experiences is not easy,” he says.

Education and career development initiatives, such as the IHG Academy and Journey to GM programmes, actively create a strong value proposition for employees.

A great stay is all about the little details that make you feel special, says Vivek. For some, it’s the seamless and subtle touches – like finding your favourite drinks in the minibar or having servers remember your usual order at the restaurant.

A comfortable night’s sleep is essential, along with plenty of local food choices. Activities and programmes that connect you to the local area and community can also make your experience truly memorable, he adds.

“If they can throw in a culturally immersive experience, that to me caps off a great guest story.”