Asian Hospitality caught up with InterContinental Hotels Group Chief Development Officer Jim Anhut at the company’s annual convention…

How has the recession affected IHG’s brands?
While we’ve seen a lower deal volume, we have still signed a deal a day lately, which is encouraging. It shows that they have trust in our brands and they want to commit to our brands. Financing is the lifeblood of the hotel industry – everything slows down without it. People are still cobbling deals together, maybe with more equity than they required before, maybe with a little more commitment and little different deal with the lenders. But they are getting done. There were a good number of projects financed before the credit crisis. We have a 125,000-room pipeline in the Americas.

How has the construction pipeline been affected?
We’ve had some conversions come into the system that require renovation. We’re seeing a little bit of an uptick in conversions in this environment right now, where you may have had a mixed-use project with a very high-end, well-built condominium project being converted to Staybridge Suites. We’ve seen other non-hotel uses, like an office building, being converted. We’re also seeing an uptick in independent hotel conversions. A lot of independents are wishing they had a brand, so we’re seeing more of that.

Is there any expansion going on in the Indian market?
We do have an ownership interest from Americas and US owners. We continue to monitor that market for opportunities. There is activity in India – obviously not as prolific as other areas, but you can’t ignore the potential of that market. You don’t have to look too far down the road to realize the potential of the growing middle class. We’ve got some business partners in India. We recognize the energy of the market and it’s pretty exciting. Development will come in time just for the very fact that there’s a growing, viable market and a billion-plus people who moved themselves to a more industrial and business climate. It’s exciting to watch.

What drives Indian hoteliers to your brands?
I think what drives anyone to an IHG brand is performance. Performance is the be-all end-all for being in business in general. Then you move on to things such as legacy and history, and relationships and support elements that are provided. Holiday Inn was one of the founding sponsors of AAHOA. We were right in there as they were growing. I think we’ve been rewarded because of that relationship and that commitment early on. Our ownership, especially with the Asian-American owners, is in the second generation and it’s pretty exciting to think about. We are an advocate of the small business owner, we’re the advocate of family business. It’s subtle, but I think it’s recognized by our ownership. They have a culture with deep family values, and I think they appreciate the steps that we take to help them perpetuate this family business.