IHG CEO Elie Maalouf on the strategy driving the hospitality giant’s success

In a conversation with Gulf Business’ editor Neesha Salian, IHG Hotels & Resorts CEO Elie Maalouf reflects on his leadership journey, IHG’s expansion in key global markets, and the role of partnerships in driving success.

From capitalising on emerging markets to leveraging technology and sustainability initiatives, Maalouf shares insights into the company’s strategic vision and what lies ahead for the hospitality giant.

Elie, you’ve now been CEO of IHG for nearly a year and a half. What was your mindset going into this role? What were the key areas you focused on in those first few months, and how do you assess the progress after this period?

I’m fortunate to have stepped into a role with a very solid foundation. This wasn’t a turnaround situation, and the business was performing well. It was a natural succession, and I had been running the largest part of the business for eight years and serving on the board for six, so I couldn’t exactly say, “This isn’t my responsibility”. The company was in a good place, but the industry is dynamic, and your strategy needs to be flexible to keep up with that.

My first step was to assess where we were by engaging with our people, hotel investors, shareholders, and customers. The goal was to identify what we were doing well, what could be improved, and how much potential the company had. What became clear during this process is that the opportunity before us is far greater than I had initially realised. There’s so much untapped potential that will take time to realise fully. It’s not something that will be completed in my tenure – it’s a long-term journey.

From there, we started asking, “How do we get there?” We needed to identify what we were doing right, what we had to change, and where to focus. One of the key areas we realised we had to approach differently was our strategy for emerging markets, particularly in the Middle East, India, and Southeast Asia.

Looking at emerging markets, what specific steps did you take to capitalise on these regions?

We leveraged the lessons we learned from our success in China, where we grew rapidly over 50 years. We asked ourselves: how can we replicate this in other emerging markets, but also in mature markets where we still have low brand penetration, like Japan and Germany? These countries have strong tourism and business travel, but there’s still a significant opportunity for brand growth.

In the Middle East, India, Southeast Asia, Japan, and Germany, we’ve seen a strong pipeline of hotel openings, which is a good indicator of future growth. For instance, our pipeline in India is set to double the number of hotels we currently have there.

In Japan and Germany, we are also seeing 50-100 per cent increases in pipeline growth compared to our existing portfolio. The Middle East is another strong focus, where we’ve grown our pipeline to over 50 per cent of what’s currently open, and we have nearly 150 hotels open with another 100 under development.

That’s a significant amount of growth. What do you think has driven this success, particularly in such diverse markets?

The key to success has been a combination of leadership, strategic clarity, and alignment across the entire organisation. The company was already motivated, and there was no real sense of stagnation. However, we needed to redefine our ambition. We needed to ask, “How far can we go in the next five years, and what will it take to get there?”

We rallied the team around a clear vision and set specific objectives. This gave people a sense of purpose and ownership in achieving our goals. Everyone, from senior leadership to the front-line staff, plays a role in growing our brands, expanding our market share, and ensuring the success of our loyalty programmes and ancillary services. Leadership, ultimately, is about creating that vision, securing the right resources, and fostering a culture that supports everyone in achieving those objectives.

We also identified and reinforced four core cultural behaviours that were essential to making this vision a reality. The hospitality industry is collaborative by nature, and without strong teamwork, none of this would be possible. Whether it’s a team in operations, marketing, or development, we all rely on each other to succeed.

So, as you look at the specific needs of the Middle East region, what’s required to continue driving success here and build on the momentum IHG has established?

The Middle East is a region full of potential. The infrastructure is growing rapidly, and there’s a young, dynamic population driving both business and leisure travel. The investments being made into the region’s tourism and business sectors are impressive, and that growth is only going to continue.

Our position is strong — we are the largest hotel group in the region, and we’ve been here for over 50 years. We were the first InterContinental opened in Beirut in 1963, and we’ve continued to expand our footprint ever since. But as we look ahead, we’ve had to reassess our brand portfolio and tailor it to meet the specific needs of the diverse markets here. For example, the strategy for growing our presence in Mecca and Medina is very different from the strategy in Riyadh or Dubai. In cities like Dubai and Doha, we need to focus on luxury and lifestyle brands, while in places like Riyadh and Jeddah, business-oriented properties are more critical.

We’ve already seen strong progress. We’ve introduced new brands into the region, such as Kimpton in Jeddah and Vignette in Dubai, and we continue to invest in long-term growth. This approach will ensure that we remain a leader in the region, capturing the ongoing growth and partnering with investors who share our vision.

What role have partnerships played in IHG’s growth in the region? You’ve worked with partners like Aldar, for instance. How important are these relationships to IHG’s strategy moving forward?

Partnerships are critical to our success in the region. We’ve worked with strong, long-term partners like Aldar to help us expand our footprint and ensure that we have the right expertise and local insight to drive growth in these markets. It’s a key part of our strategy to work with investors who are aligned with our vision and who can support the type of growth we want to see.

Whether through local partnerships or institutional investors, these relationships allow us to scale our business more effectively and ensure we’re well-positioned to lead in these rapidly growing markets.

If you could tell me a little bit about these partnerships, and how do you go about deciding that these are the right partnerships for you, particularly in this region? What is the strategy?

That’s the essence of what we do. We’ve partnered with hotel investors around the world since the first day of this company. Unlike some of our competitors or other successful companies in this industry, our heritage isn’t in hotel ownership. Our focus has always been on managing and franchising for other investors. The core of our company’s culture is working closely with hotel investors, and building strong partnerships.

My background is in real estate development, so I have a deep understanding of our investors. I work hard to ensure that the rest of our teams are aligned with them. Everything we do is about ensuring that our partnerships benefit not just our guests, but our investors, who are putting up significant capital to develop, operate, and grow IHG brands. This trust is not just about numbers and technology; it’s about personal relationships. When I’m in markets like Dubai, I spend the majority of my time meeting with hotel investors. The same goes for Doha and Saudi Arabia.

It’s a relationship business, and I lead by example, ensuring my team follows the same approach.

How do you maintain consistency and quality across these managed franchises? How tough is that? I’m sure it’s a big challenge, but I’m sure you guys do it well.

It’s not easy, but if it were, everyone would do it and be successful. We’ve been doing this for a long time. For our mainstream brands like Holiday Inn and Holiday Inn Express, consistency is key. We ensure the same experience across locations—same room design, features, breakfast, etc. People want predictability, especially for short stays.

As we move into premium and luxury segments, customers still want consistency, but they also seek delight and surprises. They don’t want negative surprises, but they do appreciate unique experiences. However, some fundamentals remain unchanged: a great night’s sleep, a refreshing bathroom experience, excellent wellness facilities, and quality food. These must always meet a high standard. It’s about balancing the unique, delightful experiences with quality, while also ensuring good returns for our investors.

It’s a challenge, but with decades of experience and strong relationships with both guests and investors, we find that balance.

What are the key trends that have evolved, especially in this region, that have surprised you, and what will lay the foundation for how customer experience changes here?

The trends in this region aren’t drastically different from global trends, but there are some unique aspects. One significant trend here, especially in the Gulf, is the blend of business and leisure. People come to cities like Dubai, Riyadh, or Doha for business, but extend their trips for leisure. The region’s great weather, entertainment options, and diverse attractions make it easy to combine both.

Our job is to ensure that business travellers are at their best when they arrive — whether that’s making sure they get enough sleep, the breakfast they need, or that their meeting rooms are ready. Once they switch to leisure mode, we aim to provide them with a memorable experience. The blending of business and leisure has taken off here, and it’s shaping how we design our properties and services.

The second trend is loyalty. Our One Rewards programme is continuously evolving to be more personalised and customisable. It’s not just about points; members can choose from food and beverage, room upgrades, or other rewards. By the end of this year, we’ll add a chatbot powered by Google to help guests plan their trips using AI. This is all part of our commitment to staying relevant and offering personalised experiences to our loyal customers.

How is the group using technology to enhance services in different areas? I’m sure the investment is huge.

We are investing heavily in technology to improve both operational performance and customer service. For example, we’re rolling out a new revenue management system, Revision, across our hotels. This system uses machine learning and AI to optimise room pricing, helping our hotel investors get the best yield. It’s already being deployed in nearly 3,000 hotels, and by next year, it will be in all 6,500 of our properties. This tool uses data analysis to help revenue managers make smarter decisions on pricing and availability.

On the customer service side, AI plays a huge role in language translation. Whether it’s live voice or chat support, AI helps our teams communicate with guests in different languages, even understanding nuances in the way words are used across cultures. For example, a guest calling from India might speak English, but their language and customs could differ from what a Portuguese-speaking agent would expect. AI helps bridge that gap, enhancing customer service.

When it comes to innovation and new brands, how do you decide what is best for the group? Could you share some examples?

We don’t launch new brands casually. We do it when we identify a gap in the market—when there’s customer demand and a significant number of hotel investors looking to build for that demand. If we’re not present in that segment, and it’s of scale, we move forward. For example, when we launched the Garner brand, we saw a need for a conversion brand in the mid-scale U.S. market—high-quality properties that could join IHG without undergoing a complete overhaul. It’s been a great success, already expanding beyond the U.S. to Europe and Asia.

On the luxury side, we acquired Six Senses because we saw that some guests wanted an even more exclusive and experiential luxury experience than what InterContinental offered. Six Senses has no meeting spaces, is designed for total relaxation and privacy, and caters to customers looking for exclusivity. Our acquisition of Six Senses and our focus on expanding the luxury lifestyle segment have been very successful.

How is the focus on sustainability playing out at IHG?

Sustainability is integral to how we operate and grow our business responsibly. Our “Journey to Tomorrow” sustainability programme focuses on three key areas: people, communities, and the environment.

For people, we aim to create an inclusive, diverse workplace where everyone has the same opportunities for growth and success. We believe in fostering a welcoming culture, which is especially important in a global company.

In terms of community, we’re committed to supporting local communities, particularly in times of crisis, through disaster relief and workforce education.

On the environmental front, we focus on reducing our carbon footprint and energy consumption. We work with our hotels to implement energy-efficient technologies and ensure we’re doing our part to keep the planet welcoming for future generations.

What are your plans for 2025, and what can we expect from IHG going forward?

I’m optimistic about the future. We don’t give quarterly guidance but have long-term confidence in the growth of the hospitality industry. While the global economy faces challenges, particularly with conflicts like the one in Ukraine and the Middle East, other regions like Southeast Asia, the US and Europe are stable, and we see strong growth in the Middle East.
We expect continued growth in key markets, though we remain mindful of the cyclical nature of the industry. We believe that, over the long term, the hotel industry will continue to thrive.

Any three leadership lessons you would like to share with our readers?

I believe leadership is very individual — what works for one person may not work for another. However, there are a few principles I try to follow that might be helpful for others. Here are three leadership lessons that I think are important:

1. Listen and learn continuously
   One of the most important things a leader can do is truly listen and learn. I learn something new every day, and this helps me become a better leader. Even the smallest details and anecdotes contribute to how I understand our business, explain it to others, and make better decisions. It’s crucial to broaden the circle of people you engage with—don’t just rely on your leadership team. You need to hear from all levels of the organisation, because that’s where you’ll find the details that matter. In this business, the details matter a lot.
2. Engage externally and objectively
   It’s important to have conversations with your investors, customers, and competitors. Ask them what you do well, and more importantly, what you need to improve. It’s essential to have the pride to love your business but the humility to recognise that you can always do better. Only when you understand this can you push yourself and your company to grow stronger.
3. Take care of yourself
   The fundamentals of health — wellness, rest, and recovery — are key to leadership success. Some people may function without paying much attention to their health, but for me, it’s a non-negotiable. I need to discipline myself to ensure I’m getting enough rest and taking care of my well-being. Without this, I can’t be my best — and I won’t even be average. Taking care of yourself should always be a priority.