IHG credit cards are reinforcing IHG Hotels & Resorts’ position as a leader in the hospitality industry with extended co-brand agreements in the United States.
Effective immediately, the new partnerships, including the continued collaboration with JPMorgan Chase Bank, N.A. (Chase), are set to run through 2036. This milestone marks a significant step in strengthening the IHG One Rewards program and driving both guest loyalty and revenue growth.
The co-brand credit cards play a pivotal role in boosting IHG’s global loyalty program, offering members unique benefits and enhanced engagement opportunities. These credit card agreements not only deepen customer relationships but also create ancillary fee streams for IHG. With the introduction of these new agreements, IHG expects substantial revenue growth, projecting a threefold increase in fees by 2028 compared to 2023 levels. The surge will be driven by expanding credit card usage, new account openings, and the continued growth of the IHG One Rewards membership base.
Strengthening Guest Loyalty and Engagement
The IHG One Rewards program is on track to reach approximately 145 million members globally by the end of 2024. Loyalty members have proven to be key drivers of hotel revenue, spending around 20% more and being 10 times more likely to book through IHG’s direct channels compared to non-members. In the Americas, loyalty penetration has climbed to nearly 70% of room nights in 2024, underscoring the program’s growing impact.
Reward Night redemptions have also surged, growing by 15% year-over-year in the first half of 2024, reflecting strong member engagement. Co-brand credit card holders, in particular, are staying more frequently and spending more at IHG properties, with new card accounts up by over 60% and total card spend rising by 30% compared to pre-relaunch levels.
Financial Gains and Future Growth
Under the new agreements, IHG will receive upfront cash inflows of $137 million, which will be recognized over the agreement’s term. These funds, combined with increasing fee revenue, will contribute significantly to IHG’s financial performance. In 2023, IHG generated $39 million in operating profit from co-brand credit cards, a figure expected to double by 2025 and triple by 2028.
This financial growth aligns with IHG’s broader strategy to expand ancillary products and fee streams. The co-brand program’s success is complemented by the ongoing expansion of IHG’s hotel portfolio, further enhancing its ability to deliver value to guests and hotel owners alike.
Commitment to Long-Term Value Creation
Elie Maalouf, CEO of IHG Hotels & Resorts, emphasized the importance of these agreements: “We are delighted to continue our partnerships to provide co-brand credit cards in the US. The new agreements will create more opportunities for customers to engage with IHG and our award-winning loyalty program, further strengthen IHG’s enterprise and the System Fund for the benefit of our hotel owners, and drive significant shareholder value.”
IHG’s continued collaboration with Chase and other partners underscores its commitment to delivering innovative solutions that benefit guests and shareholders while setting a benchmark for loyalty-driven growth in the hospitality industry.
