Deals will run through 2036

Intercontinental Hotels Group (IHG) announced it has entered into new agreements with its current issuing and financial services partners to continue providing co-branded IHG One Rewards credit cards in the US. The new agreements, including with JPMorgan Chase Bank, N.A. (Chase), are effective immediately and have an initial term running through to 2036.

Co-branded credit cards, according to the announcement, drive further membership and loyalty to the IHG One Rewards program, deepening guest relationships and delivering more business to hotels.

Total fees to IHG, said the announcement, are expected to significantly increase from the start of the new agreements and to continue growing over the term. This growth will be driven by IHG’s and its partners’ ongoing commitment to expand the overall US co-brand credit card business, and the number and usage of card accounts. This will also be supported by the growth of IHG One Rewards membership and loyalty penetration, together with the ongoing expansion of IHG’s hotel portfolio.

The IHG One Rewards program, said the announcement, is on track to have approximately 145 million members globally by the end of the year, with enrollments to date in 2024 having grown by more than 10% year on year. Loyalty members typically spend approximately 20% more in IHG hotels than non-members and are about 10 times more likely to book through IHG direct channels. In the first half of 2024, Reward Night redemptions grew by around 15% year on year, demonstrating strong member engagement and driving increased returns for hotel owners.

Elie Maalouf, IHG’s CEO, said the new agreements “will create more opportunities for customers to engage with IHG and its loyalty program.” He said the company looks forward to continuing a close working relationship with its partners “to mutually benefit from the growth of the co-brand program in the US.

Image: IHG Courtesy of Loyalty Lobby