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InterContinental Hotels Group PLC on Monday announced new agreements with existing US partners to continue providing co-branded credit cards. IHG said the new deals with JPMorgan Chase Bank NA, part of JPMorgan Chase & Co, and others are effective immediately, with an initial term running through to 2036. ‘Co-brand credit cards drive further membership and loyalty to our IHG One Rewards programme, deepening guest relationships and delivering more business to our hotels,’ the hotel operator explained. Following the start of the new deals, IHG said it expects total fees from the co-branded cards to significantly increase in the short term, and continue growing over the decade. ‘This growth will be driven by IHG’s and our partners’ ongoing commitment to expand the overall US cobrand credit card business, and the number and usage of card accounts,’ IHG said. ‘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 Windsor, England-headquartered firm also expects upfront pretax cash inflows totalling $137 million ‘over the coming months’ as part of the new agreements. Finally, IHG said the One Rewards programme is on track to accumulate around 145 million members worldwide by the end of this year. Enrolments for the year to date have increased 10% annually. One Rewards co-brand card holders ‘stay even more frequently and spend more’ at IHG hotels, the firm noted. Going forward, IHG said it is already achieving its goal of growing ancillary fee streams, ‘with fee revenue growth and margin improvement from loyalty point sales to consumers’. ‘We are delighted to continue our partnerships to provide co-brand credit cards in the US,’ commented Hotels & Resorts Chief Executive Officer Elie Maalouf. ‘Following a detailed review of the opportunities to grow this important ancillary fee stream, the new agreements will create more opportunities for customers to engage with IHG and our award-winning loyalty programme, further strengthen IHG’s enterprise and the System Fund for the benefit of our hotel owners, and will drive significant shareholder value. ‘We look forward to continuing a close working relationship with our partners to mutually benefit from the growth of the co-brand programme in the US, and we continue to assess the potential for co-brand credit cards in other markets.’ Shares in InterContinental Hotels were up 0.8% at 9,750.00 pence in London early on Monday. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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