Chase and IHG Extend Credit Card Partnership Through 2036
InterContinental Hotels Group and JPMorgan Chase announced today an extension to their partnership for co-branded IHG One Rewards credit cards in the US. The new agreement means that Chase will continue to issue IHG cards at least through to 2036.
IHG reported $39 million in profit from credit card fees 2023. The company expects to double that in 2025 and to more than triple by 2028, and with continued growth anticipated in the years beyond. As part of the new agreements, upfront cash inflows totaling $137 million, pre-tax, are expected to be received over the coming months as part of IHG’s cash flow, and will be recognized within fee income over the term of the new agreements.
IHG also revealed in a press release that the IHG One Rewards program is on track to have approximately 145 million members globally by the end of the year. 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 around ten 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. Loyalty penetration has also significantly increased, with members now responsible for over 60% of room nights globally in 2024 and approaching 70% in the Americas.
IHG One Rewards co-brand credit card holders stay even more frequently and spend more in IHG hotels. In 2023, following the update of US card products alongside the relaunch of the loyalty program in the prior year, new card accounts reached record levels and saw double-digit percentage growth in total card spend. This has continued in 2024, such that compared to pre relaunch levels two years earlier, new accounts are up by over 60% and total card spend is around 30% higher.
Based on the information provided in the press release, it doesn’t seem like we’ll see any major changes in credit card offerings, or welcome bonuses.
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