by PENG Peng

Consumer associations in Beijing, Tianjin and Hebei have summoned the China operator of InterContinental Hotels Group over membership clauses that allegedly infringe consumer rights, according to a statement released on April 8.

The Beijing Municipal Administration for Market Regulation said the clauses exclude the jurisdiction of Chinese law, require overseas arbitration, restrict consumers' ability to file class actions and disclaim liability for damages.

The three regional consumer associations, citing China's consumer protection law, summoned the company's China operator, a Shanghai-based unit of IHG, and required it to review and amend its membership terms.

Authorities said the clauses mainly fall into two categories: mandatory arbitration and exclusion of litigation under Chinese law, which may limit collective redress; and provisions that could undermine consumers' rights to fair transactions, choice and compensation.

The associations said they will step up oversight of unfair standard-form contracts.

A review by Jiemian News found similar clauses in the loyalty programs of Marriott International and Hilton, including clauses requiring disputes to be handled individually under U.S. law.

Corporate records show the Shanghai-based operator was established in 2004 with registered capital of $13 million. Its legal representative is DANIEL RICHARD AYLMER, and it had 486 insured employees in 2024.

IHG said earlier its Holiday Inn Express brand has nearly 600 hotels open or in the pipeline in Greater China, implying total regional projects exceed 1,000.

In its latest annual results, IHG reported 2025 revenue of $2.47 billion, up 7% year on year, and operating profit of $1.27 billion, up 13%. Revenue per available room rose 1.5% globally, while declining 1.6% in Greater China.

The company operates more than 6,900 hotels worldwide and has nearly 2,300 in its pipeline.

IHG shares fell 2.11% to $132.02 on April 8, valuing the company at about $19.8 billion.