InterContinental Hotel Group PLC (IHG), which is the world's leading hotel operator by number of rooms is considering extending its growth through possible acquisitions to come in the next few years. Chief Financial Officer Richard Solomons said “The sky is the limit. We have around 4% to 5% of the world's hotel rooms and 18% of the global pipeline. The sector is in a very fragmented position and we are in a very good place”. He also stated that 2010 recovery trends have been leading to continued growth this year, “as business and leisure travel continues to revitalize”. The prestigious hotel group has seen tremendous growth around the world, and is expecting even more this year at a rapid rate, which is very impressive considering today's economy and the decline in demand for luxury goods.
The hotel group's strong financial position has encouraged the consideration of acquisitions, including possible brands in North America and China. InterContinental's existing brands include Holiday Inn, Intercontinental and Crowne Plaza.
The groups runs over 4,500 hotels and 657,000 rooms world wide and has been benefiting from a significant recovery since 2009, in its more established markets in the U.S. and Europe.
The company has been seeing a substantial rise in revenue since, and future growth seems to be a very realistic goal for InterContinental.
http://online.wsj.com/article/BT-CO-20110215-703410.html
It is interesting to see that InterContinental is thriving given the US economy. Generally, large companies tend to take drastic hits when in a depression. I'd be interesting in finding out how/why InterContinental has been able to maintain profit. Great post Marina.
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