IHG chief remains coy, but talkative, on rumored IHG sale

Discussion in 'IHG | Rewards Club/Ambassador' started by uggboy, Aug 7, 2014.  |  Print Topic

  1. uggboy
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    uggboy Gold Member

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    IHG chief remains coy, but talkative, on rumored IHG sale

    Starwood or Wyndham are seen as potential buyers of IHG right now, it's rumored.
     
  2. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    “Let’s be honest,” he told the FT, “if there is an alternative approach, I can assure you the board would look at it.”

    He added this, to UK's The Telegraph, "We're a public company with a very experienced board and chairman, and if there was an approach that was value creating for shareholders of course we would look at it.
    Seems to me they'd be neglecting their duties to the owners of the company if they didn't.
     
  3. uggboy
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    uggboy Gold Member

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    While shareholders may want a sale, right now is a good time, but on the other hand IHG is very strong and it's growing, it could stand by itself and yes, it has been very lucrative for shareholders to hold off any sale in the past, but with a "right now, sell fast" approach, there could be a new owner on the horizon.
     
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  4. daninstl

    daninstl Gold Member

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    Please, please, please don't let it be Wyndham they will ruin this hotel chain and points program. It would be like Acer computers buying Apple.
     
  5. WilliamQ

    WilliamQ Gold Member

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    If I have to pick, I would prefer SPG.
    SPG knows how to run a program but I felt their properties are a little focused on the mid to higher / luxury end with little offerings on the lower scale.
    If SPG acquires IHG, they would have a comprehensive offering that puts them on great competitive grounds against other giants like Hilton
     
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  6. WilliamQ

    WilliamQ Gold Member

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    Much as we would like to think that business is about its customers, this is no longer true.
    They may claim so but ultimately, it is all about profits.
    In fact, more and more management are focus on short term results (think quarterly / annual reports) and fewer are willing to brave the investor's displeasure and hold out (invest) into longer term initiatives / strategies.
     
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  7. Terry Yap

    Terry Yap Gold Member

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    I agree that SPG may be a better candidate to grow IHG, i hope they keep the Point Breaks though ! :p
     
  8. daninstl

    daninstl Gold Member

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    I've been thinking about this and doing some amateur research. I think that Apollo Global Management will buy them out eventually. IHG already has a partnership with Great Wolf Lodge which Apollo bought in 2012. Apollo already owns Ceasar's and Norwegian Cruise Lines. Ceasar's is big in Vegas where IHG is somewhat weak. They have had investment partnerships with Wyndham and loaned them $1 Billion in 1999. Apollo like real estate and hotel or resort type properties. It's a good fit even if I'm not crazy about the idea. Just my humble opinion.
     
  9. Terry Yap

    Terry Yap Gold Member

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    thanks for the analysis, not too amateurish if you asked me...;)

    so we may have a chance to redeem IHG points for Norwegian Cruise Lines cabin rooms on cruise trips in future :rolleyes:
     
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  10. londoncalling

    londoncalling Silver Member

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    Remember though that ICHG has pretty much sold off all their real-estate holdings.
     
    Last edited: Sep 17, 2014
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  11. daninstl

    daninstl Gold Member

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    It would be nice to redeem IHG points for cruises but it would most likely be a poor value like Hhonor points for cruise gift card redemptions (480,000 hh points = $1,000). You'd think that the cruise line would just want you to get on the ship so you could spend more cash on liquor and excursions though.
     
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