Intercontinental Hotel Group Isn't Too Worried About The London Riots

Discussion in 'IHG | Rewards Club/Ambassador' started by uggboy, Aug 10, 2011.  |  Print Topic

  1. uggboy
    Original Member

    uggboy Gold Member

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    Intercontinental Hotel Group Isn't Too Worried About The London Riots:confused:

    The thousands of rioters currently tearing through London (and other parts of the country) don't seem to be a concern for UK-based Intercontinental Hotel Group.
    The international brand, which launched a $1 billion Holiday Inn makeover, and is custom-tailoring an entirely new brand for their fastest-growing market, China, is too busy celebrating an unpredicted 23% company-wide earnings boost for the first half of 2011.

    CEO Richard Solomons, who spoke to Bloomberg Television yesterday, shrugged off concerns about the US economy. Additionally, Solomons sees the riots in London as a "short term" setback, and emphasizes the long-term major market trends. In plain English: there will always be demand for mid-scale hotels.
    Solomons gave one explanation for the company's success in the first six months of 2011:

    "The hotel business is long term game. So you've got people who are invested in the long-term and they're not necessarily worried too much about the short term. But even if there is a downturn, our business model, and the fact that the core of our business is in that mid-scale market...we are actually well-placed to deal with the market if there is a downturn.
    We saw leisure business grow and we're still seeing it. So people are just traveling more; it's almost a fact of life now."

    So far, no English hotels have reported damage, despite the fact that major department stores have lost thousands of pounds in stolen goods.
    sobore likes this.
  2. UA191

    UA191 Silver Member

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    IHG is a highly sustainable brand. They offer low end, mid level, and higher quality hotels. In many parts of the world, they own the market simply because of the brand recognition. I wouldn't be surprised if their profits grew another 20% by this time next year.
    uggboy likes this.

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