InterContinental to return $1 billion from hotel sales

Discussion in 'IHG | Rewards Club/Ambassador' started by uggboy, Aug 7, 2012.  |  Print Topic

  1. uggboy
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    uggboy Gold Member

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    || InterContinental to return $1 billion from hotel sales ||

    Mmmm! Let's think!

    I would make sure that at least IHG would want to own their flagship properties worldwide, can never hurt to have some owner assets in the group too IMHO.

    This would also make sure that IHG is always represented with their top InterContinental brand in key markets and isn't 100% dependent on management contracts which could [ should the new owners so decide or dispute ] go away.

    There is however one thing they want to please, that's called shareholders, but in doing so, this exposes IHG to unprecedented risks on the way.:confused:
     
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  2. mattsteg
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    mattsteg Gold Member

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    If they only own 10 hotels now, I don't think divesting themselves of the rest exposes them to that much unprecedented risk. They've clearly made the choice long ago that they're not primarily in the hotel ownership business. By not owning the hotels they're more free to reflag, build new hotels, etc. and can perhaps avoid some amount of renovation costs.
     
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  3. I would hope they keep some money in the treasury to muscle up their IT systems. After all they are not only a mangement company but primarily an internet reservation group.
     
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  4. uggboy
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    uggboy Gold Member

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    Agreed, but they have some risk exposure IMHO, especially regarding their " true " flagship properties in gateway cities around the world ie. Hong Kong for example, difficult to see how they would ever regain such a property / location overlooking Victoria Harbour should they ever loose the management contract there.
     
  5. uggboy
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    uggboy Gold Member

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    Spot on! [ Regarding the money they make from the sales, it looks like that shareholders will be the big benefactors, let's only hope they're committed to invest in better IT ]
     

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