InterContinental Hotels Group

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InterContinental Hotels Group PLC
Type Public Limited Company
Traded as LSEIHG
NYSEIHG
Industry Hotels
Founded 15 April 2003 (origins trace back to 1777)
Headquarters Denham, Buckinghamshire, United Kingdom
Key people Patrick Cescau (Chairman)
Richard Solomons (CEO)
Services Hospitality
Revenue $1,903 million (2013)[1]
Operating income $668 million (2013)[1]
Net income $374 million (2013)[1]
Employees 120,000 (2012)[2]
Divisions Candlewood Suites
Crowne Plaza
Even Hotels
Holiday Inn
Holiday Inn Express
Hotel Indigo
InterContinental
Staybridge Suites
Website www.ihgplc.com

InterContinental Hotels Group PLC informally InterContinental Hotels or IHG is a British multinational hotels company headquartered in Denham, UK. It is the largest hotel company in the world measured by rooms (with 687,000 as of February 2014), and has over 4,600 hotels across over 100 countries.[3] Its brands include Candlewood Suites, Crowne Plaza, Even, Holiday Inn, Holiday Inn Express, Hotel Indigo, Hualuxe, InterContinental and Staybridge Suites. Of the 4,602 hotels, 3,934 operate under franchise agreements, 658 are managed by the company but separately owned, and 10 are directly owned.[4]

History[edit]

Bass Hotels[edit]

The origins of InterContinental Hotels Group can be traced back to 1777, when William Bass established the Bass Brewery in Burton-upon-Trent. In 1876, its red triangle trademark was the first registered in the United Kingdom.[5]

In 1989, the British Government limited the number of pubs which brewers could directly own, resulting in Bass investing in the expansion of its small line of hotels. In 1990, it purchased Holiday Inn International from Kemmons Wilson and expanded into North America.[5]

InterContinental[edit]

Pan American Airways founder Juan Trippe established the InterContinental brand as a division of PanAm and opened the first hotel in Belém, Brazil in 1946. In 1981, holding company InterContinental Hotels Corporation (IHC) was sold to UK-based company Grand Metropolitan. As GrandMet focused its core business and expanded into fast food through the purchase of Burger King, it sold IHC to Japanese based Saison Group in 1988.[5]

In March 1998, Saison Group sold IHC to British brewery Bass, which traces its roots back to 1777, when William Bass established the Bass Brewery in Burton-upon-Trent. In 1988, in reaction to the British government limiting the number of pubs which brewers could directly own, Bass invested in the expansion of its small line of hotels. In 2000, Bass sold its brewing assets (and the rights to the Bass name) to the major Belgian brewer Interbrew for £2.3 billion and changed its name to Six Continents.[5]

In 2003, the independent corporation InterContinental Hotels Group (IHG) was created after Six Continents split into two companies: Mitchells & Butlers took control of the restaurant assets[6] and IHG focusing on hotels and soft drinks.[5] IHG retained Britvic, the soft drinks division, until December 2005 when it sold its interest in the company by an initial public offering.[7]

Operations[edit]

A 4* upmarket Holiday Inn in Belfast City Centre
An Uptown Houston Hotel Indigo
InterContinental Boston

IHG is primarily engaged in managing hotels owned by other parties and in franchising its hotel brands. That is, it sells its expertise in hotel management, systems, and marketing, while leaving investment in real property, which is far more capital intensive, requires different skills, and has a different risk profile, primarily to its partners. This is not an unusual arrangement in the hotel industry. The 10 company-owned hotels include many key properties of company's flagship InterContinental brand.

IHG currently operates and/or franchises hotels in the following countries:

An IHG hotel in Hanoi, Vietnam

Brands[edit]

In February 2012, IHG announced plans for a new wellbeing based concept called Even Hotels[12] and in March 2012, a new luxury concept called "Hualuxe" to be rolled out initially in China.[13]

IHG Rewards Club[edit]

IHG Rewards Club is IHG's worldwide loyalty program, which replaced Priority Club Rewards in July 2013. The loyalty scheme was first introduced in 1983, and now has 74 million members around the world.[14]

IHG Business Advantage[edit]

Business Advantage is IHG's corporate programme designed for small and medium size businesses. As well as providing an easier way to organise, book and pay for hotel accommodation, Business Advantage also entitles their account holders to preferential rates at all IHG’s hotels across the UK and Northern Ireland.[15]

Notable properties[edit]

The Crowne Plaza Liverpool John Lennon Airport is the former terminal building of Liverpool Speke Airport, constructed in the 1930s and used until 1986. Its notable art deco features led to its listing as a heritage building, and subsequent adaption as a hotel.[16]

References[edit]

  1. ^ a b c "Preliminary Results for the year to 31 December 2013" (PDF). InterContinental Hotels Group PLC. Retrieved 10 March 2014. 
  2. ^ "Annual Report 2012". Retrieved 10 March 2014. 
  3. ^ "IHG overview". InterContinental Hotels Group. Retrieved 10 March 2014. 
  4. ^ "Annual Report 2012". IHG Report. Retrieved 28 July 2013. 
  5. ^ a b c d e "Intercontinental Hotels History". Ihgplc.com. 1 March 2011. Retrieved 18 April 2011. 
  6. ^ "Our History". Mitchells & Butlers. Retrieved 2011-08-26. 
  7. ^ Nick Golding (12 January 2005). "Britvic IPO sees staff get £750 shares each". Employee Benefits Group. Retrieved 2011-08-26. 
  8. ^ "InterContinental Hotels Group PLC : Our brands – Holiday Inn Hotels & Resorts". Ihgplc.com. 4 April 2011. Retrieved 18 April 2011. 
  9. ^ "The Top 43 Hotel Brands Ranked by Number of Rooms". Hotel-Online. 3 September 2010. Retrieved 2011-08-26. 
  10. ^ "IHG PLC – Holiday Inn Club Vacations fact sheet" (PDF). Retrieved 18 April 2011. 
  11. ^ "InterContinental Hotels Group PLC : Our brands – Holiday Inn Express". Ihgplc.com. 4 April 2011. Retrieved 18 April 2011. 
  12. ^ "IHG launches health and fitness-oriented hotel brand". USA Today. Retrieved 12 April 2012. 
  13. ^ "IHG targets Chinese consumer base with Hualuxe". Hotel News Now. Retrieved 12 April 2012. 
  14. ^ "IHG® Rewards Club". InterContinental Hotels Group. Retrieved 7 August 2013. 
  15. ^ "IHG Business Advantage". 
  16. ^ "Recent History and Current Developments". Friends of Liverpool Airport. Retrieved 2008-09-09. 

External links[edit]