IHG Hotels & Resorts

From Wikipedia, the free encyclopedia

InterContinental Hotels Group plc
IHG Hotels & Resorts
Company typePublic
ISINGB00BHJYC057 Edit this on Wikidata
IndustryHospitality
Founded15 April 2003; 20 years ago (15 April 2003)
HeadquartersWindsor, England, UK
Number of locations
6,028 hotels
884,820 rooms[1] (2022)
Area served
Global
Key people
Deanna Oppenheimer (Chair)
Elie Maalouf (CEO)
ProductsHotels and resorts
Brandssee Brands
RevenueIncrease US$4,624 billion (2023)[2]
Increase US$1,066 million (2023)[2]
Increase US$750 million (2023)[2]
Number of employees
345,000 (2024)[3]
Websitewww.ihgplc.com

InterContinental Hotels Group (IHG), marketed as IHG Hotels & Resorts, is a British multinational hospitality company headquartered in Windsor, Berkshire, England.[4] It is listed on the London Stock Exchange and the New York Stock Exchange.[5] It is also a constituent of the FTSE 100 Index.

History[edit]

Bass Hotels[edit]

The origins of the business may be traced to 1777 when William Bass established the Bass Brewery in Burton-upon-Trent.[6]

The company later changed its name to Bass Charrington. Its first entry into the lodging sector came with acquisition of tied public houses. In 1969, it launched the Crest Hotels chain.[7]

In 1988, after the British government limited the number of pubs that brewers could directly own, Bass further invested in the expansion of its hotel business with the purchase of Holiday Inn International from shareholders.[6] Bass sold off the bulk of Crest Hotels in 1990, and the few remaining properties were absorbed into the Holiday Inn chain.[8][9] Bass expanded its hotel business again in 1998, acquiring the luxury Inter-Continental hotel chain, which had been founded by Juan Trippe, from the Saison Group.[10] The hotel division was then renamed from Holiday Hospitality to Bass Hotels & Resorts, to reflect its expansion beyond the Holiday Inn brand.[11]

Bass changed its name to Six Continents in 2001, after having sold its brewing assets and the Bass name, and Bass Hotels & Resorts became Six Continents Hotels.[12]

InterContinental Hotels Group[edit]

IHG logo from 2017 to 2021

Six Continents announced in October 2002 that it would split itself in two, with one company holding its pubs and restaurants, and the other holding its hotel and soft drink businesses.[13] The split was completed on 15 April 2003, establishing InterContinental Hotels Group as an independent company, alongside the pub company, Mitchells & Butlers.[14] IHG's hotel portfolio at the time comprised 3,325 properties, primarily under the Holiday Inn, Crowne Plaza, and InterContinental brands.[15] Of those, 190 were owned or leased by the company, with the remainder under management or franchise agreements.[16]

After the separation from Six Continents, IHG began an asset disposal program, selling off hotels to move towards an "asset-light" model focused on franchising and management.[17] From 2003 to 2015, the company sold around 200 hotels for a total of almost $8 billion,[18][19] leaving only 7 owned or leased properties in the portfolio.[20]

In 2004, IHG acquired the Candlewood Suites brand, a midscale extended stay hotel brand with 108 franchised properties in the United States, for $15 million.[21][22]

IHG divested its soft drink holdings in 2005, selling its 48 percent stake in Britvic for £371 million through an initial public offering.[23][24]

In 2015, IHG acquired Kimpton Hotels, a boutique hotel brand with 62 managed properties, for $430 million.[25][26]

In February 2021, IHG announced an annual loss of $153 million caused by restrictions related to the COVID-19 pandemic. However, the company expected that the Holiday Inn Express brand would help in the recovery process.[27]

Operations[edit]

A typical Holiday Inn & Suites in Davenport, Iowa
An Uptown Houston Hotel Indigo
InterContinental Kyiv, Ukraine
InterContinental Mark Hopkins San Francisco
Lounge InterContinental Singapore

The company's worldwide headquarters and European offices are located in Windsor, Berkshire, England.[28][29] IHG maintains regional offices in Atlanta, Singapore and Shanghai.[28]

In 2012, IHG claimed more than 5,400 hotels, with 4,433 operated under franchise agreements, 907 managed by the company but separately owned and eight directly owned.[30] As of 31 March 2019, IHG has 842,759 guest rooms and 5,656 hotels across nearly 100 countries.[31]

Leadership[edit]

List of CEOs[edit]

  1. Richard North (2003–2005)[32]
  2. Andy Cosslett (2005–2011)[33]
  3. Richard Solomons (2011–2017)[33]
  4. Keith Barr (2017–2023)[34]
  5. Elie W. Maalouf (since July 2023)[34]

Brands[edit]

IHG has 18 brands marketed under five segments:[35][36]

Brand # properties
(as of 2022)
Luxury & Lifestyle
Hotel Indigo 135
InterContinental Hotels & Resorts 208
Kimpton Hotels & Restaurants 76
Regent Hotels & Resorts 8
Six Senses 20
Vignette Collection 3
Premium
Crowne Plaza Hotels & Resorts 401
Even Hotels 22
Hualuxe Hotels & Resorts 19
Voco 41
Essentials
Avid Hotels 55
Holiday Inn 1,182
Holiday Inn Express 3,059
Suites
Atwell Suites 2
Candlewood Suites 367
Holiday Inn Club Vacations 28
Staybridge Suites 315
Exclusive Partners
Iberostar Beachfront Resorts[37] 70

Criticism[edit]

Price fixing[edit]

In July 2012, the Office of Fair Trading alleged that IHG had broken competition law by preventing online travel agents from discounting the price of room-only hotel accommodations. In February 2014, IHG agreed to end the practice of price fixing.[38]

VAT rules[edit]

In May 2012, the UK Advertising Standards Authority (ASA) warned IHG that it must include VAT in its advertised prices. In August 2012, a report by Which? magazine showed that IHG was continuing to violate VAT rules.[39]

Living wage[edit]

In November 2017, London mayor Sadiq Khan accused IHG of failing to fulfil a commitment to pay a living wage.[40]

References[edit]

  1. ^ "IHG global presence". InterContinental Hotels Group PLC. Retrieved 24 May 2022.
  2. ^ a b c "Annual Results 2023" (PDF). InterContinental Hotels Group PLC. Retrieved 20 February 2024.
  3. ^ "About us". IHG Hotels & Resorts. Retrieved 11 February 2024.
  4. ^ "InterContinental Hotels Group PLC ADS". The Wall Street Journal. Retrieved 1 September 2014.
  5. ^ "InterContinental Hotels Group PLC (IHG) Stock Price, News, Quote & History - Yahoo Finance". finance.yahoo.com. Retrieved 9 February 2023.
  6. ^ a b "Our History". Intercontinental Hotels Group. ihgplc.com. Retrieved 27 January 2018.
  7. ^ "Bass / Six Continents". Ad Brands. Retrieved 5 August 2018.
  8. ^ "Bass hotels sold to Forte group". Burton Mail. 16 May 1990 – via Newspapers.com.
  9. ^ "Forte beds Crest". Derby Evening Telegraph. 16 May 1990 – via Newspapers.com.
  10. ^ "Bass Acquires Inter-Continental Hotels / Feb 1998". www.hotel-online.com. Retrieved 27 January 2023.
  11. ^ Matt Kempner (5 May 1998). "A new name for Holiday Hospitality". The Atlanta Constitution – via Newspapers.com.
  12. ^ "Bass Hotels & Resorts becomes Six Continents Hotels". HNR Hotel News. 30 July 2001. Retrieved 19 February 2023.
  13. ^ Julia Finch (1 October 2002). "Six Continents to split into two". The Guardian. London. Retrieved 18 February 2023.
  14. ^ Richard Wray (15 April 2003). "Six Continents split loses glitz". The Guardian. London. Retrieved 18 February 2023.
  15. ^ Form 20-F: Annual Report (Report). InterContinental Hotels Group. 18 February 2003. p. 30 – via EDGAR.
  16. ^ Form 20-F: Annual Report (Report). InterContinental Hotels Group. 18 February 2003. p. 29 – via EDGAR.
  17. ^ Annual Report and Financial Statements 2003 (Report). InterContinental Hotels Group. p. 4. Retrieved 18 February 2023 – via Companies House.
  18. ^ "The hotel asset light model". Edison Group. 30 May 2019. Retrieved 18 February 2023.
  19. ^ "InterContinental Hotels Group - $1.5bn special dividend". Hargreaves Lansdown. 23 February 2016. Retrieved 18 February 2023.
  20. ^ Form 20-F: Annual Report (Report). InterContinental Hotels Group. 3 March 2016. p. 34 – via EDGAR.
  21. ^ Dan Voorhis (29 October 2003). "Candlewood Hotel Co. sold". The Wichita Eagle – via Newspapers.com. (Part 2 of article)
  22. ^ Annual Report (Report). InterContinental Hotels Group. 4 June 2004. p. 4 – via Companies House.
  23. ^ "Corbett joins Britvic for £800m flotation". The Independent. London. 14 November 2005 – via Newspapers.com.
  24. ^ Form 6-K: Report of Foreign Private Issuer (Report). InterContinental Hotels Group. 23 December 2005 – via EDGAR.
  25. ^ "IHG agrees $430 million acquisition of boutique Kimpton Hotels". Reuters. 16 December 2014. Retrieved 19 February 2023.
  26. ^ "Completion of Acquisition" (Press release). InterContinental Hotels Group. 16 January 2015. Retrieved 19 February 2023.
  27. ^ "Holiday-Inn owner IHG posts annual loss on COVID-19 slowdown". Arab News. 23 February 2021. Retrieved 23 February 2021.
  28. ^ a b "Regional headquarters". InterContinental Hotels Group PLC.
  29. ^ "Denham Location Map" (PDF). InterContinental Hotels Group. Archived from the original (PDF) on 9 August 2014. Retrieved 15 December 2014. IHG, Broadwater Park North Orbital Road, Denham, Buckinghamshire UB9 5HR
  30. ^ "Annual Report 2012" (PDF). IHG. Retrieved 28 July 2013.
  31. ^ "IHG overview". InterContinental Hotels Group. Retrieved 11 September 2018.
  32. ^ "InterContinental Hotels Group PLC announces that Richard North will be stepping down as Chief Executive".
  33. ^ a b "Andrew Cosslett to step down as Chief Executive; to be succeeded by Richard Solomons, Chief Financial Officer and Head of Commercial Development". IHG Press Release.
  34. ^ a b "IHG hotels boss who criticised London's declining listing appeal set to check out and return to US". Evening Standard. 5 May 2023. Retrieved 2 November 2023.
  35. ^ "IHG: Our Brands Homepage". InterContinental Hotels Group. Retrieved 20 February 2023.
  36. ^ "Our Brands". InterContinental Hotels Group. Retrieved 20 February 2023.
  37. ^ "IHG and Iberostar sign a strategic alliance for resort and all-inclusive hotels in the Caribbean, Americas, Southern Europe and North Africa". IHG Hotels & Resorts. Retrieved 21 November 2022.
  38. ^ George, Sara (31 January 2014). "Investigation into the hotel online booking sector". webarchive.NationalArchives.gov.uk. Archived from the original on 2 April 2014. Retrieved 18 November 2017.
  39. ^ "Hotels chains 'breaching VAT rules'". The Telegraph. 5 February 2016. Archived from the original on 12 January 2022. Retrieved 18 November 2017.
  40. ^ Inman, Phillip (10 November 2017). "Sadi​ Khan: Holiday Inn owner has broken vow to pay living wage". The Guardian. Retrieved 18 November 2017.

External links[edit]