Posted by: ardhasugarda | January 1, 2009

InterContinental Hotel Group

Strategy Analysis Assignment

Just wanna share what I have made during my master degree program back in 2008, as it’s one of the reason why I am running a Bed and Breakfast after my graduation because the hospitality industry still have a lot of potential for many years to come.

History of InterContinental Hotel Group

InterContinental Hotels Group

InterContinental is the world’s largest hotel operator by bedroom numbers and it operates in the upscale, mid-market, budget and extended stay sectors. The group owns leases, manages or franchises around 3,600 hotels with 537,500 bedrooms in nearly 100 countries.


1946  InterContinental Hotels Corporation founded by PanAmerican World Airlines

1947  The first property, the Hotel Grande in Belem, Brazil, is inaugurated

1981  InterContinental Hotels Corporation is sold to UK-based company Grand Metropolitan

1988  Grand Metropolitan sells InterContinental Hotels Corporation to Japanese based Siason Group

1998  Bass PLC (UK’s Brewers Company which have Holliday Inn and Staybridge Suites in their portfolio) acquires InterContinental Hotels Corporation

2000  The group sells Bass Brewers to a major Belgian brewer for £2.3 billion. It also Involves the sale of the Bass name and a change or name to Six Continents PLC

2003  Six Continents PLC separated the business between group’s hotels and soft drinks businesses (to be called InterContinental Hotels Group PLC / IHG) from the retail business (to be called Mitchells & Butlers plc). InterContinental Hotel Group PLC is now a distinct, discrete company, listed in the UK and the US stock markets. In December, IGH adds the brand Candlewood Suites to its portfolio

2004  IHG announces the introduction of a new brand, Hotel Indigo

2005  IHG announces the disposal of 100% of its holding in Britvic plc and became a company with a pure hotels focus

2006  IHG signs an operating joint venture with All Nippon Airways (ANA) – IHG ANA Hotels Group Japan

Since its demerger from Six Continents (formerly Bass Plc) in 2003, IHG has been busy transforming itself from a hotel owner into a hotel management and franchise company. The group 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. This transformation make a significant impact on the growth of the company after IHG decided to focus on the Hotel business on 2003 and since then try to focus more on the branding, management and franchising and sells assets to the investors/franchisees.

To see my complete review, please click on this link : Hotel_InterContinental Hotel Group_Sugarda


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