Intercontinental Hotel Group Finally Admitting The Obvious
It's only taken like five months, but hotel firms are starting to admit what everyone has assumed for so long. Hotel development will slow down due to the economy.
The Financial Times has some insight into this turn of events:
IHG has 1,788 new openings in the pipeline and Mr Cosslett admitted for the first time that some of its openings could be delayed by "up to a few months."
These latest words of wisdom come from Andrew Cosslett (right) who is the CEO of InterContinental Hotel Group which owns Holiday Inn, Staybridge Suites, Hotel Indigo, and other hotel brands, IHG is also the largest hotel operator in the world with over 4,000 hotels.
What blows us away is the fact that they have almost 1,800 hotels in the pipeline. That's like, double the amount of hotels that Starwood currently has, 2/3rds the number of hotels that Marriott & Hilton has and...Wow. That's just a lot of hotels.
But IHG and its CEO don't seem to be all that worried about the downturn:
..But we are opening one hotel a day and signing up another two [a day] so we expect to deliver revenue improvement even in the event of a slowdown.
Plus, IHG still believes there is plenty of room to grow in China, so maybe, just maybe, Starwood's aim for China domination will happen after all.
[Photo: CNN.com]
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