Credit crunch delays new InterContinental hotels
InterContinental Hotels Group (IHG) has admitted that its pipeline of new developments will be affected by the global economic downturn.
IHG, which has more than 4,000 hotels and 600,000 rooms in 100 countries, was aiming to open a further 1,788 high-end hotels in the medium term but its chief executive Andy Cosslett has admitted that some of its openings could now be delayed by "up to a few months".
He added: "We could slow down in some projects while others might disappear. But we are opening one hotel a day and signing up another two so we expect to deliver revenue improvement even in the event of a slowdown", according to the Financial Times.
Cosslett insisted that IHG, whose brands include InterContinental, Crowne Plaza and Holiday Inn, is better positioned than its rivals because three-quarters of the group's pipeline is in the mid-market sector, a segment where developments are largely being financed by regional banks.
The IHG boss said this was an advantage as up-market hotel developments were more reliant on funding from the big Wall Street banks in the US, which are currently suffering due to the credit crunch.
Earlier this month, US giant Marriott announced a 28% fall in third-quarter profit and the likelihood of a slowing development pipeline.
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Marriott admits credit crunch may affect new openings plan >>
By Gemma Sharkey
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