You are here

InterContinental Hotels said to explore deal after interest

[LONDON] Holiday Inn owner InterContinental Hotels Group Plc is exploring strategic options including a potential sale or merger after attracting interest amid a boom in lodging deals, according to people with knowledge of the matter.

The world's largest provider of hotel accommodation, which has a market value of about 6.4 billion pounds (S$13.7 billion), is discussing with financial advisers whether to sell itself or combine with a competitor as the sector consolidates, the people said, asking not to be named because the talks are private. No final decision has been made and the company may choose to stay independent and could focus on making acquisitions of its own, the people said.

Global lodging transactions have increased 13 per cent to more than US$28 billion in 2015, according to data compiled by Bloomberg. Starwood Hotels & Resorts Worldwide Inc, the parent of the Westin and St. Regis brands, hired an adviser earlier this year to help explore strategic options and is currently the subject of a bidding war.

HNA Group Co, hotelier Jin Jiang International (Holdings) Co and sovereign wealth fund China Investment Corp are vying to acquire Stamford, Connecticut-based Starwood, a person with knowledge of the matter said last month. CNBC reported last week that Hyatt Hotels Corp is in advanced talks to buy the chain. Another major competitor in lodging is Wyndham Worldwide Corp, which owns the Ramada chain.

InterContinental, owner of the Crowne Plaza and Indigo chains, has been the subject of speculation that it could combine with another player. The company in July said it isn't in merger talks with Starwood after the Financial Times reported that negotiations had taken place. InterContinental is also in talks to buy Fairmont Hotels & Resorts, owner of Singapore's Raffles hotels, according to two people familiar with the matter.

Your feedback is important to us

Tell us what you think. Email us at

Shares of InterContinental are almost unchanged this year, compared with a 16 per cent decline in the benchmark Bloomberg World Lodging Index.

The Denham, England-based company last month reported that third-quarter room revenue rose 4.8 per cent from a year earlier, thanks to increases in all regions except Greater China.


BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to