InterContinental Business Still Improves Despite the World Recession
The Chief Executive Officer said between August and September, the business of InterContinental group was still great.
Business industry in the world is facing global recession right now but Richard Solomons of InterContinental Hotels Group stated that his business is not largely affected by the recession. The Chief Executive Officer said between August and September, the business of InterContinental group was still great. There was no serious damage as the impact of the world recession and elevating debt in the United States and Europe.
The group, that becomes the mother of Holiday Inn, Crowne Plaza and InterContinental hotel, does not see any real impact from the economic activity happens outside.
Interviewed by Reuters recently, Solomons said that the group understands that the impact may exist in the immediate future but they do not see anything dangerous to their business as a result of the global recession today.
Solomons also said that among a number of chain hotels in the world that survived the impact of Lehman Brothers collapse in 2008, the InterContinental came up as the best hotel to escape the bankruptcy. They have the confidence as the debt is low and they also own an investment grade rating. Work is in progress to make the hotel stay on the top position of the competition.
He said, “We don’t see anything in our numbers today that tells me that there is any difference in our momentum going forward.”
Solomons stated that the U.S. hotels industry had a record in August when it comes to the number of the rooms booked. He added that his company always managed to beat the industry. However, the recent situation of the world also gave impact to the profit of the hotel group.
“Unrest and earthquake in 2011 will affect this year’s profit,” he said. Previous forecast range of the profit was $15-20 million and since there was a devastating earthquake in Japan and several unrests in Africa, it is likely that the profits will be towards the bottom of the forecast.
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