About the hotel industry
The prospects for the hotel industry look healthy. Demand for hotels rises when more people travel and travel more frequently. Currently, we have powerful “tailwinds” driving travel generally across the globe and these are expected to remain favourable for years to come. These include:
- Access to the internet is opening up the vista of travel to a far wider cross section of people.
- Emergence of low-cost airlines now helps make long-distance travel something that everyone can enjoy.
- Gradual removal of travel restrictions to and from some of the world’s largest countries, such as China.
- People are increasingly defining themselves by the brands they use, and hotels are no different. Brands represent known quantities and offer predictable returns and, as ownership of hotels consolidates, we can expect to see demand for brands rising in parallel.
With a positive industry outlook, the prospects for IHG look particularly good. Branded hotels are becoming more popular as customers seek out consistent experiences, while investors appreciate the reliable returns that brands can generate.
Our business has been through a lot of change over the last few years. IHG is in good shape and is ready to build on its position as the leading hotel company in the world.
Andrew Cosslett
CEO – InterContinental Hotels Group
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Last updated 12 August 2008
