25th Feb 2014 12:04
LONDON (Alliance News) - InterContinental Hotels Group PLC said Tuesday it is making its return to the Rio de Janeiro market and is expanding its Holiday Inn brand, by signing two new hotels in Brazil.
The hotel giant is the world's largest hotel company by the number of rooms, and owns luxury brands such as Intercontinental Hotels and the Crowne Plaza chain, and lower-priced hotel brands like the Holiday Inn family. Its portfolio includes over 4,700 hotels and 687,000 guest rooms in nearly 100 countries and territories.
IHG said the two new 32-storey hotels - one of which will be a Holiday Inn hotel and the other a Hotel Inn Express hotel - will be located in Rio de Janeiro's downtown area of Porto Maravilha.
It said the hotels, owned by Odebrecht Realizaçöes Imobiliárias and FII PM Caixa Fundo de Investimento Imobiliário Porto Maravilha, will be managed by IHG.
IHG said the new hotels will be designed in line with the Holiday Inn family brand's USD1 billion global brand relaunch. It said both hotels will share the same tower and operational area, "allowing operational synergies and economies of scale to manage these properties."
IHG said it sees great potential for its brands in Brazil.
"We have a long and successful history in Brazil, and the addition of Holiday Inn and Holiday Inn Express hotels in Rio de Janeiro is in line with IHG?s strategy to expand our portfolio in all key markets across the region, specifically in Brazil," said Alvaro Diago, Chief Operating Officer of Latin America and the Caribbean, adding "Porto Maravilha is a key strategic city that will continue to grow in importance for both business and leisure travelers."
IHG's shares dropped last week after the hotel group released its full-year results. Despite the group reporting higher 2013 pretax profit and revenues, driven by new hotel openings and occupancy and room rates rising at its existing hotels, as investors worried about the company's extensive capital spending plans.
IHG said in its full-year results on February 18 that it is planning to spend towards the top end of its previous guidance on increased investments in its hotels and its technology platforms, it will also spend about USD175 million for refurbishing and extending the InterContinental New York Barclay hotel, part of the deal under which it sold the hotel.
Shares in IHG have since recovered, trading 0.3% higher Tuesday morning at 1,930.00 pence per share, making it one of the biggest gainers on the FTSE 100.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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