11th Oct 2005 14:36
InterContinental Hotels Group PLC11 October 2005 11 October 2005 IHG ORGANISATIONAL CHANGES TO FOCUS ON GROWTH In its half year results announcement on 8th September 2005, InterContinentalHotels Group ("IHG") set out a new strategy to drive growth, and a new roomsgrowth target of 50,000 - 60,000 net new rooms by the end of 2008. IHG announcestoday organisational changes to enhance IHG's operational effectiveness, andbest position it to achieve its growth ambitions in its managed and franchisedoperations from its focus on owners and guests. IHG will maintain its current regional organisational structure. Its threeregions of the Americas, EMEA and Asia Pacific will continue to operate underthe control of Stevan Porter, Richard Hartman and Patrick Imbardellirespectively. Going forward, there will be more consistent processes andstandards across the three regions, to reflect the growing globalisation ofIHG's owners and guests, and an increased level of support from centralfunctions. Andrew Cosslett, Chief Executive, InterContinental Hotels Group, said: "These changes to the organisation follow on from our stated strategy to becomethe number one choice for hotel owners and guests worldwide. As our businessmodel becomes more aligned globally on managing and franchising we will beworking more closely together to accelerate growth. I am confident that thesechanges will support our strategy effectively and deliver results." Details of organisational changes Franchise strategy Hotel franchising, IHG's core business model, is well developed in the US marketbut less developed in other areas of the world. To aid the faster globaldevelopment of this business model, IHG has created the new role of GlobalLeader Franchise Strategy, with responsibility for the development anddeployment of best practice in franchising globally. Stevan Porter, President, the Americas will take on this newly created role, inaddition to his existing responsibilities. The considerable expertise Steve hasgained in developing and running a franchise network in the Americas region willhelp IHG as it further develops this core business model across each of itsregions. Owner relationships and finance IHG continues to focus on further developing its relationships with owners. Toassist in this initiative, Richard Solomons, in addition to retaining hisexisting responsibilities as Group Finance Director, will work to develop IHG'srelationship management programme with major global hotel investors,particularly in the upscale arena. Richard will also assume direct responsibility for strategy, asset management,and will continue his role as Chairman of Britvic. IT Class leading management and revenue systems are an essential part of thestrength of IHG's operational system, which makes IHG an attractive choice forhotel owners. Maintaining the strength of these systems is a key priority, as isgaining a greater ability to interrogate and use customer data currentlyembedded in IHG's hotel reservation systems and Priority Club Rewards loyaltyprogramme. To reflect the importance placed on this function, a new position on theExecutive Committee has been created, of Chief Information Officer ("CIO"). TheCIO will report directly to the CEO. A search for candidates is underway. Brands and Marketing As IHG continues to focus on its managed and franchised business models, thestrength of its brands remains a key area of focus. A new role of ChiefMarketing Officer has been created to lead the development of IHG's worldwidebrand priorities, create a consistent brand management process and build newmechanisms to link IHG's marketing teams around the world. Peter Gowers will take up this new role, in addition to his existingresponsibilities as Executive Vice President, Global Brand Services. Human Resources IHG continues to focus on developing and retaining its people. To bring greaterconsistency to this, regional HR teams are to be aligned globally under theGlobal Head of Human Resources. IHG's current Head of Human Resources, Jim Larson, has resigned with effect fromthe end of this year, to pursue other professional interests in his home countryof the US. It is with regret therefore that a search has been put underway forJim's successor. Corporate Social Responsibility IHG maintains a strong focus on Corporate Social Responsibility. Richard Winter, Executive Vice President Corporate Services, General Counsel andCompany Secretary, will continue the development of IHG's Corporate SocialResponsibility agenda. For further information, please contact: Investor Relations (Paul Edgecliffe-Johnson) +44 (0) 1753 410 176 Media Enquiries (Leslie McGibbon) +44 (0) 1753 410 425; +44 (0) 7808 094 471 Note to Editors: InterContinental Hotels Group PLC of the United Kingdom (LON:IHG, NYSE:IHG(ADRs)) is the world's largest hotel group by number of rooms. InterContinentalHotels Group owns, manages, leases or franchises, through various subsidiaries,more than 3,500 hotels and over 537,000 guest rooms in nearly 100 countries andterritories around the world. The Group owns a portfolio of well recognised andrespected hotel brands including InterContinental(R) Hotels & Resorts, CrownePlaza(R) Hotels & Resorts, Holiday Inn(R) Hotels and Resorts, Holiday InnExpress(R), Staybridge Suites(R), Candlewood Suites(R) and Hotel IndigoTM, andalso manages the world's largest hotel loyalty programme, Priority Club(R)Rewards, with over 26 million members worldwide. In addition to this,InterContinental Hotels Group has a 47.5% interest in Britvic, one of the twoleading manufacturers of soft drinks, by value and volume, in Great Britain. InterContinental Hotels Group offers information and online reservations for allits hotel brands at www.ichotelsgroup.com and information for the Priority ClubRewards programme at www.priorityclub.com. For the latest news from InterContinental Hotels Group, visit our online PressOffice at www.ihgplc.com/media. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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