InterContinental Hotels Portfolio Now Has
|ATLANTA, Jan. 5, 2004 - InterContinental Hotels Group (IHG) announces
that as of December 31, 2003, it has acquired the Candlewood Suites brand,
through its affiliate Six Continents Hotels, Inc., and increased its management
portfolio by more than 40% in the Americas. This addition brings the total
number of IHG brands to six, and the number of owned, managed, leased and
franchised properties (through various affiliates) to more than 3,400 hotels
and 527,500 guest rooms in nearly 100 countries and territories around
"We are very pleased with this acquisition because it is consistent with our long-term strategy to prove and deliver winning brand concepts, while reducing our capital exposure in real estate assets and growing our revenue stream from management and franchise fees," says Steve Porter, president for the Americas, InterContinental Hotels Group. "And, it allows us to expand our industry supply share in a segment where we have experience and dominance -- the mid-price market -- with good quality assets, that significantly grow our room and hotel supply share virtually overnight."
All Candlewood Suites properties are purpose-built, and are on average less than five years old. The addition of this new brand to the IHG portfolio also means the group now has representation in both the midscale extended stay segment, as well as the upscale extended stay segment with their Staybridge Suites offering.
This two-part transaction involved three parties: IHG, Candlewood Hotel Corp. (CNDL) and Hospitality Properties Trust (HPT). IHG, through its affiliate Six Continents Inc., acquired the Candlewood Suites brand for $15.3 million in cash and its affiliate Holiday Hospitality Franchising, Inc. will be the licensor on all current and future franchise agreements. InterContinental Hotels Group Resources, Inc. entered into an agreement with HPT, which owns 64 Candlewood Suites hotels and will purchase an additional 12, to manage these 76 properties. The management agreement has as initial term of 25 years with an option to extend. This addition is expected to be earnings enhancing within the first year.
The success of IHG, provides a solid foundation to drive brand value -- with some of the strongest, most recognized brands in the industry: InterContinental® Hotels and Resorts, Crowne Plaza® Hotels & Resorts, Holiday Inn® Hotels and Resorts, Holiday Inn Express®, Staybridge Suites®, and now Candlewood Suites®.
IHG's integrated marketing initiatives help unify all six brands so they benefit and learn from each other's efforts -- while keeping the brands distinct and differentiated to their customer segments. IHG does this by offering current and prospective franchisees access to a multi-brand marketing platform comprised of its Enterprise Values -- technology, global reservations centers, global sales, performance support, and Priority Club® Rewards.
InterContinental Hotels Group PLC of the United Kingdom owns, manages, leases or franchises, through various subsidiaries, more than 3,400 hotels and 527,500 guest rooms in nearly 100 countries and territories around the world. The Group owns a portfolio of well recognised and respected hotel brands including InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Holiday Inn, Express by Holiday Inn, Staybridge Suites, and Candlewood Suites.
InterContinental Hotels Group
|Also See:||InterContinental Hotels Group to Acquire the Candlewood Suites Brand for $15 million in Cash / October 2003|
|Headed by Richard Hartman, InterContinental Hotels Puts New Focus on The Europe, Middle East and Africa Regions / June 2003|