IHG Buys Ruby, UK Green Fuel Dilemma and AmexGBT-CWT Merger

Skift Daily Briefing Podcast

Listen to the day’s top travel stories in under four minutes every weekday.

Good morning from Skift. It’s Wednesday, February 19, and here’s what you need to know about the business of travel today.

InterContinental Hotels Group announced on Monday it’s buying Ruby Hotels in a deal worth a little more than $300 million, reports Senior Hospitality Editor Sean O’Neill.  

Ruby becomes IHG’s twentieth brand, and O’Neill notes IHG’s latest acquisition is part of its strategy to expand in Europe. Ruby currently operates 20 hotels with more than 3,000 rooms across the continent. However, IHG CEO Elie Maloof said the company is looking to do more than just grow in Europe, adding that IHG plans to launch Ruby in the U.S. by the end of the year. 

Listen to This Podcast

🎧 Subscribe

Apple Podcasts | Spotify | Youtube | RSS

Next, airlines in the United Kingdom have turned to cooking oil imported from China to help produce sustainable aviation fuel. But they may not be able to rely on that supply of Chinese cooking oil for much longer, writes Climate Reporter Darin Graham. 

A new law in the UK requires British airlines to use at least 2% SAF in their fuel mix, a figure that will increase as part of the country’s plan to reach net zero emissions from aviation by 2050. But as China is introducing its own SAF mandate later this year, Graham notes Chinese efforts to keep more of its biofuel at home could make it difficult for UK airlines to source enough SAF. 

The UK currently doesn’t have any dedicated SAF production plants, with one aviation analyst stating it’s a certainty that used cooking oil imports from China will be reduced. 

Finally, the UK’s competition regulator has given its provisional approval to American Express Global Business Travel’s pending $570 million acquisition of rival CWT, writes Executive Editor Dennis Schaal.

The Competition and Markets Authority’s ruling is a reversal from last year, when it said in a preliminary finding that Amex GBT acquiring CWT would likely stifle competition in corporate travel. Schaal notes the CMA’s recent decision came after it had received additional information about CWT’s financial struggles.

However, the new finding does not mark the end of the merger review process in the UK, as the CMA is expected to issue its final decision by March 9.