IHG Expects to Prosper Even If the Global Economy Tanks
Skift Take
A slowdown is coming — we don't know when and it probably won't be at the same scale as 2008 — but it will happen. A bullish IHG claims its business and its model makes it well-placed to ride out the storm.
The prospect of some form of global slowdown over the next year or so looks increasingly likely, especially with countries squabbling over trade, but InterContinental Hotels Group believes it's in a position to be able to weather any storm that might blow its way.
Revenue per available room — a key metric in the hotel industry — dropped 0.8 percent across the group in the third quarter, indicating a weaker environment.
Some of IHG's issues are market-specific. Protests in Hong Kong have had a detrimental impact on tourism, and IHG expects to take a $5 million hit on lost fee income. There are also issues relating to the group bookings, particularly in the United States.
"Our broad geographical spread combine
