Skift Travel News Blog

Short stories and posts about the daily news happenings around the travel industry.


IHG Doesn’t Rule Out Public Listing Move From London to New York

1 year ago

InterContinental Hotels Group (IHG Hotels & Resorts) CEO Keith Barr told the Financial Times this week that “several shareholders” had asked his team at an investor roadshow last month if it would consider a switch away from listing on the London stock market to New York’s exchanges.

Barr told FT reporter Oliver Barnes: “There’s no clamoring” for a switch in listing from shareholders, and management was “not currently considering” the matter, but acknowledged “that could change at some point in the future.”

Barr added that London was “not a very attractive place” for listed companies and called on authorities to encourage more liquidity and loosen regulations.

In a follow-up piece on Friday, the Financial Times Lex column offered some analysis:

“For IHG, moving its shares to the US would make sense. The Americas, led by the US, are its biggest regional market by both revenue and operating profit.

Analysts assess IHG using a forward enterprise value (market value plus net debt minus cash) to a multiple of earnings before interest, tax, depreciation and amortization, a proxy for cash profits. The ratio is currently about 13 times, which is roughly in line with its five-year pre-pandemic average.

This means the group trades cheaply to US peers operating similar “asset-light” models. Marriott trades on more than 14 times and Hilton nearly 16 times, according to data provider S&P Capital IQ.

Even so, that gap does not look huge. Barr will want to weigh up the costs of moving the primary listing against the benefits of pricier shares.”

The carpet is not always plusher in neighboring rooms.”

FT’s Lex column
IHG CEO's interview with the FT


Marriott’s India Operator Samhi Hotels Refiles Draft Papers, Cuts IPO Size

1 year ago

India-based hotel ownership and asset management platform Samhi Hotels has refiled draft papers with the Indian stock market regulator Securities and Exchange Board of India (SEBI) to raise an initial public offering (IPO) of around $120 million.

The Goldman Sachs-backed company that operates hotel chains like Marriott, Hyatt and IHG in India, had earlier filed a draft red herring prospectus with SEBI in September 2019 to raise around $238 million.

Samhi had obtained the markets regulator approval in November 2019, to float the initial share-sale, but the company at that time did not go ahead with the launch.

Last week, while reporting the Yatra earnings, Skift had talked about the subdued sentiments in the Indian stock market, as a result of which many companies wanting to launch their IPOs were said to be in a “wait-and-watch” mode.

Hospitality platform Oyo too disclosed last week that it is reducing the size of its proposed initial public offering to between $400-$600 million, a steep reduction from its earlier plan of $1.1 billion.

The company would be using net proceeds from the IPO towards the repayment of debt of the firm and its subsidiaries, payment of interest and other general corporate purposes.

As of February 2023, Samhi Hotels has the third-largest inventory of operational keys (owned and leased) in India. The company has a portfolio of 3,839 keys across 25 operating hotels in 12 cities, including Bengaluru, Hyderabad, National Capital Region, Pune, Chennai and Ahmedabad.

The company is also the largest owner of the Fairfield by Marriott and Holiday Inn Express brands in India. For the financial year ended March 2022, the company reported an increase of 90 percent in revenue to $40 million, as against $21 million in the previous fiscal.


Oyo Plans to Double Premium Hotel Count in Indonesia to 400

1 year ago

Oyo, the India-based budget hotel chain and booking platform, plans to double its premium segment hotel count in Indonesia from around 200 properties to over 400 by the end of 2023.

Announcing its plans to double its portfolio, Oyo on Friday said the demand for premium accommodation options is expected to grow significantly in Indonesia in 2023.

The hospitality operator said it is targeting a mix of business and leisure destination such as Jabodebek, Java and Bali, Sumatra, Kalimantan, and Sulawesi.

Currently, Oyo offers accommodation in the mid-premium segment through Townhouse Oak, Townhouse, Collection O and Capital O.

Indonesia is one of the most mature markets for Oyo in terms of scale and unit economics, according to Ankit Tandon, global chief business officer and CEO, Southeast Asia and Middle East.

Indicating a steady rebound in business travel after pandemic induced travel restrictions ebbed in Indonesia, Tandon in his blog last month noted that Oyo has served 253 corporates in 2022 compared to only 75 corporates in 2021 recording a 237 percent year-on-year growth. 

Oyo said it has intensified its efforts to identify premium properties across all key regions and efforts are in full steam to onboard and equip them with latest technological tools, increase their visibility and in turn improve their revenue.

“We will identify premium properties and equip them with the latest tech tools to improve their revenue and visibility,” Founder and Group CEO Ritesh Agarwal said in a social media post.

In 2022, Indonesia saw around 633 million to 703 million domestic tourist trips while the tourism ministry said it is targeting up to 7.4 million international tourist arrivals and 1.2-1.4 billion domestic tourist movements in 2023.

“Our focus on expanding the premium hotel portfolios in line with the government’s plans to strengthen hotel industry to meet the requirements of the growing number of inbound and corporate tourists looking for well-priced mid-segment and premium hotels,” Tandon said.

A report by property consultancy firm JLL noted that green shoots are emerging for the hotel sector with occupancy levels expected to reach above 50 percent this year.

JLL also predicts an investment of $300 million in 2023 in this sector, which is the highest since 2013.

Oyo said it plans to play the role of a catalyst in this growth with a three-pronged strategy – maximising local market potential, technological innovation to address market pain points and strong collaboration with industry stakeholders.

Having entered Indonesia in 2018, Oyo has since recorded 15 times growth and its bookings from May-November 2022 rose 90 percent compared to same period in 2021. 

The hospitality tech company that looks to go public in the Indian stock market with its long-anticipated initial public offering (IPO), has set a deadline of mid-February to refile its draft red herring prospectus with the Indian stock market regulator.