Financial Management - Task 1 A 1 Introduction Companies operations As one of the largest hotel management groups in the world InterContinental

Financial Management - Task 1 A 1 Introduction...

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Task 1 A 1 Introduction Companies operations As one of the largest hotel management groups in the world. InterContinental Hotels Group (IHG) owns, manages, leases and franchised 5348 hotels and resorts in nearly 100 countries and territories around the world. According to the 2017 annual report, 83% (4433) are franchised, an increase of 112 hotels from the previous year. 17% (907) were managed by hotel management companies, with an increase of 62 additional hotels in 2017. Only eight hotels are group owned, this number of hotels remains the same as last year, but the number of rooms has decreased by 54 rooms. The company has more than 798,075 rooms in the world,the largest in Americas, accounting for 62%. followed by the European market with 14%, greater China ranked third in terms of 13%, less in the Asia, Middle East and Africa (AMEA) market, these remaining the same at 11%. Brand portfolio IHG has a large portfolio of hotels under its brand. IHG owns several brands of hotels, ranging from mid-scale to luxury hotels such as the InterContinental Hotel, Crowne Plaza, Candlewood Suites, Holiday Inn, Holiday Inn Express, and Even Hotels to name a few. Under these brands, IHG owns about 5000 properties across nearly 100 countries owning over 800,000 rooms. Main competitors IHG’s main competitors include Marriott International Hotel Group and Hyatt Hotel Group.Marriott International Hotel is one of the main competitors due to the fact that they are a Luxury hotels with four different brand hotels incorporating; The Luxury Collection, Bulgari Hotels,JW Marriott Hotels, and the Ritz Carlton. In addition upper upscale, premium, select and long stay hotels. This is similar to that of IHG, therefore making them a direct competitor.The Hyatt Hotel Group have a wide range of different brands these including full service, select service and all inclusive, again similar to that of IHG, making them a direct competitor. They are primarily mid to large scale premium and luxury hotels including; They have Park Hyatt for Luxury brand, Miraval and Exhale for Wellbeing brand, Grand Hyatt and Hyatt Regency for Premium, Andaz, Hyatt Centric and The Unbound Collection Hyatt for Lifestyle hotels. Hyatt Place and Hyatt house represent Modern Essentials brand, Hyatt Zilara and Hyatt Ziva for an all Inclusive brand and the Vacation Ownership brand in charge by Hyatt Residence Club. Current Industry outlook Remaining competitive in a highly complex global market proves challenging in the hospitality industry. As a result the current industry outlook is ever changing and requires companies to constantly monitor and adapt to these changes. This challenge is increasing due to the shared economy and it is profoundly influencing many industries (Byers, Proserpio & Zervas, 2013). The authors noted that hotels are particularly vulnerable, in particular with Airbnb posing a serious threat in this new shared economy platform (2013). Adopting a strategic and tactical approach to developing an integrated platform through embracing core elements of this shared platform may be

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