New hotel investments in Istanbul Turkey

InterContinental eyes new investments in Turkey

    InterContinental, an international hotel chain, is expected to increase its investments in Turkey. The decision may be announced during the company’s ‘Business Performance’ meeting held at the Ceylan InterContinental Istanbul on Monday and Tuesday. The hotel has been selected as the location of the event due its success in the European region

David Webster of InterContinental says business will 'continue to be tough in 2010,' but hopes the strengths of his company will help it rebound this year.

David Webster of InterContinental says business will 'continue to be tough in 2010,' but hopes the strengths of his company will help it rebound this year.

The year 2009 was difficult for the hotel industry, but 2010 might be better, according to the head of a major international hotel group.

Business will “continue to be tough in 2010” David Webster, the chairman of the InterContinental Hotels Group, or IHG, told the Hürriyet Daily News & Economic Review in advance of an industry conference in Istanbul on Monday and Tuesday.

It is also expected that IHG will announce a decision to increase its investments in Turkey.

Webster and other IHG executives are in Istanbul to address franchise and company managed hotel owners and general managers for Eastern Europe.

Participants will meet at the Ceylan InterContinental Istanbul hotel Monday and Tuesday to discuss business performance and share best practices. Held in Istanbul for the first time, the 2009 EMEA Hotel awards will also be presented during the course of the two-day meeting.

Successful operations

Webster said the company IHG had had a difficult 2009 but hoped the group’s global scale, fee-based business model, powerful system and skilful management positions would help it benefit from the upturn when it comes.

IHG has more guest rooms than any other hotel company in the world, with upwards of 645,000 rooms in 4,400 hotels across 100 countries. Its guests make over 130 million stays in IHG hotels every year. IHG also operates seven hotel brands, including the InterContinental, Crowne Plaza, Hotel Indigo, Holiday Inn, Holiday Inn Express, Staybridge Suites and Candlewood Suites.

Strong organic growth

The corporation aims to grow by making its brands the first choice for guests and hotel owners. In 2005, it committed to increase the number of rooms it had by 50,000 to 60,000. The top end of this target was exceeded in June 2008, six months ahead of schedule. By the end of 2008, it had reached 82,000 net rooms, he said.

This was achieved through organic growth – meaning through new rooms under existing brands and not through acquisitions, Webster said.

Strategically, IHG has built the hotel industry’s strongest operating system and has remained focused on the biggest markets and segments, he said.

The chain’s strength is based on advertising and marketing campaigns, 10 global call centers, 13 local language Web sites, an 8,000-strong sales force, Priority Club Rewards – the world’s largest hotel loyalty scheme which has 48 million members – as well as brand awareness which stems from its worldwide presence, according to the chairman.

Furthermore, the company’s focus on the biggest markets ensures that it concentrates resources on opportunities that will provide the greatest return, he said.

Improving the performance of its brands by ensuring they are the first choice for guests is a priority, said Webster, adding that generating high returns from its hotels by improving revenue and efficiency is also important.

The corporation also intends to strengthen its organization by investing in people and ability to do business through strong partnerships within the company and with owners across the world, he said.

As a business model, IHG operates hotels in three different ways – as a franchisor, a manager and on an owned and leased basis, he said, adding that the company primarily focuses on managing and franchising hotels.

The 65-year-old Webster has been the non-executive chairman of IHG since Jan. 1, 2004, having joined the board in April 2003. Prior to joining IHG, he was a co-founder of Safeway and retired as chairman in 2004.

IHG was begun by Pan-American World Airways following World War II and was a product of increased mass civilian international travel. Pan Am sold its interest in IHG in the 1980s.

Source:http://www.hurriyetdailynews.com

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