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Wednesday, February 21, 2018

What Will IHG Buy? + Hotel Brand Showdown + Next-Gen Luxury

February 21, 2018 View in browser

Note From the Editor

Buy or build? InterContinental Hotels Group revealed its intention during its earnings call Tuesday to buy a luxury brand or two to shore up its position in the sector. After Wyndham's deal to acquire La Quinta and now this, it looks like hotel industry consolidation is the gift that keeps on giving.

Meanwhile, when it comes to choosing a flag, Skift Research in its latest report tells U.S. hotel owners that affiliating with Marriott or Hilton would mostly likely be an opportune choice. The devil is in the details, however, and each owner must consider their own particular situation.
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InterContinental Hotels Wants to Buy Luxury Brands
Under previous CEO Richard Solomons, IHG had looked to fill "white space" in its portfolio and it looks like this plan is continuing under his successor. Despite having a well-established luxury brand, the area is something of a weak spot for the company, with no true high-end offering. It sounds like IHG is well on the way to rectifying this.

New Skift Research Brand Matrix Suggests Hotel Owners Evaluating Brands Should Look to Marriott and Hilton
While brand considerations must be made on a property-by-property basis, Skift Research's proprietary Brand Matrix analysis ranks Marriott and Hilton at the top.

Six Flags Will Consider Opening More Parks Year-Round
Six Flags had a good year, but a look at the bottom line shows a benefit from tax reform and lower compensation expense. The company is focusing on improving its underlying business, and keeping profitable parks open year-round is likely to help.

Choice Hotels Sees WoodSpring Suites Deal as a Breakthrough in Extended Stay
Choice CEO Pat Pacious has demonstrated he's not one for a sleepy start as he settles into his new role as CEO. He's hit the ground running with the rollout of a new booking system and an acquisition that will help the company play ball in a very competitive midscale and extended stay landscape.

Travelport Is Diversifying With Strong Growth in Payments Tech
How is Travelport competing against much bigger companies like Sabre and Amadeus? By creating technology solutions its clients actually want to use while expanding in the world's fastest-growing regions for travel.

Targeting a New Microgeneration of Luxury Travelers
Just when you started having it up to here with ballyhooed buzzwords like millennials, authenticity and experiential travel, along comes J. Walter Thompson with a whole new compendium of marketing terminology. Let's see what sticks.

Japan Is Upping Its Tourism Game Before the 2020 Olympics
Japan lags far behind its Asian tourism competition in attracting Western visitors. As the 2020 Tokyo Olympic Games approach, the country is adopting a new strategy for landing on the region's tourism medal stand.

The Tricky Business of International Restaurant Franchising
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