IHG Organisational Changes
InterContinental Hotels Group PLC
11 October 2005
11 October 2005
IHG ORGANISATIONAL CHANGES TO FOCUS ON GROWTH
In its half year results announcement on 8th September 2005, InterContinental
Hotels Group ("IHG") set out a new strategy to drive growth, and a new rooms
growth target of 50,000 - 60,000 net new rooms by the end of 2008. IHG announces
today organisational changes to enhance IHG's operational effectiveness, and
best position it to achieve its growth ambitions in its managed and franchised
operations from its focus on owners and guests.
IHG will maintain its current regional organisational structure. Its three
regions of the Americas, EMEA and Asia Pacific will continue to operate under
the control of Stevan Porter, Richard Hartman and Patrick Imbardelli
respectively. Going forward, there will be more consistent processes and
standards across the three regions, to reflect the growing globalisation of
IHG's owners and guests, and an increased level of support from central
functions.
Andrew Cosslett, Chief Executive, InterContinental Hotels Group, said:
"These changes to the organisation follow on from our stated strategy to become
the number one choice for hotel owners and guests worldwide. As our business
model becomes more aligned globally on managing and franchising we will be
working more closely together to accelerate growth. I am confident that these
changes will support our strategy effectively and deliver results."
Details of organisational changes
Franchise strategy
Hotel franchising, IHG's core business model, is well developed in the US market
but less developed in other areas of the world. To aid the faster global
development of this business model, IHG has created the new role of Global
Leader Franchise Strategy, with responsibility for the development and
deployment of best practice in franchising globally.
Stevan Porter, President, the Americas will take on this newly created role, in
addition to his existing responsibilities. The considerable expertise Steve has
gained in developing and running a franchise network in the Americas region will
help IHG as it further develops this core business model across each of its
regions.
Owner relationships and finance
IHG continues to focus on further developing its relationships with owners. To
assist in this initiative, Richard Solomons, in addition to retaining his
existing responsibilities as Group Finance Director, will work to develop IHG's
relationship management programme with major global hotel investors,
particularly in the upscale arena.
Richard will also assume direct responsibility for strategy, asset management,
and will continue his role as Chairman of Britvic.
IT
Class leading management and revenue systems are an essential part of the
strength of IHG's operational system, which makes IHG an attractive choice for
hotel owners. Maintaining the strength of these systems is a key priority, as is
gaining a greater ability to interrogate and use customer data currently
embedded in IHG's hotel reservation systems and Priority Club Rewards loyalty
programme.
To reflect the importance placed on this function, a new position on the
Executive Committee has been created, of Chief Information Officer ("CIO"). The
CIO will report directly to the CEO. A search for candidates is underway.
Brands and Marketing
As IHG continues to focus on its managed and franchised business models, the
strength of its brands remains a key area of focus. A new role of Chief
Marketing Officer has been created to lead the development of IHG's worldwide
brand priorities, create a consistent brand management process and build new
mechanisms to link IHG's marketing teams around the world.
Peter Gowers will take up this new role, in addition to his existing
responsibilities as Executive Vice President, Global Brand Services.
Human Resources
IHG continues to focus on developing and retaining its people. To bring greater
consistency to this, regional HR teams are to be aligned globally under the
Global Head of Human Resources.
IHG's current Head of Human Resources, Jim Larson, has resigned with effect from
the end of this year, to pursue other professional interests in his home country
of the US. It is with regret therefore that a search has been put underway for
Jim's successor.
Corporate Social Responsibility
IHG maintains a strong focus on Corporate Social Responsibility.
Richard Winter, Executive Vice President Corporate Services, General Counsel and
Company Secretary, will continue the development of IHG's Corporate Social
Responsibility agenda.
For further information, please contact:
Investor Relations (Paul Edgecliffe-Johnson)
+44 (0) 1753 410 176
Media Enquiries (Leslie McGibbon)
+44 (0) 1753 410 425; +44 (0) 7808 094 471
Note to Editors:
InterContinental Hotels Group PLC of the United Kingdom (LON:IHG, NYSE:IHG
(ADRs)) is the world's largest hotel group by number of rooms. InterContinental
Hotels Group owns, manages, leases or franchises, through various subsidiaries,
more than 3,500 hotels and over 537,000 guest rooms in nearly 100 countries and
territories around the world. The Group owns a portfolio of well recognised and
respected hotel brands including InterContinental(R) Hotels & Resorts, Crowne
Plaza(R) Hotels & Resorts, Holiday Inn(R) Hotels and Resorts, Holiday Inn
Express(R), Staybridge Suites(R), Candlewood Suites(R) and Hotel IndigoTM, and
also manages the world's largest hotel loyalty programme, Priority Club(R)
Rewards, with over 26 million members worldwide. In addition to this,
InterContinental Hotels Group has a 47.5% interest in Britvic, one of the two
leading manufacturers of soft drinks, by value and volume, in Great Britain.
InterContinental Hotels Group offers information and online reservations for all
its hotel brands at www.ichotelsgroup.com and information for the Priority Club
Rewards programme at www.priorityclub.com.
For the latest news from InterContinental Hotels Group, visit our online Press
Office at www.ihgplc.com/media.
This information is provided by RNS
The company news service from the London Stock Exchange