May 30, 2012 · 0 Comments
Analysts at Numis are saying that “hotel industry consolidation is inevitable at some stage” and that this grouping could very well be one of them.
Together Marriott and IHG would command 9% of the worldwide supply with around 8,200 rooms.
According to the Telegraphs article, Numis calculated that such a deal could be worth $8.7bn (£5.5bn) in total.
“The strategic rationale for a merger between InterContinental and Marriott is compelling,” said Numis. “First of all the strategic growth plans for the two businesses are remarkably similar. Both, for example, have had a long-standing focus on reducing hotel ownership and pursuing management and franchise contracts.
“Secondly, both companies are pursing global growth opportunities by establishing a strong presence in key gateway cities, continuing to develop in large established markets and looking to expand in emerging markets, notably China.”