Monday, 7 January 2008

More Hotels...Buying Intercontinental Hotels

I bought some Starwood the other day, and was looking into more hotel groups. Intercontinental Hotels (IHG) are the world's largest hotel operator by number of rooms, and are listed in London. I just paid 772.2 pence for about $15,500 of stock (actually bought £7,722 worth).

A good summary of the group is in this Forbes article from a couple of months ago. I like how they have sold off a lot of their property portfolio and are concentrating on managing hotels. The only downside is that the bulk of their revenue comes from the US, but at least the company looks like it is moving its focus to Asia. Here is an article from last April discussing how they are going to franchise Holiday Inn in China, and here is another one from today talking about a Holiday Inn that has just opened in South Africa.

2 Year Chart of IHG

This is one that I suspect will take time to perform, but given the stock has sold off over 50% in about 6 months and is at lifetime lows today (not sure if they just floated 2 years ago, but stock chart has less than 2 years of data), I like the entry point.


No comments: