Author of www.HotelLawBlog.com
27 December 2006
Hotel Lawyer on international hotel investment. Over the past two days, the shares of InterContinental Hotels Group Plc — which describes itself as “the world’s biggest lodging company” — rose substantially, fueling speculation that it has become a takeover target. The shares are up approximately 8% since December 22, 2006 (and 49% for 2006). Citing the Guardian, Bloomberg says there are rumors of a buyout firm making an offer at a “significant premium” to current stock prices. Some think a ₤5.7 billion (U.S.$11.2 billion) offer may be made.
Who are the likely buyers? Aside from the financial aspects of the takeover, what does the interest in InterContinental mean? How does this play into the big push into international hotel investments I have been talking about on www.HotelLawBlog.com in some of the most recent postings? Or into the power of brands, or the rush to hotel-enhanced mixed-use development?