IHG expands Greater London portfolio

<p>IHG has purchased two more hotels in London.</p>

The expansion of InterContinental Hotels (IHG) has moved up a gear, with the company confirming it has purchased two more hotels in the Greater London area.

But investors were unimpressed with the move and despite the share price of the firm rising in the early stages of trading this morning (April 2nd), the gains were wiped out later in the day.

IHG announced that it has bought both the Hotel Indigo London – Barbican and Holiday Inn – Watford Junction, meaning that the company now has all six of its current European brands in its Greater London pipeline. The firm already runs InterContinental London – The O2, Crowne Plaza London – Albert Embankment, Staybridge Suites London – Vauxhall and Holiday Inn Express London – Ealing.

Holiday Inn Watford Junction will be a 92-room property, while the Hotel Indigo London – Barbican is set to have 101 rooms and will run under a franchise agreement with longstanding owner partner Sanguine, which already works with IHG to operate a number of UK hotels.

Chief executive of IHG in Europe Angela Brav stated that the news all six of the company's current European brands now have a presence in Greater London is "just fantastic", while she also highlighted that it "demonstrates the continued momentum in the market".

She said: "We see plenty of room to grow here and these signings demonstrate the ability of our brands to penetrate markets across Europe both old and new. IHG's relationship with our owners is absolutely key in maintaining long-term sustainable development and I'm thrilled to see us all growing together."

Partner brands

IHG has a broader family of nine brands in nearly 100 countries and works with operators such as Sanguine and Nine Hospitality, which will run Holiday Inn Watford Junction.

Sanguine chairman Simon Matthews-Williams said: "This is our first flurry into London and demonstrates our confidence in the brand and complements our other Hotel Indigo projects in Liverpool, Birmingham, Newcastle and Manchester."

Although IHG shares rose early this morning, by 13:39 BST they were only 0.14 per cent up compared to the start of the trading session on the London Stock Exchange.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.