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Shareholder Activism from a Complexity Theory Lens
Corporate Boards at the Edge of Chaos: Shareholder Activism from a Complexity Theory Lens Thomas Kyritsis A thesis submitted in partial fulfilment of the requirements of the University of West London for the degree of Doctor of Philosophy June 2020 ABSTRACT The increasing influence of offensive shareholder activism driven by hedge funds has become a significant issue for corporate boards. The intervention of shareholder activists often challenges current strategies and the status quo of the corporate governance of publicly listed companies. Previous studies have utilised agency theory as a lens to explore and explain corporate governance issues. However, these studies have been unable to capture the complexity and the dynamics of Board interactions and provide a comprehensive view of the impact of shareholder activism. This thesis adopts complexity theory as an exploratory framework that views a Board as a complex co-evolving system and examines holistically its multiple interactions with shareholder activists and other stakeholders that together create the company’s social ecosystem. A multi-case study approach was chosen with three international hotel companies selected for analysis. The latter had all undergone one or more attacks from shareholder activists over the same period. Online documentary information was collected and used to construct three case studies. Template analysis was chosen as a tool to analyse the selected cases. A template framework was developed based on complexity concepts, principles and language to evaluate the impact of shareholder activism. The findings reveal that offensive shareholder activism influences the decision-making processes of the Boards of Directors. Macro-environmental conditions, a company’s vulnerabilities, shareholder activists’ attacks, Boards defence mechanisms and changes in a target company emerged from the analysis of the three cases. -
IHG") Will Today Hold a Seminar for Analysts and Investors Entitled “Building Profitable Scale”
23 November, 2010 Presentation to Investors and Analysts InterContinental Hotels Group ("IHG") will today hold a seminar for analysts and investors entitled “Building Profitable Scale”. Andy Cosslett, Chief Executive, will outline the favourable environment and growth opportunities for branded scale players in the hotel industry and describe IHG’s approach to development in different markets around the world. He will be joined by Richard Solomons - Chief Financial Officer and Head of Commercial Development; Keith Barr - Managing Director Greater China; Jerry Huang - Senior Vice President Operations Greater China and Kirk Kinsell -President EMEA, who will give more detailed presentations on IHG’s leading position and considerable growth opportunities in India, China and the Middle East. As part of the presentations the following forecasts for 2010 performance will be provided: In Greater China for the full year 2010 for the managed and franchised business, after an allocation of Asia Pacific regional overheads, IHG is forecasting revenues of $61m and operating profit of $21m. In the Middle East for the full year 2010 for the managed and franchised business only, IHG is forecasting revenues of $58m and operating profit of $44m. Commenting on this announcement, Andy Cosslett, CEO of IHG said: “Although China, the Middle East and India are very different markets in terms of their maturity, we will demonstrate today that they represent significant growth opportunities for IHG. Our leading positions, the strength of our brands and our long term relationships with local partners in each of these territories give us a significant competitive advantage.” The presentation will commence at 2pm UK time today. -
View Annual Report
InterContinental Hotels Group PLC PLC Group Hotels InterContinental Broadwater Park Denham, Buckinghamshire, UB9 5HR Telephone +44 (0) 1895 512 000 Fax +44 (0) 1895 512 101 Annual Report and Financial Statements 2008 Annual Report and Financial Statements Holiday Inn Hotel & Suites Oakland-Airport, California, USA ™ make a booking at www.ihg.com Great Hotels Guests Love IHG Annual Report and Financial Statements 2008 Investor information and Financial calendar 105 Highlights Financial calendar 2008 Payment of interim dividend of 6.4p per share (12.2 cents per ADR) 3 October Financial year end 31 December 2009 Preliminary announcement of annual results 17 February Final dividend of 20.2p per share (29.2 cents per ADR): Ex-dividend date 25 March Record date 27 March Record net room additions Total gross revenue‡ from † Total system room revenue Announcement of first quarter results 12 May all hotels in IHG system divided by the number Annual General Meeting 29 May up 20% at 34,757 rooms of room nights available. Final dividend of 20.2p per share (29.2 cents per ADR): Payment date 5 June ‡ Total room revenue from Announcement of interim results 11 August up 7% to $19.1bn franchised hotels and total Interim dividend: Payment date October Total hotels open under hotel revenue from managed, owned and leased hotels (not Announcement of third quarter results 10 November IHG brands Continuing revenue revenue attributable to IHG, Financial year end 31 December as it is derived mainly from up 6% to 4,186 hotels up 5% to $1,854mº hotels owned by third parties). -
12 July, 2007 IHG Announces Sale of Intercontinental Montreal
12 July, 2007 IHG announces sale of InterContinental Montreal InterContinental Hotels Group PLC ("IHG") announces the sale of the 357 room InterContinental Montreal, Canada to Sweden-based Pandox AB ("Pandox") for CAN$49 million (US$46 million) in cash. IHG will continue to manage the hotel under a 30 year management contract, including contract renewals. Pandox is purchasing the hotel from IHG, which owns 74.11 percent, and Cadim, a division of the Caisse de depot et placement du Quebec. which owns 25.89 percent. Pandox will invest a further CAN$11 million (US$10 million) to renovate the hotel. Pandox also owns the Crowne Plaza Brussels City Centre, Crowne Plaza Antwerp and Holiday Inn Brussels Airport. The hotel generated revenues of US$22.5m, EBITDA of US$3.6m and EBIT of US$2.8m in 2006, and had a net book value of US$30.2m at 31 March 2007. The sale is a continuation of IHG's strategy of growing its management and franchise businesses and reducing asset ownership. Since 2003, IHG has disposed of 178 hotels globally with a net asset value of over £2.9bn, with proceeds in excess of net book value. "We had previously announced that the InterContinental Montreal was on the market as part of our ongoing strategy to reduce our asset intensity. Our objective is only to own real estate where it drives the growth of our brands," said Andy Cosslett, Chief Executive of IHG. "The InterContinental Montreal is a great property with tremendous potential to be a top of mind, leading business and meetings hotel in the city centre, said Anders Nissen, CEO, Pandox AB.