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IHG President on Hotel Industry

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  • Description

    IHG president of the Americas Kirk Kinsell weighs in on the state of business.

  • Duration 3:33
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On so that's what -- -- has to -- with OK so let's talk about Intercontinental Hotels Group.

Positive interim earnings results out last week now offerings the headline today.

One billion dollars back to shareholders.

So how is -- -- -- staying so competitive in this tough global economic time.

Joining us in an exclusive -- hurt himself is constantly tells the president.

Of the American pet sir thank you so much for joining -- let's first talk about.

Higher rewarding your shareholders so it's one billion in all through 500 million special dividend.

And a 500 million dollar share buy back program -- going this route to cash.

Well thank you -- it's consistent with strategy that we -- on the day that we went through.

2003.

In fact we will have.

Return over nine billion dollars in cash to our shareholders over that last almost ten year period.

A lot's happened so 2003 by way of the economy especially recently -- tough macro picture out there and if you -- it.

-- results by way of revenue per available room which is a key metric in your industry rev par as you call it.

The US and China were very strong upwards of 7% growth but Europe.

Lagging right just about 12%.

Growth for Europe we got the Europe's GDP data basically flat no growth there so how you continue to offset that problem in Europe.

Well we -- don't have much exposure to the southern part of Europe and two particularly Greece which we all here and talk a lot about.

So the nice thing about our model is we have gone global hotel company in.

There always going to be markets there are cyclical and some that are going to be a little bit depressed.

But for the rest of the world as you pointed out we're performing very well.

About fantastic so you've got business luxury properties names like.

Intercontinental crown Plaza Hotel indigo and then you have the less expensive if you -- -- the family.

Interest in properties Holiday -- candle would suites which commence doing better.

Well certainly all of our brands are doing well on across all regions that generally the strength of our businesses our core which is our middle market that's holiday and the Holiday Inn express brand family interesting is that gonna be -- at all by rising gas prices has -- been.

It hasn't been and we benefit people still wanna travel they still wanna go out -- -- family vacation and more importantly business travelers are always looking for value and Mather companies are managing their travel costs and so please -- to the strength of holiday and.

You've also got this interesting specialty brands especially in China.

-- at a time pronouncing -- president who will -- help me out here brand.

-- it's cut his strategy I'm not mistake in.

In the hotel industry because they're really targeting.

The specifics of the Chinese culture luring people and if so how was this working -- what kind of revenues and generating.

Well wall boxes and a brand -- -- No worries -- we we announced that early with our last announcement in terms -- We've signed a management agreement so it's early days least think -- the first hotel opened up and about 2014.

But more importantly it's a brand that was created by our China team for our China business traveler.

In China so very unique and draws on the insights and the nuances of what.

Chinese are really looking for in terms of their culture and the way in which they travel.

You guys hit all markets there thank you so much -- can sell appreciate -- time pleasure thank you.

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