IHG Boosts Presence in Ecuador - Analyst Blog
In a concerted endeavor to strengthen its South American
Intercontinental Hotels Group plc
) unveiled a 122-room Holiday Inn branded property in association
with BPO Asesores Empresariales S.A. in Guayaquil, Ecuador. The
property marks the second IHG-branded hotel in the country, the
first being Holiday Inn Express Quito.
Intercontinental, the world's largest hotel group by number of rooms, also plans to open a Holiday Inn Quito Airport hotel in 2016. Intercontinental introduced its economy brand, Holiday Inn in the U.S. in 1952. The brand, previously renowned as a motel chain, belongs to the upper-moderate tier and comprises small-to-mid sized properties. Intercontinental presently boasts 42 Holiday Inn hotels and Holiday Inn Express hotels throughout Latin America and the Caribbean.
Of late, Ecuador has attracted the attention of several hoteliers owing to its emerging market status. The city of Guayaquil where the recently opened property is located serves as Ecuador's main port, business center and home to several prime business enterprises.
Guayaquil is also a commercial, financial and cultural hub and there are several manufacturing industries based in the city. Apart from Intercontinental, Wyndham Worldwide Corp. ( WYN ) also recently opened a 179-room hotel in Guayaquil. Starwood Hotels & Resorts Worldwide Inc. ( HOT ) has a Sheraton and Marriott International Inc. ( MAR ) has a Courtyard by Marriott Hotel in Guayaquil.
Coming back to Intercontinental's latest property, it is strategically positioned in close proximity to the city's convention center, shopping venues as well as international airport and is expected to cater to both leisure and business travelers.
InterContinental has proven brand equity in Latin America. It has been operating in the region for about 65 years and has more than 190 hotels in Mexico, Central and South America and the Caribbean. We believe the new property will strengthen its brand presence in the region as well as align with its growth strategy.
STARWOOD HOTELS (HOT): Free Stock Analysis Report
INTERCONTL HTLS (IHG): Free Stock Analysis Report
MARRIOTT INTL-A (MAR): Free Stock Analysis Report
WYNDHAM WORLDWD (WYN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research