InterContinental Hotels Group Plc (IHG), the world’s largest hotel group by number of rooms, continues to expand its footprint in Latin America with its recent opening at Maracaibo in Venezuela. The hotel features 14,500 square feet of meeting space including 252 rooms, 300 self-contained parking spaces, and ball-room as well as guest rooms along with other amenities. The hotel is owned by Venezuela-based Promociones Hoteleras S.A., under the InterContinental banner, and managed by InterContinental’s America operating division.
InterContinental’s emergence in Venezuela dates back to early 1950s. Maracaibo is the country’s second-largest city after Caracas, which is densely populated with around two million residents. From a business point of view, much of the country’s crude oil and refinery products are sourced from Maracaibo. Given the dominant position in Venezuela’s petroleum industry, we believe InterContinental Hotels Group is strategically well placed for expansion in this region.
Last month, the hotelier inaugurated the first-ever hotel in the city of Cuiabá, Brazil, which is known for its location in the exact geographic center of Latin America. This was the company’s 13th property in Brazil. InterContinental was first established in Brazil in 1946. With the World Cup, in 2014, and Olympics, in 2016, the country remains one of the most lucrative areas for hotel expansion. Given the crucial prospects, a major competitor of InterContinental Hotels, Starwood Hotels & Resorts Worldwide Inc. (HOT), also plans to double its portfolio in Latin America.
InterContinental has a proven brand equity in Latin America with 64 years of operations behind it in the continent and 190 hotels in Mexico, Central and South America and the Caribbean. We believe the opening of these new properties will strengthen its brand presence in the region, as well as meet its ongoing strategy for growth.
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