With the sale of the Intercontinental Hong Kong now complete for £928 million, can we now expect another special dividend on this key investment in the hotel industry?
Don't bank on it !
Three years ago when the industry was still recovering from 2008 and TRAVELODGE was heavily loss making, Intercontinental executive Peter Gowers left IHG to become CEO of TRAVELODGE. Now it is a really successful business and is rumoured to be on the market for £1000 million.
What better use could IHG make of its Hong Kong cash than add Travelodge to its existing brand names for the Holiday Inn Express brand is way behind in the budget hotels market.
The IHG interim figures and dividend will be announced on Thursday so there may not be the big dividend hike we were expecting.
TRAVELODGE would be preferable
Either way IHG remains one of our KEY Investments.