U.K.-based hotelier InterContinental Hotels Group PLC (IHG) reported 9% growth in revenues and a 35% rise in operating profit in the first quarter of 2011 compared with the same period of 2010. We expect the ongoing recovery in the global lodging industry to continue, with mid-single-digit growth in revenue per available room in the U.S. and further improvements in international markets. We are therefore raising our long-term corporate credit and senior unsecured debt ratings on IHG to 'BBB' from 'BBB-'. The stable outlook reflects our view that IHG is likely to continue to post steady EBITDA growth and generate meaningful free operating cash flow, with adjusted funds from operations to debt above 25%-30%. On June 22, 2011, Standard&Poor's
