The ratings on U.K.-based international hotel operator InterContinental Hotels Group PLC reflect the quality of its geographically well-diversified portfolio of international brands such as InterContinental in the upscale hotel segment, and Holiday Inn in the midscale segment. The ratings are offset, however, by cyclical business and consumer spending, high capital expenditure needs of the hotel business, and exposure to instances of travel disruption in various parts of the world. In the six months to June 2003, the operating profit reported by the more stable managed and franchised businesses remained flat year on year at about £86 million ($140 million). The share of the managed and franchised businesses in the total hotel profits before central costs and amortization rose to more
