The ratings on U.K.-based international hotel operator InterContinental Hotels Group PLC (IHG) reflect the quality of the company's geographically well-diversified portfolio of international brands, such as InterContinental in the upscale hotel segment and Holiday Inn in the mid-scale segment. The ratings are offset, however, by cyclical business and consumer spending, the high capital-expenditure needs of the hotel business, and exposure to instances of travel disruption in various parts of the world. In the year to December 2003, the EBITA reported by the more stable franchised businesses remained flat year on year, at £193 million ($312 million). The share of the managed and franchised businesses of the total hotel profits before regional and central overheads and amortization rose to 68%, from
