The ratings on InterContinental Hotels Group PLC (IHG) reflect Standard&Poor's Ratings Services' view of its global scale; strong position in a variety of hotel segments, particularly the midscale Holiday Inn and Holiday Inn Express brands; market-leading customer loyalty and development pipeline programs; proven reservation and marketing systems; and its less operationally-geared fee-based and asset-light franchised and managed business model. These factors are partially offset by IHG's significant dependence on the U.S.; the lodging industry's inherent cyclicality and exposure to security-related travel disruptions and foreign exchange risks; negative demand trends and margin compression as a result of the global economic slowdown; and the group's significant financial risk profile. In the year to Sept. 30, 2009, revenues-per-available-room (RevPAR) fell by
