The ratings on InterContinental Hotels Group PLC (IHG) reflect Standard&Poor's Ratings Services' view of the group's global scale; strong position in the midscale Holiday Inn segment; market-leading customer loyalty and development pipeline programs; proven reservation and marketing systems; and its fee-based and asset-light franchised and managed business model. These factors are partially offset by IHG's dependence on the U.S., the lodging industry's cyclicality, and the group's track record of material past shareholder returns. After a tough 2009, IHG rebounded strongly in 2010, led by improved business traveler trends and higher occupancies, robust sales growth in China, and the re-launch of the Holiday Inn brand. In the year to Sept. 30, 2010, revenues-per-available-room (RevPAR) rose by an annualized 8.1%
