The ratings on InterContinental Hotels Group PLC (IHG) reflect Standard&Poor's Ratings Services' view of the group's sizable and high-quality system of hotels targeting multiple price segments; its focus on less-capital-intensive forms of hotel tenure (with hotels operated principally through management contracts and franchises rather than owned or leased); fairly resilient business model in terms of free cash flow generation (as highlighted in the last recession); its strong presence in a diverse range of international markets; and its long-term relationships with a growing portfolio of third-party hotel owners. These factors are somewhat tempered by the cyclical nature of lodging, as evidenced by the material industry downturn in 2009, and the susceptibility of the travel and leisure industry to global
