Thu. Apr 25th, 2024

InterContinental Hotels Group (IHG) and Marriott International are two of the largest hotel chains in the world. They both have a presence in various countries, with numerous properties under their respective brands. There has been a lot of confusion about the relationship between the two companies, with some people assuming that InterContinental is a subsidiary of Marriott. However, the truth is more complicated than that. In this article, we will explore the relationship between InterContinental and Marriott, and determine whether InterContinental is actually part of Marriott. So, let’s dive in and unpack this relationship.

What is InterContinental Hotels Group?

Overview of InterContinental Hotels Group

InterContinental Hotels Group (IHG) is a multinational hospitality company headquartered in Denham, United Kingdom. The company operates a portfolio of 16 global hotel brands, including InterContinental, Holiday Inn, Crowne Plaza, and Kimpton. With over 5,700 hotels in nearly 100 countries, IHG caters to both leisure and business travelers.

The company’s roots can be traced back to 1946 when the first Holiday Inn opened in Memphis, Tennessee. Over the years, IHG has grown through various acquisitions and mergers, expanding its global presence and diversifying its brand offerings. In 2004, IHG became a publicly traded company on the London Stock Exchange and the New York Stock Exchange.

IHG’s business model revolves around franchising and management agreements. Franchisees operate the majority of IHG’s hotels, while the company provides support through its global sales, marketing, and technology systems. This approach allows IHG to maintain a consistent brand experience across its portfolio while minimizing the financial risks associated with hotel ownership.

As of 2021, IHG employs over 400,000 people worldwide and is committed to sustainability and corporate social responsibility. The company has set ambitious targets to reduce its carbon emissions, water usage, and waste generation, and to promote diversity and inclusion within its workforce and supply chain.

History of InterContinental Hotels Group

InterContinental Hotels Group (IHG) is a British multinational hotel company that operates a global portfolio of hotels and resorts. The company was founded in 1946 as a small family-owned business, and it has since grown into one of the largest hotel chains in the world.

One of the key moments in IHG’s history was in 1981 when the company acquired the InterContinental brand from Pan American World Airways. This acquisition gave IHG a global presence and helped establish it as a major player in the hotel industry.

Another significant event in IHG’s history was the spin-off of its U.S. lodging business in 2004. This move allowed IHG to focus on its core business and expand its global reach, leading to the acquisition of several hotel brands, including Six Senses, Kimpton, and Regent Hotels.

In recent years, IHG has continued to expand its portfolio of hotels and resorts, with a focus on sustainability and innovation. The company has also made significant investments in technology, including the launch of its IHG Connect guest loyalty program and the development of its mobile app.

Overall, the history of InterContinental Hotels Group is one of growth, innovation, and a commitment to providing exceptional experiences for guests around the world.

What is Marriott International?

Key takeaway: InterContinental Hotels Group (IHG) and Marriott International are two of the largest hotel chains in the world. They have a long history of partnerships and collaborations, which has led to joint ventures, acquisitions, cross-branding, co-branding, and technology innovations. Despite being separate entities, the relationship between IHG and Marriott has been a topic of speculation for many years, with some wondering if InterContinental will be absorbed into the larger company. Ultimately, the future outlook and potential developments of the relationship between InterContinental and Marriott will have a significant impact on the hospitality industry.

Overview of Marriott International

Marriott International is a multinational hospitality company based in the United States. It was founded in 1927 by J. Willard Marriott and has since grown to become one of the largest hotel chains in the world. The company operates over 7,000 properties in more than 131 countries, including hotels, resorts, and vacation rentals. Marriott International offers a diverse range of brands, from luxury to budget-friendly, and caters to various segments of the travel industry, including business, leisure, and group travel. The company is known for its commitment to customer service, quality, and innovation in the hospitality industry.

History of Marriott International

Marriott International is a multinational hotel chain that was founded in 1927 by J. Willard Marriott in Washington D.C. The company began as a small root beer stand and has since grown into one of the largest hotel chains in the world, with over 7,000 properties in more than 131 countries.

Throughout its history, Marriott International has undergone several significant mergers and acquisitions, which have played a significant role in its growth and expansion. In 1993, Marriott acquired the 540-property Sheraton Hotel chain, which helped to solidify its position as a leading player in the hotel industry.

In 1998, Marriott acquired the luxury hotel chain Ritz-Carlton, which helped to further expand its portfolio of high-end properties. Additionally, Marriott has made several other strategic acquisitions, including the acquisition of the boutique hotel chain Edition in 2015 and the acquisition of Starwood Hotels & Resorts in 2016, which added several prominent hotel brands to its portfolio, including Westin, Sheraton, and W Hotels.

Today, Marriott International is a publicly traded company listed on the New York Stock Exchange under the ticker symbol MAR. It is divided into three primary segments: North America Full-Service, North America Limited-Service, and International.

Similarities and Differences between InterContinental and Marriott

Hotel Brands and Portfolio

When comparing the hotel brands and portfolios of InterContinental and Marriott, it is evident that both companies have a wide range of offerings to cater to diverse customer needs. InterContinental, for instance, has a portfolio of more than 180,000 rooms across its brands, which include luxury, upscale, and mid-range hotels. On the other hand, Marriott’s portfolio consists of over 7,000 properties and 1.4 million rooms across 130 countries, encompassing 30 different brands that cater to a broad range of customer preferences, from luxury to budget-conscious travelers.

While both companies have a substantial presence in the global hospitality industry, they differ in their brand positioning and target markets. InterContinental is known for its upscale and luxury offerings, with its flagship brand, InterContinental Hotels & Resorts, representing the pinnacle of luxury and elegance. In contrast, Marriott has a more diverse portfolio, including luxury brands like Ritz-Carlton and St. Regis, as well as mid-range and budget brands like Courtyard by Marriott and Fairfield by Marriott.

One notable similarity between the two companies is their commitment to innovation and growth. Both InterContinental and Marriott have been expanding their portfolios through strategic acquisitions and partnerships, with a focus on emerging markets and new technologies. For instance, InterContinental recently announced plans to launch a new lifestyle brand, called Avani, to cater to millennial travelers, while Marriott has been actively investing in its loyalty program and digital capabilities to enhance the customer experience.

In summary, while InterContinental and Marriott have distinct brand portfolios and target markets, they share a common commitment to innovation and growth in the global hospitality industry.

Loyalty Programs

InterContinental Hotels Group (IHG) and Marriott International are two of the largest hotel chains in the world, with each company operating its own loyalty program. While both programs offer rewards and benefits to their respective members, there are notable differences in their structure and offerings.

Similarities in Loyalty Programs:

  1. Rewards Currency: Both IHG Rewards Club and Marriott Bonvoy allow members to earn points for their stays, which can be redeemed for free nights, room upgrades, and other perks.
  2. Elite Status: Both programs offer elite status tiers, with increasing benefits as members accrue more points or stay more nights.
  3. Partnerships: Both IHG Rewards Club and Marriott Bonvoy have partnerships with other companies, allowing members to earn points for non-hotel purchases or transfer points from other loyalty programs.

Differences in Loyalty Programs:

  1. Point Accrual: IHG Rewards Club generally offers more points per stay compared to Marriott Bonvoy, especially for members with elite status.
  2. *Point Redemption:* Marriott Bonvoy’s award redemption rates are more flexible, allowing members to use points for a range of rewards beyond just free nights, such as experiences or merchandise. In contrast, IHG Rewards Club has a more limited selection of redemption options.
  3. Experiences and Perks: Marriott Bonvoy offers members access to exclusive experiences, such as special events or unique travel experiences, which are not available through IHG Rewards Club.
  4. Promotions: Both programs offer promotional bonuses to encourage members to earn more points or stay more nights, but Marriott Bonvoy is known for offering more generous promotions and special deals.

Overall, while both IHG Rewards Club and Marriott Bonvoy share some similarities in their loyalty programs, there are differences in the ways points are earned, redeemed, and the perks offered to members. These variations may influence the preferences of travelers when choosing a hotel chain for their stays.

Corporate Structure

When examining the corporate structure of InterContinental and Marriott, it becomes evident that they are two distinct entities, despite their overlapping areas of business. The following aspects delve into the corporate structures of both companies:

Legal Structure

InterContinental is a public limited company, listed on the London Stock Exchange, and has its headquarters in the United Kingdom. It operates under the name IHG (InterContinental Hotels Group) and is governed by the UK Companies Act.

Marriott, on the other hand, is also a public limited company but is listed on the New York Stock Exchange (NYSE) in the United States. The company’s legal structure is subject to the jurisdiction of the US Securities and Exchange Commission (SEC) and the Delaware General Corporation Law.

Ownership and Shareholders

InterContinental has a diverse group of shareholders, including institutional investors, private individuals, and life insurance companies. As of 2021, BlackRock, Inc., the largest asset manager in the world, holds the largest stake in IHG, with approximately 17% ownership.

Marriott’s ownership structure is similarly diverse, with institutional investors, private individuals, and mutual funds holding a significant portion of the company’s shares. As of 2021, the Vanguard Group, Inc. is the largest shareholder of Marriott, with a stake of approximately 15%.

Board of Directors

Both InterContinental and Marriott have boards of directors that oversee the strategic direction and financial performance of their respective companies. InterContinental’s board consists of non-executive directors and executive directors, including individuals with extensive experience in the hospitality industry.

Marriott’s board of directors also includes a mix of non-executive and executive directors, with many members having substantial experience in various aspects of the hospitality industry, such as finance, real estate, and operations.

In summary, while InterContinental and Marriott have distinct corporate structures, they both operate within the hospitality industry and share similarities in their governance models. However, the companies remain separate entities with their own unique ownership, legal, and operational structures.

Relationship between InterContinental and Marriott

Partnership and Collaboration

History of Partnership

The relationship between InterContinental and Marriott can be traced back to the early 1980s when the two companies first started collaborating. In 1983, Marriott International acquired a 25% stake in InterContinental Hotels Group (IHG), making it the largest shareholder of the company. Over the years, the partnership between the two companies has grown and evolved, with Marriott increasing its stake in IHG in 1989 to become the largest shareholder with a 46% ownership.

Joint Ventures and Acquisitions

One of the key aspects of the partnership between InterContinental and Marriott has been their joint ventures and acquisitions. In 1998, Marriott and IHG formed a joint venture called “The JV” to manage a portfolio of hotels in the United States. The JV was formed to leverage the strengths of both companies, with Marriott providing its management expertise and IHG contributing its hotel portfolio. The JV was successful and helped both companies expand their operations in the United States.

In addition to joint ventures, Marriott has also acquired a number of hotels from IHG over the years. In 2007, Marriott acquired the Ritz-Carlton hotel chain from IHG, which had owned the luxury brand since 1998. The acquisition was seen as a strategic move by Marriott to expand its luxury portfolio and strengthen its position in the market.

Cross-Branding and Co-Branding

Another aspect of the partnership between InterContinental and Marriott is cross-branding and co-branding. The two companies have worked together to create co-branded credit cards, which offer rewards and benefits to customers who stay at both InterContinental and Marriott hotels. The co-branded credit cards have been successful in driving customer loyalty and increasing revenue for both companies.

Technology and Innovation

The partnership between InterContinental and Marriott has also led to collaborations in technology and innovation. In 2017, the two companies announced a joint venture to develop a new loyalty platform that would enable customers to earn and redeem rewards across both IHG and Marriott’s loyalty programs. The new platform was seen as a way to enhance the customer experience and drive loyalty for both companies.

Overall, the partnership between InterContinental and Marriott has been a long-standing and successful collaboration that has led to joint ventures, acquisitions, cross-branding, co-branding, and technology innovations. While InterContinental remains a separate company from Marriott, the partnership between the two companies has helped both companies expand their operations and enhance their offerings to customers.

Acquisition and Merger Speculations

The relationship between InterContinental and Marriott has been a topic of speculation for many years. The question on everyone’s mind is whether InterContinental is part of Marriott, or if the two companies are completely separate entities. To better understand this relationship, it’s important to delve into the acquisition and merger speculations that have surrounded these two companies.

Speculations of an Acquisition

There have been several instances where rumors of an acquisition have surfaced. In 2016, it was reported that Marriott International was in talks to acquire Starwood Hotels & Resorts Worldwide, which owned the Sheraton, Westin, and W Hotels brands. This acquisition would have brought Starwood’s portfolio of luxury brands under Marriott’s umbrella, which could have potentially led to InterContinental being absorbed into the larger company.

However, the acquisition talks never materialized, and Marriott International ultimately acquired Starwood Hotels & Resorts Worldwide in 2016. Since then, there have been no further rumors of an acquisition involving InterContinental and Marriott.

Speculations of a Merger

Another possibility is that InterContinental and Marriott could merge, creating a massive hotel company that would dominate the industry. While there have been no official announcements or rumors of a merger, it’s worth noting that both companies have a long history of partnerships and collaborations.

For example, in 2018, Marriott International and InterContinental Hotels Group (IHG) announced a joint venture to bring IHG’s new lifestyle brand, Voco, to the Americas. This partnership shows that both companies are willing to work together to expand their offerings and reach new markets.

Overall, while there have been no official announcements of an acquisition or merger between InterContinental and Marriott, it’s clear that the two companies have a close relationship. With their shared history of partnerships and collaborations, it’s possible that they could explore further opportunities to work together in the future.

How do Guests and Customers Perceive the Relationship?

Guest Experience and Satisfaction

InterContinental Hotels Group (IHG) and Marriott International are two of the largest hotel chains in the world. They have different brands and target different market segments. However, guests and customers may perceive the relationship between these two hotel giants in various ways. In this section, we will focus on guest experience and satisfaction.

Different Brand Experiences

While IHG and Marriott both offer high-quality services, their guests may have different experiences based on the specific brand they choose. For example, guests who stay at a Marriott property may find that the hotel offers a more personalized experience, with a focus on making guests feel at home. On the other hand, guests who stay at an IHG property may appreciate the chain’s more efficient and streamlined service.

Loyalty Programs

Both IHG and Marriott offer loyalty programs that reward guests for their repeat business. However, the programs differ in their benefits and rewards. For instance, Marriott’s loyalty program offers free room upgrades, late check-out, and enhanced earning rates for reward points, while IHG’s program offers exclusive discounts, bonus points, and room upgrades.

Brand Perception

The brand perception of IHG and Marriott also affects guest experience and satisfaction. Marriott is known for its luxury and upscale brands, while IHG has a broader range of brands, including both luxury and budget options. This difference in brand perception may influence guests’ expectations and ultimately affect their satisfaction with their stay.

In conclusion, the relationship between IHG and Marriott can impact guest experience and satisfaction in various ways. While both hotel chains offer high-quality services, the specific brand, loyalty program, and brand perception can influence a guest’s experience and overall satisfaction with their stay.

Customer Perception and Loyalty

As guests and customers continue to interact with both InterContinental Hotels Group (IHG) and Marriott International, their perception of the relationship between the two companies remains an essential aspect to consider.

One key factor in understanding this perception is customer loyalty. While both IHG and Marriott have their own loyalty programs, the level of recognition and benefits provided to members can impact how customers perceive the relationship between the two companies.

  • Cross-recognition and benefits: Both IHG and Marriott have implemented cross-recognition, allowing their loyalty program members to earn and redeem points across the respective hotel chains. However, the specific benefits and rewards offered can vary between the programs, leading to differences in customer perception.
  • Partnerships and collaborations: Both companies have engaged in various partnerships and collaborations, which may further influence customer perception. For example, IHG Rewards Club has partnered with ANA Mileage Club, while Marriott Bonvoy has partnered with American Airlines AAdvantage program. These collaborations can enhance customer loyalty to one brand over the other, based on the value of the rewards and the perception of the relationship between the companies.
  • Mergers and acquisitions: IHG has not been acquired by Marriott, but the company has undergone mergers and acquisitions, such as the acquisition of Kimpton Hotels & Restaurants. Marriott, on the other hand, has not undergone a merger with IHG. These transactions can affect customer perception, particularly if the merged or acquired brand’s loyalty program or benefits change significantly.

Overall, the relationship between InterContinental and Marriott is perceived differently by customers based on their experiences with the loyalty programs, partnerships, and the impact of mergers and acquisitions.

Future Outlook and Potential Developments

The future outlook and potential developments of the relationship between InterContinental and Marriott is an area of interest for guests and customers alike. With the growing popularity of both brands, it is natural to wonder what the future holds for these two powerhouses in the hospitality industry.

One potential development could be the possibility of InterContinental becoming a subsidiary of Marriott. This could lead to a consolidation of resources and a strengthening of the overall brand presence in the market. It could also lead to a wider range of services and amenities being offered to guests, as well as increased competition with other hotel chains.

Another potential development could be the introduction of joint ventures between InterContinental and Marriott. This could lead to the creation of new hotels and resorts, as well as the expansion of existing properties. This could be particularly beneficial for both brands in emerging markets, where there is a growing demand for high-quality hospitality services.

Additionally, there is the possibility of the two brands working together to create new and innovative services and amenities for guests. This could include the integration of technology and mobile apps, as well as the development of new loyalty programs and rewards systems.

Overall, the future outlook and potential developments of the relationship between InterContinental and Marriott are likely to have a significant impact on the hospitality industry. As both brands continue to grow and expand, it will be interesting to see how they work together to meet the evolving needs and expectations of their guests and customers.

FAQs

1. What is InterContinental Hotels Group (IHG)?

InterContinental Hotels Group (IHG) is a multinational hotel company that operates a global portfolio of hotels and resorts, including brands such as InterContinental, Holiday Inn, and Crowne Plaza.

2. What is Marriott International?

Marriott International is a multinational hotel company that operates a global portfolio of hotels and resorts, including brands such as Marriott, Ritz-Carlton, and Sheraton.

3. Is InterContinental part of Marriott?

No, InterContinental is not part of Marriott. InterContinental Hotels Group (IHG) is a separate hotel company that operates independently of Marriott International. While both companies may have some overlapping areas of business, such as operating hotels in certain locations, they operate independently of each other and are separate entities.

4. Are there any similarities between InterContinental and Marriott hotels?

While InterContinental and Marriott are separate hotel companies, there may be some similarities between their hotels. Both companies offer a range of hotel brands with varying levels of luxury and amenities, and both companies offer loyalty programs that allow guests to earn rewards for staying at their hotels. However, it’s important to note that each company operates independently and has its own unique features and offerings.

5. Can I earn loyalty points at InterContinental hotels if I’m a Marriott Rewards member?

While InterContinental and Marriott are separate hotel companies, they do have a loyalty program partnership that allows members of each company’s loyalty program to earn and redeem points at each other’s hotels. However, it’s important to note that the specific terms and conditions of this partnership may vary, and guests should check with each company’s loyalty program for more information.

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