IHG refutes rumours about possible Starwood deal

Parinaaz Navdar, August 2nd, 2015

InterContinental Hotels Group has responded to rumours it was in talks with Starwood Hotels & Resorts about a possible merger.

Various media outlets, including FT, reported over the weekend the two hotel operators had held early stage discussions to create what would become the largest hotel group in the world.

However, a statement on IHG’s website says “The Board of Directors of IHG states that it is not in talks with Starwood with a view to a combination of the businesses”.

Starwood first revealed it was exploring the idea of a sale following weak Q1 performance during an earnings call.

Fritz van Paaschen also stepped down as CEO earlier this year.

Last month, the operator also announced plans to spin off its vacation timeshare division into a separate publically-listed company.

Starwood Hotels and Resorts currently operates 1200 properties in 100 countries.

IHG’s portfolio comprises 4800 managed or franchised hotels in 100 countries. Earlier this year, the group acquired boutique hotel operator Kimpton Hotels & Resorts in a deal worth $430 million.