Brief history of IHG: Essay

The history of intercontinental is rooted in an unlikely industry that traces back to 1777. William Bass was the visionary of a brewery company, Bass, that was based in the UK, and had acquired a number of well-known brewery companies up until the 1960s. These additions made Bass one of the largest brewers and pub owners in the UK. It was not until 1988 that Bass decided to move into the hotel industry with its purchase of Holiday Inns International. A stroke of luck and timely business interests made this acquisition more opportune than ever envisioned. The following year legislation passed the â€Å"Beer Orders,† that limits the number of pubs major brewers can own. Consequentially, Bass limits their number of Pubs and focuses on further hotel developments. The ensuing decade significantly shapes Intercontinental as it is recognized today. In 1990 Bass buys North American Holiday Inn business and launches Holiday Inn internationally. Holiday Inn Express is developed in 1991 to serve the limited service segment and Crowne Plaza was branded in 1994 to appeal to the upscale market. Bass takes another journey in the field of hospitality in 1995 with its purchase of the Harvester restaurant chain. Late in 1996, Bass again tries to reemerge in the pub industry, but was met with unwavering barriers. Franchising becomes apart of the business outline of Bass in 1997 when it decides to sell their North American mid-scale properties to private owners flying under the same Bass branded flags. 1998 brought forth the most noteworthy change in Bass’s purchase of the InterContinental hotels. This was the first addition that brought a Bass brand to an upper-scale market. In 2000 it sells Bass Brewers and changes the company’s name to 6Continents and in 2001 acquires the European Posthouse Chain. It later purchases InterContinental Hong Kong and with these acquisitions 6contienets develops a strong hold on the Asian Pacific travel market. In 2002 the company divides into two separate entities, one for hotels and the other for soft drinks. On April 15, 2003 the name of the hotel sector is officially changed to the InterContinental Hotels Group. In 2004 the addition of Hotel Indigo is made and Staybridge Suites UK launches in 2005. 2006 was another year for IHG’s Global expansion to Asia with its joint venture with All Nippon Airways, which is the largest hotel operator in Japan.