Financial Performance of Intercontinental Hotel Group - Assignment Example

the information from the financial statement and ratios has been used to analyze the performance of the selected two companies with three other major competitors (i.e. Millennium & Copthorne Hotels Plc., Safestay, and Minoan Group Plc.) in the respective industry. The financial information and data used for the analysis are extracted from the financial website () and published annual reports of the company for the period 2010-2013. The findings are presented based on the profitability financial ratios (indicators) that are used to determine the financial position and performance of the selected companies in the hospitality industry of the UK. The main objective of the study is to compare the performance of the main company with its major competitors in the industry.

The financial analysis of the competitors allows for determining the prevailing trends in the industry that provides an insight into the performance of the company among its competitors. The structure of the present report is outlined as below: Intercontinental Hotel Group is an American brand of luxurious hotel operating more than 183 hotels and resorts in over sixty countries worldwide. It was initially established by Pan American World Airways in Brazil in 1946. However, Intercontinental Hotel Corporation was then sold to Grand Metropolitan in 1981 in the United Kingdom.

In addition, the company operates more than 4,000 franchised hotels in different countries (InterContinental Hotel Group PLC, 2014). In 2013, the World Travel Awards awarded Intercontinental Hotels & Resorts as the World’s Leading Hotel Brand 2013. Intercontinental Hotels and Resorts operate under different portfolios to meet diverse needs. The core competency of the company lies in its high-quality growth that has addressed the needs and developed strong relationships with its customers (InterContinental Hotel Group PLC, 2014).

The company has sustained its edge in the industry through the adaption of technology, strategic alignment, and market demand that has positioned the company as a major structural hotel to anticipate socio-economic trends. Despite slow growth in the GDP of the United Kingdom and consumption patterns in recreational sectors, the company has strived to attain a strong market position in United Kingdom Hotel Industry.