American hotel chains have shown interest in acquiring or merging with British companies because of

InterContinental Rebuffs $10 Billion Takeover Bid By American Suitor InterContinental Hotels Group PLC was the target of a takeover bid launched by an unnamed delta airline fares hospitality group in the US, but it reportedly turned down a $10 billion offer after talks broke down
Sources reveal that the British operator of hotel chains including Holiday Inn and Crowne Plaza had considered the bid made by an American counterpart, but eventually snubbed the offer for being too low. Although the identity of the mystery bidder is still unknown, speculation is rife that it might be Starwood Hotels Resort Worldwide Inc. (HOT) , the operator of the Sheraton and Westin hotel chains. Starwood Hotels, valued at around $15 billion, has previously shown interest in expanding its global brand presence delta airline fares through acquisitions.
Although no deal was agreed upon, sources say that InterContinental is preparing for a new and higher offer, and has not ruled out the chance that another American chain could also come in with a fresh acquisition bid.
Other US companies lining up could include Hilton delta airline fares Worldwide Holdings Inc. (HLT) , the largest hotel operator based on market cap, and Marriott International Inc. (MAR) . Given Marriott s ongoing troubles and Hilton s hefty debt position, however, the chances for a bid coming from these two are slim.
American hotel chains have shown interest in acquiring or merging with British companies because of the added benefits of being incorporated in the UK, which include saving on tax expenses and avoiding taxes on international profits through a process called inversion.
In March, US-based Chiquita Brands International Inc. (CQB) announced a merger with Fyffes PLC, and said that the combined company will be incorporated in Dublin, Ireland to take advantage of lower taxes and tax inversion.
Shares of InterContinental Hotels are up 6% today on the London Stock Exchange. The stock has risen nearly 17% this year as the company showed steady improvements in performance amid growth delta airline fares in its business and leisure travel, which has led to higher demand for hotel rooms.
Earlier this year, InterContinental said its pre-tax income grew 10% in 2013 to around $1 billion. The London-based hotel group, a major component of the FTSE-100 index, is one of the largest hotel operators in the world, with just under 4,700 properties under its brands. It has around 686,000 hotel rooms worldwide.
The company has undergone a major transformation over the past few years as it moved from directly owning hotels to managing and franchising properties under its brand name. InterContinental now has only 10 properties that operate as company-owned hotels, with another 600 under management. The rest operate under third-party franchise deals.
In March, the company sold off the InterContinental delta airline fares Mark Hopkins in San Francisco and divested its 80% stake in the InterContinental New York Barclay, generating substantial cash which it then returned to shareholders in the form of a $750 million special dividend. It is expected to unload its direct ownership in further properties in the coming months, including the Le Grand hotel in Paris and the InterContinental Hong Kong, as it moves toward a leaner delta airline fares cost structure to focus on managing its franchise brands.
InterContinental is also building up its hotel pipeline as it ramps up expansion into emerging markets; almost 10% of the world s hotels rooms under construction are part of the InterContinental brand. The company announced the launch of Hualuxe this year, an upscale hotel brand for the Chinese market, that it is hoping will be well-received by the country s wealthy during their travels delta airline fares to first and second-tier cities for business.
Global delta airline fares hotel groups have bounced delta airline fares back well over the last year, especially given how bad the situation was during the financial delta airline fares crisis, when a drop in demand had the lodging industry on its knees. New construction activity is on the rise, and with room rates rising, the prospects certainly look good.
While the main reason behind a potential takeover of InterContinental may be the advantage of lower taxes by virtue of being incorporated delta airline fares in the UK, American acquirers will also be considering InterContinental s strong delta airline fares development pipeline, improving operational metrics, and the benefits of increasing refranchising activities.
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