HOLIDAY INN OWNER PLANS A CLASSIER BUDGET CHAIN

IHG’s first hotel opened in 1946 in Belem, Brazil It now has hotels in 100 countries around the world Brands include Crowne Plaza, Intercontinental and Holiday Inn 798,000 IHG rooms around the world £9bn has been returned to shareholders over the past

INTERCONTINENTAL Hotels Group (IHG) has unveiled a chain of budget hotels which will have gyms and free snacks and drinks.

As part of a growth plan, the hotels company will launch its Avid brand internationally, with the first site opening in Oklahoma City in the US later this year.

IHG, which also owns Holiday Inn and Crowne Plaza, said the hotels will be aimed at business and leisure travellers with pricing at the ‘upper end of budget’.

IHG said it will also snap up smaller boutique hotels in a bid to enter the high-end luxury market.

It will also launch a hotel chain this year which will be priced similarly to its upmarket Crowne Plaza brand, aimed at business travellers.

Despite the ambitious plans, shares fell 4.7pc as the company revealed it would not pay out its special dividend to investors this year.

IHG’s sales increased 4pc last year to £1.2bn, while profits were up 7pc to £542.5m.

The hotel company’s shares fell 2.75pc, or 129p, to 4568p.