Chris Mumford on IHG’s new Global Management Structure

"IHG Remakes The Globe"

September 18, 2017 – Hotel Analyst's Katherine Doggrell looks at Keith Barr's first act as CEO of the InterContinental Hotels Group , reorganising the group's geography.

"The move sees the creation of a new operating region, Europe, Middle East, Asia & Africa, leading to two regional CEO appointments, as speculation over the future of the company deepens," she comments. Quoting IHG, Doggrell says "although the EMEAA region would be headquartered in the UK, it would operate through sub-regional divisions based in a number of locations, including Singapore, to ensure the business remains close to hotel owners, guests and colleagues”.

Looking for commentary from industry insiders on IHG's restructuring, Doggrell speaks to AETHOS' Chris Mumford. Mumford highlights "The clear winner in IHG’s organisational restructuring is Kenneth Macpherson’s air miles account. Overseeing the vast super-region that is Europe, Middle East, Africa and Asia will likely see him spend more time at 35,000 feet than on terra firma. Newly appointed CEO, Keith Barr, appears to splitting his world into two: the Americas and the rest of the world, which is reminiscent of the Hilton Hotels Corporation/Hilton International and Hyatt structures of old, although those were much smaller businesses at the time."

He adds "it remains to be seen how the sub regional structure unfolds but the operating synergies between Asia and Europe are not immediately apparent and Macpherson will do well if he can keep up with what is happening in each market. Owning groups may feel that some extra distance has been created between themselves and IHG’s top leadership and the function of sub market heads will be even more critical. China should be in good hands with Jolyon Bulley at the helm although Jan Smits and his well developed owner relationships across the region will be a loss. It will be interesting to see how this structure serves IHG going forward. I do not expect to see any of their competitors following suit.”

To read Hotel Analyst's full article, click here.