IHG ‘targeting Fairmont and Movenpick’

InterContinental Hotels Group is reported to be weighing bids for rivals Fairmont and Mövenpick after ruling itself out of a multi-billion-pound merger with Starwood.

IHG was last week forced to deny it was pursuing a deal with Starwood following reports that the two had held early-stage talks over creating the world’s biggest hotel operator.

Senior City sources reported by the Sunday Times said IHG and Starwood — which runs the Sheraton and Westin brands — discussed a deal earlier this year but “talks never got off the ground” because of regulatory hurdles.

Starwood is now said to be a target for French hotel giant Accor and Wyndham Worldwide.

IHG is now eyeing Canadian group Fairmont and Swiss-based hotel management firm Mövenpick, according to the newspaper.

Fairmont was put up for sale earlier this year. Deutsche Bank is advising the company, which is majority owned by the government of Qatar.

Mövenpick is controlled by the billionaire von Finck family of Germany and operates 100 hotels. The company is also working with Deutsche to assess potential bids.

IHG could face strong competition from Asian sovereign wealth funds if it entered the race for Fairmont and Mövenpick.

IHG declined to comment, while Fairmont and Mövenpick did not respond to requests. Deutsche also declined to comment, the Sunday Times said.

Share article

View Comments

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.