How the InterContinental hotel chain came into being
InterContinental is an international hotel chain that many associate with luxury and high status. However, the hotels originally served as accommodations for flight crews and passengers in the event of flight delays.
The chain originated as a division of Pan American World Airways. In 1946, owner Juan Trippe decided to expand the business by opening hotels. The hotels would accommodate pilots after flights, as well as passengers waiting for their planes. Trippe prioritized guest comfort, ensuring the accommodations met high standards.
Success of the first hotels
In line with the region’s development policy at the time, the first InterContinental hotels appeared in Latin America. By 1950, the chain had two hotels, one in Brazil and one in Chile. At the same time, hotels were being built in Uruguay and Venezuela. The business grew rapidly, with new complexes opening in Colombia, Bermuda, and Havana. By 1958, the chain had 16 hotels in South America and the Caribbean.
This success inspired Juan Trippe to explore new markets. In 1961, the InterContinental hotel brand debuted in Lebanon and, soon after, in Indonesia and Australia. Gradually, the chain entered the European market.
Notably, InterContinental achieved the seemingly impossible at that time. It became the first hotel brand to operate in Eastern European countries: These were the Iron Curtain states of Yugoslavia, Poland, the Czech Republic, Hungary, and Romania. From 1968 to 1974, InterContinental was the first American hotel company to operate in this region.
From the beginning, InterContinental sought to provide maximum comfort for wealthy, demanding guests. Famous guests played an important role in strengthening its image. These guests included Ronald Reagan, Martin Luther King, Prince William, and Margaret Thatcher, among others.
A new stage of development
Although Trippe’s hotel business was thriving, Pan American was experiencing financial difficulties. To stay afloat, management decided to sell the hotel. This marked the beginning of a series of sales and purchases for InterContinental:
1. In 1981, the parent company sold the Grand Metropolitan hotel brand. The deal was worth US$500 million.
2. Seven years later, Grand Metropolitan sold the Seibu Saison chain from Japan. During this period, the business’s value grew to US$2.3 billion.
3. In 1998, Bass PLC became the business’s new owner. The purchase price was approximately US$3 billion.
In 2003, InterContinental became part of the IHG conglomerate and a key brand within it. Since then, the company has been actively developing and growing. It includes several hotel brands, including Hotel Indigo. Additionally, IHG has opened its academy to train hotel staff. The academy includes an employee exchange program within the network and between different hotel brands.
