Six Continents set for $1b investment

Six Continents is to invest $1b (£644m) in its 140 Inter-Continental hotels worldwide over the next five years, using some of the money it had promised to return to shareholders by the end of this year. The five-star chain hopes that the move will put it in pole position once markets recover and will enable hotels to be built and refurbishments to take place, said chief executive Tim Clarke.

Six Continents has been looking for ways to invest the cash it banked after the £2.3b sale of its brewing and unbranded pubs in August 2000. At the interim results earlier this year, it said it would buy back up to £1b in shares if it had not found a suitable investment by December.

However, the company continued to play down reports that its shareholders want it to demerge its hotel and pub divisions to allow a more focused approach to each area. "We are considering the options, and demerger is one of them," said a spokesman.

The Grand Inter-Continental in Paris is closed for refurbishment and will reopen in May 2003. The May Fair Inter-Continental in London will close next January for a 19-month refurbishment. Newly built hotels are planned for Boston, Seattle and Warsaw over the next five years.

John Bamsey, area president Europe, said Milan and Munich topped the wish list for an Inter-Continental hotel closer to home. Expansion would be through a mixture of managed and owned but not franchised hotels.

by Jenny Webster