Marcato Mulls Strategy for IHG's Future

SAN FRANCISCO—Activist investor Marcato Capital Management is following up its earlier call for Intercontinental Hotels Group to consider merging with a large competitor by retaining Houlihan Lokey as a financial advisor in conducting a strategic review of how to enhance IHG’s shareholder value. A spokeswoman for UK-based IHG tells GlobeSt.com the company, the world’s largest hotelier with seven brands and 4,700 properties, has no comment.

Marcato says the review will focus on alternatives that include improving capital structure and/or capital allocation and strategic transactions. “Marcato believes current, favorable market conditions presently exist to significantly enhance IHG shareholder value, which may not be available in the future,” the company says. Marcato intends to engage in “direct dialogue with IHG’s board of directors and management with respect to the merits of its proposals, as well as broad discussions with IHG shareholders and industry participants.”