LONDON— Six Continents said it will hold off major acquisitions for at least six months until hotel asset prices fall in response to a downturn in the United States and the aftermath of September 11, said a Reuters report. The firm, which is the worlds second-largest hotels group with its Inter-Continental, Crowne Plaza and Holiday Inn brands, said it had turned cautious on acquisitions after April this year, as it saw the effects of a slowing U.S. economy. “We will hold off until asset prices respond, said group Chairman Ian Prosser, indicating that hotel asset prices may take six to 12 months to react to the downturn. He was speaking at the groups annual results news conference. Earlier this year, Six Continents held takeover talks with U.S. hotels group Wyndham International, while media reports have linked the London-based group with a 5.3 billion pound ($7.53 billion) bid for U.S. rival Starwood Hotels and Resorts. But Prosser indicated that after making two acquisitions early in the year— Posthouse in the UK and the Inter-Continental Hong Kong hotel— the group was happy to sit back and wait for prices to fall. Chief Executive Tim Clarke said the group was particularly keen to expand its upmarket hotels in key cities in North America and to add more sites for its Inter-Continental and Crowne Plaza brands, and also expand its mid-market brand Holiday Inn in Western Europe. The company believes there is more pain yet to come in the hotels sector due to the U.S. downturn and September 11 attacks, and mid-2002 would be a good time to start looking for bargains in the sector from hotel groups saddled with high debt. SOURCE: Reuters
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