A financial boost from the U.S. tax overhaul is prompting one major company to expand into new territories. InterContinental Hotels Group is planning to launch new brands in major markets, including China and Asia.
Changes in U.S. tax law cut corporate taxes from 35 percent to 21 percent. The new tax law substantially reduces IHG’s tax rate, providing a significant credit. These extra funds will fuel the company’s growth and investment in business interests around the world.
With more than 5000 properties in close to 100 countries, IHG is one of the world’s largest brands. More than 1500 hotels are in development. The company has recently opened a property in the United Arab Emirates. China is also a big part of the expansion plan strategy. It has the fastest growing world economy. The changing financial landscape makes the country ripe for the development of hotels. IHG already has 300 hotels in China but will build more.
The U.S. tax cuts are widely seen as positive for the business sector. Some business experts predict the reduced business taxes will bring a boost to the U.S. economy, as well as the worldwide economy because of the extra cash companies have to reinvest.