The overhaul of the U.S. tax system has allowed one of the globe’s most prominent hotel groups to expand into fresh territories, the chief executive of InterContinental Hotels Group (IHG) said Monday.
Speaking to CNBC on the sidelines of the globe Economic Forum (WEF) in Davos, Switzerland, Keith Barr said the modifications to the U.S. tax system — finalized in December — were a boon for the company.
“This kind of’s actually going to be a positive boost to the economy, from the U.S. along with probably globally, at least for the short-term,” Barr said.
“This kind of enables us to continue to invest in our business along with we’re launching fresh brands around the globe. We’ve launched a fresh mainstream brand from the U.S. along with we’re taking our brands into additional markets like China along with Asia. So This kind of allows us to fund those things.”
In December, IHG said the tax system overhaul, which saw corporation tax slashed by 35 percent to 21 percent, could result in a “significant” one-off credit from the financial year when the bill can be signed into law. This kind of also said that will initial estimates were that will the bill could reduce IHG’s group effective tax rate by mid to high single-digit percentage points by January 1, 2018.