Richard North, the InterContinental Hotels Group chief executive, has become a victim of his own revival strategy, and will depart to reflect the company’s refocus on brands rather than buildings.
IHG announced that Mr North, who led the group through the worst hotels downturn in living memory, would step down at the end of the month “by mutual agreement”.
However, Mr North said: “I would have loved to continue to manage InterContinental Hotels as it evolves to become the world’s leading hospitality brand owner.”
The announcement comes the week after LogicaCMG announced that Mr North would quit as a non-executive director “due to other business commitments”.
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Under his leadership since 2002, when IHG was demerged from Six Continents, the company has sold or put on the market more than £2.2 billion of hotels, more than half the portfolio it inherited, while retaining management or franchise contracts.
The strategy is aimed at freeing up capital, with a further £750 million allocated to share buybacks and a special dividend last week, and creating a hotels operator free of property overheads.
Simon Larkin, the ABN Amro analyst, said last week: “What they are doing is profoundly logical. At the end of the process, the company will be less operationally leveraged, less structurally capital intensive and more cash generative.
“Such a business will be more highly valued than an asset-intensive cyclical hotel firm.”
IHG said this morning, however: “Our future is increasingly focused on growing our global brands in a predominantly managed and franchised hotel system.
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“The execution of this strategy needs different leadership skills based on brand development and operations.”
Mr North said: “I recognise that someone else whose whole business background has been developing and managing brands may be better placed to ensure the company achieves this vision and creates maximum value for shareholders.”
David Webster, the IHG chairman, said: “We believe that this is the right time to make this change. It will not in any way affect our core strategy. In fact, it reinforces it.”
Mr Webster will take on executive duties until a successor to Mr North is appointed.
IHG shares stood 13.5p higher at 635p in afternoon trade.