Kevin Ryan, CPA/Partner, Citrin Cooperman
IHG® Hotels & Resorts certainly has a lot to celebrate, starting with an incredible growth story. Over the past five years, IHG has acquired or launched six new brands: Six Senses® Hotels Resorts Spas, Regent® Hotels & Resorts, Vignette™ Collection, voco™ hotels, avid® hotels and Atwell Suites™. Most recently, IHG reached an important milestone with its 6,000th open hotel. The company looks to further expand its portfolio by 30 percent with 1,800 hotels in the development pipeline, with significant focus on growth in the luxury segment where IHG is positioned as one of the top two hotel chains.
THE FEDERAL FUNDS RATE is the interest rate targeted by the Federal Reserve. It is the interest rate banks charge each other for overnight loans. After the recent cut on Oct. 30, 2019, the third cut this year, the rate will hover between 1.5 percent and 1.75 percent. The federal funds rate is not the rate used by banks for lending to individuals and businesses; that is the prime interest rate, currently at 4.75 percent. Since 1994 banks commonly calculate the prime interest rate as the federal funds rate plus 3 percent (in this case 1.75 percent plus 3 percent). Every U.S. bank sets its own prime rate; however, most utilize the same one.