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