InterContinental Hotels and Hyperloop TT on way to U.A.E. | Calamatta Cuschieri

​Expo 2020: Hyperloop TT and InterContinental Hotels plan to expand their business in Middle East

The Dow industrials ended lower at 0.16% on Wednesday as IBM’s shares got walloped; however, gains in shares of energy-related firms helped the broader market post modest gains.

The S&P 500 index advanced 0.1%, at 2,708.64, even as six the index’s 11 main sectors registered a loss, led by a 0.9% decline in consumer staples. Energy shares led the gains, up 1.6%, while industrials gained 1% and materials advanced 0.7%.Meanwhile, the Nasdaq Composite Index closed at 0.2%, at 7,295.24.

Hyperloop TT is planning to expand in Abu Dhabi by 2020.

Hyperloop Transportation Technologies wants to build a high-speed transportation system in the Middle East that can reduce the travel time between the likes of Dubai, Abu Dhabi and Saudi Arabia.On Wednesday, HTT said it will begin building a hyperloop track in Abu Dhabi with the aim of having it operational by 2020.

The company signed an agreement with real estate developer Aldar Properties PJSC, the firm behind Yas Island's Formula One circuit.

The track will be developed close to the Expo 2020 site and Al Maktoum International Airport, on the border of Abu Dhabi and Dubai.

HTT plans to build the initial 10 kilometer track in several phases. Gresta, the Hyperloop CEO, did not disclose how much the project would cost the company and how much a ride will cost, but he explained that the technology uses renewable energy that guarantees a price ticket minimal. The company is already discussing future projects in 11 countries, including Saudi Arabia.

HTT began building a prototype of the hyperloop system earlier this month in Toulouse, France. The company said it expected delivery of the first passenger pod later in the year.

InterContinental Hotels is gearing up for the Expo 2020.

InterContinental Hotels Group CEO, Keith Barr announced that he sees an incredible long-term market in London and the U.K., shrugging off the uncertainty fueled by the vote to quit the European Union.

The company thinks that can grow more globally.

Barr said that while buying assets in the U.K. isn’t consistent with the group’s strategy, “partnering with key strategic owners is something we’re very focused on”.

Barr, who took over from Richard Solomons in June, is focusing on developing the company’s luxury offerings to capture market share following its purchase of Kimpton Hotels & Restaurants in 2014. InterContinental has about 80,000 rooms in its luxury division, which delivered $4 billion in revenues in 2017, plus a further 20,000 rooms in the pipeline. But the CEO also said he sees rising demand for mid-range hotels especially in countries like Saudi Arabia, where the government is focusing on developing tourism as it tries to diversify away oil.

Barr said 75 percent of the planned expansion will take place in Saudi Arabia and the United Arab Emirates, where Dubai is gearing up to host Expo 2020. He expected the event to help revive a U.A.E. market currently struggling with supply exceeding demand.

 

This article was issued by Linda De Luca, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

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