IHG’s Cosslett: Why Imbardelli had to go

Andy Cosslett, global chief executive of InterContinental Hotels, flew to Singapore on Wednesday, June 13. By the next day, the whole world knew why he had flown 10,000 km from his London office to the company’s Asia Pacific office.

It was to contain a crisis he knew would erupt in less than 24 hours from his touchdown in Changi.

As the news hit the media in London that day that Patrick Imbardelli, chief executive of IHG Asia Pacific, had resigned following revelations that he had lied on his CV, his team in Singapore had already been braced for the news.

Imbardelli, who moved to Singapore in 2000 to take over the marketing reins and later became CEO, had built up a close-knit team. Just last week, I had been in the office, interviewing him on a variety of subjects including his first stint in Asia when he was general manager of the Saigon Floating Hotel.

He was, as usual, polished and personable. He made coffee, chatted with staff in the pantry and looked relaxed throughout the interview. Even when his secretary interrupted and told him he had five more minutes before a conference call was due from London, he appeared in no hurry to end the interview.

It was only 15 minutes later when she insisted that he had to take the call that he ended our interview.

Little did I know that it would be the last time I would interview Imbardelli in his role as IHG Asia Pacific chief.

In a telephone interview on Friday, Cosslett says his message to the team is clear: “We carry on as a business. The region has been very successful under Patrick who has been a wonderful leader. He’s built a great team and we will carry on exactly as planned.

“We will pursue the execution of our strategy. We have enjoyed great growth and we will do the best for our hotel owners.”

Q: How did staff react to the news and what is the company doing to improve staff morale?

Everyone had a different way of reacting. No doubt there was a great deal of shock and sadness. Yesterday, when we announced Patrick’s resignation, some were very emotional.

Today, they are back to work and focused. And as each day goes by, they will carry on working hard. Tony South, who is acting CEO, is very experienced and and has been in the region for many years and has the complete trust of the team.

Q: What was your personal reaction?

I joined IHG in February 2005. Patrick was one of my closest allies on the global executive committee. He was a great supporter of our initiatives and an excellent colleague. That makes it harder to deal with situations like these.

Q: Do you think it was too drastic a decision given the fact that you’ve said he is a wonderful leader and has built up a great business?

The response of the board in a publicly-listed company is to make sure everyone looks after the best interests of the shareholders, and make it safe from accusations of corporate governance. The facts are very clear.

Once the facts emerged and the information is reviewed, the situation is quite clear.

Q: Patrick was considered a rising star in the organization. He was recently awarded Asia Pacific Hotelier of the Year. He was in line to join the board in London. He built a successful business in Asia Pacific. What other responsibilities do CEOs have other than delivering the results?

This has nothing to do with how well liked he is or what a nice fellow he is. The facts emerged, and the fact that he ran a successful operation has nothing to do with the veracity of the individual.

Q: When will you appoint a new CEO?

We are closely reviewing that. This was not something we planned for and we will put more focus on succession planning. While it will be sooner rather than later, it will be months, rather than weeks, before we name someone.

Q: One question everyone is asking is why? Why did Patrick do it?

I can’t answer that. I can only deal with facts at my disposal. The review was very thorough.

Patrick has resigned. He is no longer in the office. He is at home and I am sure he will take some time to evaluate the situation, and move on. He is a talented man and we wish him well.

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