Intercontinental Hotels Group (IGH) boasted ‘very healthy’ demand in the first half after revenues were boosted by the reopening of the Chinese economy.
The Holiday Inn and Crowne Plaza owner’s global hotel room revenue (RevPAR), a key profitability measure in the industry, surged by 24 per cent year-on-year in the six months to the end of June, taking total group sales to more than $2.2billion (£1.7billion).
The FTSE 100 group’s RevPAR in Greater China was up by 94 per cent year-on-year, while sales in Europe, the Middle East and Africa were up 42 per cent. Sales in the Americas were up by 11 per cent.
New CEO of IHG Hotels & Resorts, Elie Maalouf, released a statement following the results which show that ‘travel demand is very healthy’
The group told investors the disparity in growth reflects ‘the differing levels of travel restrictions that were in place’ in the first half of 2022.
IHG reported an operating profit of $584million, a 62 per cent jump year-on-year over the six months.
Demand moderated in the second quarter but remained strong, with global RevPAR for the three months up 17 per cent year-on-year and 9.9 per cent on pre-pandemic levels.
The hotel group opened 21,000 new rooms across its 108 hotels in the first half and completed 47 per cent of an ongoing $750m share buyback programme.
New CEO of IHG Hotels & Resorts, Elie Maalouf, told investors on Tuesday:
‘Our teams have delivered strong results in the first half, with financial performance, hotel openings and signings all significantly above prior year comparisons. Travel demand is very healthy, with RevPAR improving year-on-year across all our markets and exceeding 2019 pre-pandemic peaks for four consecutive quarters.’
Commenting on the results, Neil Shah, director of research at Edison Group said: ‘Looking to the future, IHG can begin to forecast its finances and growth in a post-pandemic world.
‘With a strategic focus on expanding its brand portfolio, including an anticipated launch of a new mid-scale conversion brand, IHG prospects seem promising, continuing to innovate its brand and offerings to stay competitive in the demanding hospitality market.’
IHG shares were up 2 per cent to £57.72 in early trading on Tuesday.
Maalouf takes charge May announcement that then chief executive Keith Barr was stepping down after 30 years at the company.
She added: ‘The investments we’re making in our powerful enterprise platform are delivering results for guests and owners – be it the breadth of attractive brands we now have in place, the excellent impact of our new mobile app, or the strength of our IHG One Rewards programme, which has seen enrolments jump by +60% since launch a year ago.
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