IHG profits leap 22% on back of $1bn Holiday Inn makeover

The biggest hotel group in the world, InterContinental
Hotels Group (IHG) increased its operating profits by 22 per cent to US $444m,
with revenues up six per cent to $1.63bn.

The figures, announced 15 February, were better than
analysts had expected and some now say IHG is ready for more acquisitions
following the successful $1bn relaunch of its Holiday Inn
brand.

That revamp led to a five per cent revenue rise for the
brand, and Crowne
Plaza is next in line for
an IHG makeover.

The annual results also show a $64m loss has been turned
into a profit of $397m.

IHG Chief Executive Andrew Cosslett, described 2010 as
“an excellent year”.

“By focusing on our brands and using our scale,” said
Cosslett, “We delivered six per cent growth in revenue per available room
(RevPAR) and signed more rooms into our pipeline than in
2009.”

Cosslett added that the “asset light” strategy would be
continued with the InterContinental New York Barclay being put on the
market.

Looking ahead, Cosslett said a robust pipeline would
drive medium term net system growth of 3-5 per cent.

The group continued to expand in
China where is has opened 24
hotels in 17 cities, although Germany proved the strongest market for IHG in
Europe in terms of RevPAR (up
18.4).

IHG owns InterContinental Hotels, Holiday
Inn, Holiday Inn Express, Crowne Plaza and Hotel
Indigo.

Do you have a story for Conference News? Email: pcolston@mashmedia.net

Paul Colston

Author

Paul Colston

Managing Editor, Conference News & Conference & Meetings World.

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