Intercontinental shares rise 4% on first quarter profit surge

Intercontinental Hotel Group has reported first quarter operating profits up 23 per cent and revenue growth up eight per cent from US$362m to $396m on the same period last year.

The announcement from outgoing CEO Andrew Cosslett set the company’s shares almost four per cent higher, with RevPAR up 6.9 per cent amid signs of a bounceback in the big US market. IHG recorded its highest growth Stateside since the second quarter 2006 with an 8.4 per cent rise.
China continues to prove the most powerful growth market for IHG, however, posting an18.8 per cent jump in growth.

Cosslett said: “We delivered a strong set of results in the first quarter. Our strategy to free up capital to drive growth for our brands is on track.”

Cosslett, who leaves his post 30 June, said IHG was committed to a joint venture with Duet Hotels to take Holiday Inn Express into India, developing 19 new hotels by 2016. 

Cosslett reported two post-quarter end hotel sales in the US, with proceeds “substantially above book value”.

“We have recently committed to enter into a joint venture with Duet Hotels to take Holiday Inn Express into India, developing 19 new hotels by 2016,” he said,adding that The Venetian and The Palazzo Las Vegas had been added to the system as first InterContinental Alliance Resorts, boosting room supply by almost 7,000.

“We continue to look for further opportunities of this kind and remain confident about the outlook for the rest of the year,” Cosslett said.

IHG net debt dropped from $1.077bn to $846m.

Cosslett’s replacement has been announced as IHG Financial Director Richard Solomons.
 
Do you have a news story for CN? Email: pcolston@mashmedia.net

Paul Colston

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Paul Colston

Managing Editor, Conference News & Conference & Meetings World.

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