The world’s largest hotel group Intercontinental Hotels Group (IHG) has delivered strong profit growth, with a 17 per cent jump in underlying first-half profits.
New Chief Executive Richard Solomons said IHG had enjoyed “record demand” in the first half. The company delivered a strong performance across each of its regions, he said, “driven both by increased occupancy from business and leisure travellers as well as progressive rate improvement”.
Solomons added: “Clearly these are uncertain times, but we see nothing in our numbers indicating a slowdown”.
In the first half global revenue per available room (RevPAR) grew 6.7 per cent with China (up 12.7%) and the US (up 8.2%) strong markets where the Holiday Inn relaunch is delivering sustained out performance.
Developments in mobile booking sites and apps are now generating over US$10m of revenue a month, IHG revealed, with more quick growth expected.
“We have realised over $140m in the year to date from the sale of our interests in four hotels and have committed to invest over $70m of capital behind our brands,including the roll out of Holiday Inn Express in India and a world class site for Hotel Indigo in New York,” said Solomons.
“Our priorities are to develop our brands, invest in our people and strengthen our revenue delivery systems, thereby creating firmer foundations for growth. I have made a number of senior appointments including Tom Singer as CFO and Tracy Robbins our EVP Human Resources and Global Operations Support will be joining the Board.”
Richard Solomons succeeded Andy Cosslett in July. IHG is a main sponsor of London 2012 and, commenting on the widespread rioting in the city, he said: “It’s not helpful having pictures beamed all around the world, but the Olympics are 12 months away and London is a very resilient city. We’ve had these sorts of issues before and come through them.”
IHG has 51 hotels in London, with 10,000 rooms. The capital has been one of the group’s strongest performing markets, with Revpar growth of 13.5 per cent in the second quarter.
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