IHG operating profit up 2%, while turnover drops 8%
InterContinental Hotels Group (IHG) has reported a 2% increase in operating profit alongside an 8% drop in turnover, in its half year results to 30 June.
The company, owners of the Crowne Plaza, Hotel Indigo and Holiday Inn brands saw operating profit grow from $656m (£496m) to $673m (£509m), while revenue fell from $915m (£692m) to $838m (£634m).
With underlying profit increasing 10% to $345m and an 11% increase in underlying earnings per share, the IHG agreed to increase the interim dividend by 9%.
The global revenue per available room (revpar) rate increased by 2%, spurred on by a 1.4% rise in room rates, with revpar for the second quarter increasing by 2.5%. In the UK revpar increased by 1.4%, led by strong trading in the provinces.
Richard Solomons, chief executive of IHG, said: "We continue to execute our well-established strategy as we deliver consistent, high-quality growth and generate significant operating cash flows.
"Despite the uncertain environment in some markets, we remain confident in the outlook for the remainder of the year."
Kensington Close hotel to re-brand as Holiday Inn >>
IHG points to London hotel supply increase amid slowing market >>
Looking for a job? See all the current hotel vacancies available with The Caterer Jobs >>
Latest video from The Caterer