IHG operating profit up 2%, while turnover drops 8%

02 August 2016 by
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."

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TagsFinance and Hotels
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