Search
The Caterer

IHG reports 7% rise in worldwide revenue

06 August 2013 by
IHG reports 7% rise in worldwide revenue

InterContinental Hotels Group (IHG) has reported a 7% rise in revenue to £610m and worldwide revpar growth of 3.7% in its half year results to 30 June 2013.

In Europe growth was slower, with revpar overall up 0.4% year on year, propped up by a 2.2% increase in the second quarter. This was down to the change in timing of Easter impacting trading in a different quarter.

Revpar in the UK was up 1.6%. Revenue in Europe was flat at £134m, while profit increased 6% after adjusting for a £5.8m liquidated damages cost and the sale of InterContinental London Park Lane.

Eight hotels were opened in the six month period, 1,000 rooms of which were Holiday Inn. A further 200 rooms were signed, mostly for the Holiday Inn brand.

InterContinental Hotels Group chief executive Richard Solomons said: "We have delivered a good performance in the first half, with our preferred brands driving revpar growth of 3.7%, including 4.0% in the second quarter. Our global scale has allowed us to reinvest in the business whilst growing margins, resulting in solid underlying profit gains led by our Americas region, and strong cash flows.

"We continue to strengthen our foundation for future growth, signing more than 200 hotels into our pipeline, a notable increase on H1 2012 reflecting our owners' confidence in both IHG and the industry demand drivers.

"Our high quality pipeline, broad geographic spread and fee based model give us confidence in the outlook, despite the ongoing challenging economic conditions in some of our markets."

Tibet activists blockade InterContinental London Westminster hotel >>

The Caterer and hotelkeeper Interview - Andrew Coney, general manager, InterContinental London Westminster >>New InterContinental hotel to form part of £121m development alongside London's O2 >>

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.