IHG reports "solid revenue growth" in half-year results

08 August 2017 by
IHG reports "solid revenue growth" in half-year results

InterContinental Hotels Group (IHG) reports "solid" revenue growth driven by both revpar and rooms in its half-year results to 30 June 2017.

During the first six months of 2017, revenue increased by 2.3% to £657m ($857m) and operating profit increased 8% to £281m ($366m). Profit before tax increased by £21m ($28m) to £250m ($326m).

Global revpar increased by 2.1% in the first half of the year, led by occupancy, up 0.9%. In Europe comparable revpar increased 6.2%, driven equally by rate and occupancy, and UK revpar increased by 6.7%, with strong trading in both London (9%) and the provinces (5.4%).

Keith Barr, chief executive of InterContinental Hotels Group, said: "I feel privileged to be the new CEO of IHG and to have the opportunity to build on the strong performance we have delivered. My focus is on driving an acceleration in our growth rate, by increasing the resources dedicated behind the highest opportunity markets and segments, strengthening our brand portfolio, building on our leading loyalty proposition, and enhancing our competitive advantage through prioritising digital and technological innovation.

"We will continue to focus on enhancing our cost efficiency to generate funds for reinvestment. This, combined with our cash-generative business model and disciplined approach to capital allocation, will drive superior returns to shareholders. While we will always face macro-economic and geopolitical uncertainties, we remain confident in the outlook for 2017."

Ben Flint, a market analyst at City Index, added: "The dividend is up a pleasing 10%, reinforcing the company's reputation as a solid yield play. InterContinental Hotels has either raised or held its ordinary dividend steady for more than a decade now and there's little sign of management changing tack, despite some of its main competitors directing their cash to big acquisitions.

"Strong revenue growth in Europe is encouraging, though a more subdued performance in the US has dragged down group-wide revenue growth compared to the previous quarter. Although the company pinned the fall on the timing of Easter, the relatively weaker US performance may stoke some unease, given fears the Trump administration's immigration policies could discourage inbound tourism."

IHG to launch new midscale hotel brand >>

IHG CEO Richard Solomons to retire >>

IHG hints of "aggressive" expansion plans for boutique hotel sector >>

Robust Q4 for UK hotels boosts IHG in Europe >>

Videos from The Caterer archives

Are you looking for a new role? See all the current hospitality vacancies available with The Caterer Jobs

The Caterer Breakfast Briefing Email

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

Sign Up and manage your preferences below

Check mark icon
Thank you

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

Jacobs Media 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.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking