IHG reports strong first-half profits

09 August 2011 by
IHG reports strong first-half profits

InterContinental Hotels Group (IHG) has reported a strong performance in its interim results for 2011, driven by growth in occupancies and room rates.

In reporting his first set of results as newly appointed chief executive, Richard Solomons said: "Global revenue per available room (revpar) grew 6.7%, with Greater China up 12.7% and the USA up 8.2%, where the Holiday Inn relaunch is delivering sustained outperformance."

"We continue to support our owners, driving guests to our hotels through the most efficient channels. Our industry-leading developments in mobile booking sites and apps are now generating over $10m (£6.1m) of revenue a month and we expect this to grow quickly as consumer booking preferences evolve."

Highlights of the results to 30 June 2011 include global revpar growth of 6.7% (Americas 7.6%; Europe, Middle East and Africa 4%; and Asia Pacific 7%). Revenue for the six months was $850m (£520m), compared with $772 (£472m) for the same period in 2010, with operating profit at $269m (£165m), up from $219 (£134m) in 2010.

A total of 122 hotels with 24,519 rooms were added to the group and 97 hotels (15,006 rooms) removed. The current portfolio of hotels is 4,462 and 656,674 rooms, with a pipeline of 1,190 hotels (186,116 rooms). The sale of IHG's interest in four hotels has raised $140m (£86m) so far this year.

Solomons, who took over from Andrew Cosslett as chief executive on 1 July, said the company's priority was to create firmer foundations for growth by developing its brands, investing in people and strengthening its revenue delivery systems.

"I have made a number of senior appointments, including Tom Singer as chief financial officer and Tracy Robbins, our executive vice-president, human resources and global operations support, will be joining the board. Whilst we continue to monitor the uncertain economic outlook, we look forward with confidence in the currently favourable hotel trading environment of record demand and low supply growth in many markets."

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By Janet Harmer

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