IHG sees UK revpar improve
InterContinental Hotels Group (IHG) has heralded further signs of an economic recovery, reporting a 6.7% rise in revpar in its UK operations for the third quarter of 2010.
IHG said the revpar growth was driven by a rate increase of 3.6% and marked a "strong improvement" on the second quarter, when revpar increased 3.4%. Overall, revpar in Europe, the Middle East and Asia was up 9.7% in the third quarter. Growth in Germany was strongest at 22.2%. Globally the firm saw constant currency revpar growth of 8.1%.
Meanwhile, the company saw worldwide revenue for the period rise 5% to $421m (£261m), up from $401m (£248.6m). But operating profit fell 7% to $115m (£71m), down from $124m (£77m).
IHG also indicated that the relaunch of its Holiday Inn brand was almost complete, with 82% of its total estate operating under the new standards - a total of 2,815 hotels. By the end of the programme, around 750 new Holiday Inn hotels will have opened, while 635 underperforming hotels will have been removed.
The company said the Holiday Inn relaunch was having a positive effect within the USA, with third-quarter revpar for hotels relaunched for more than one year up 8%, six percentage points higher than non-relaunched hotels.
Commenting on the results, Andrew Cosslett, chief executive of IHG, said: "The quarter saw a return to rate growth for the first time since early 2009, a clear sign that the recovery is gathering pace. Global revpar was up 8.1%, with Greater China revpar increasing 24.4% and Europe, the Middle East and Africa revpar growing at its fastest pace for two years."
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By Neil Gerrard
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