Strong branding helped deliver a 6.2% growth in revenue per available room (revpar) for InterContinental Hotels Group (IHG), according to the company's preliminary results for the year to 31 December 2011.
Total gross revenue from IHG's properties was up 8% year-on-year to $20.2b (£12.8b), while the total number of hotels grew 2% to 4,480 (658,348 rooms). The company currently has a pipeline of 1,144 hotels (180,484 rooms), of which 40% is under construction.
In Europe, where revpar increased 4.7%, there were 612 hotels (99,885 rooms) open by the end of 2011, with a further 38 hotel signings (5,579 rooms) taking place during the year.
Richard Solomons, chief executive of IHG, said that the strength of the company's brands - which in Europe include InterContinental, Crowne Plaza, Holiday Inn, Holiday Inn Express, Staybridge Suites and Hotel Indigo - underpinned by its global systems and scale were responsible for driving results.
We are strengthening our business through developing our brand portfolio supported by targeted investment," he said. "We also ensure that our hotels with our best-in-class delivery systems are known for industry-leading guest experiences delivered by talented people and dedicated owners.
"Looking ahead, in spite of considerable uncertainty in the Eurozone, IHG is well positioned globally to benefit from positive long-term industry trends and, in particular, growing demand in emerging markets. Our 15% dividend growth reflects the confidence we have in our ability to deliver high-quality growth through market share and margin gains, due to our preferred brands, geographic diversity, robust balance sheet and scalable business model."
By Janet Harmer
E-mail your comments to Janet Harmer here.
If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.catererandhotelkeeper.com/tabletalk
Looking for a new job? Find your next job here with Catererandhotelkeeper.com jobs