IHG reports strong first-quarter results with revpar up 7%
InterContinental Hotels Group (IHG) has reported a strong performance during the first quarter of the year, with growth of 7% in global revenue per available room (revpar).
Revpar performance was strongest in China (up 11.9%) and the Americas (up 7.7%), with continued economic uncertainty in Europe producing a lower, but still increased revpar result, up 2.6%. In the UK, revpar grew by 2.2%. Overall revenue grew by 3% and operating profit by 5% year-on-year, with the net debt down from $846m (£525m) to $577m (£358m).
"The strength of our brands and systems, together with our scale and the close working relationships we have with our hotel owners, continue to underpin our success," explained chief executive Richard Solomons (pictured).
The quarter was marked by the launch of new healthy-living brand, EVEN Hotels, in the USA, and HUALUXE Hotels and Resorts in China, which Solomons said reflected the group's ability "to create distinctive and innovative brands".
The total IHG portfolio currently stands at 4,506 hotels (661,159 rooms), up 1% year on year, with a future pipeline of 1,098 hotels (174,554 rooms).
Strong branding drives global revpar growth of 6.2% for IHG >>
Andrew Cosslett to step down as IHG chief executive >>
By Janet Harmer
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