IHG reports 22% increase in interim operating profits

InterContinental Hotels Group (IHG) - the world's largest hotel company by number of rooms - has reported a 22% increase in half-year operating profits, up from $179m (£112) to $219m (£138m).

Occupancy helped to drive up the revenue per available room (revpar) across the group's 4,500 hotels by 3.9%. The most recent trading figures for July showed a growth of 8.1% in global revpar.

While revpar growth of just 1.2% was reported for IHG's 255 UK hotels, the InterContinental Park Lane in London achieved a healthy 15% revpar growth.

Asia is leading the recovery, with China reporting revpar up 29.4% in the first half of the year.

However, despite improved trading, Andrew Cosslett, chief executive of IHG, warned that the economic environment remains uncertain.

"During the downturn we worked closely with our owners to reduce costs, drive revenues and build the strength of our system and brands," he said. "In the first half we signed 130 hotels and opened 148, despite the tough financing environment."

IHG, which owns and manages more than 4,500 hotels and 656,000 bedrooms in 100 countries, announced that it has completed the relaunch of nearly 2,600 Holiday Inn hotels worldwide out of a total 3,400.

It is also going ahead with plans to grow its boutique brand Hotel Indigo from 36 to 57.

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By Janet Harmer

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