InterContinental Hotels Group (IHG) has so far this year enjoyed strong trading in the USA, with limited and mixed growth in Europe and Asia Pacific.
IHG’s third-quarter results to 30 September showed operating profit for the group as a whole up 22% to £56m.
In Europe, the Middle East and Africa, revenue per available room (revpar) increased by 5.2% overall, although there were severe regional differences in performance.
London’s terrorist attacks impacted on occupancy within the leisure sector, but the market appears to be gradually recovering already. In the Middle East, rate growth drove up revpar by 18.6%.
In Asia Pacific revpar increased by only 0.6% for the quarter. Meanwhile, mainland China saw an increase of 10.2%, also driven by rate increases.
Revpar in the Americas increased by 11%, with all brands performing strongly. The trading impact of the hurricanes was said to be neutral.
IHG’s chief executive Andy Cosslett said: “We are seeing good progress being made against IHG’s strategy, in particularly encouraging growth in our development pipeline.”
IHG is also on course to reach it’s target of 50-60,000 room additions by the end of 2008 with 16,100 rooms signed in the year to date and 95,000 now in the pipeline.
By Emily Manson
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