IHG revenue soars as China sales nearly double
- Holiday Inn owner room revenue up 24% year-over-year in H1
- Performance-driven FTSE 100 group in Greater China
- New CEO Elie Maalouf says “travel demand is very healthy”
Intercontinental Hotels Group boasted “very healthy” demand in the first half after revenue was boosted by the reopening of the Chinese economy.
The Holiday Inn and Crowne Plaza owner’s global revenue per hotel room (RevPAR), a key industry measure of profitability, rose 24 percent year-over-year in the six months to the end of June, lifting total sales for the group to more than $2.2bn (£1.7bn).
RevPAR for the FTSE 100 group in Greater China increased 94% year-on-year, while sales in Europe, the Middle East and Africa increased 42%. Sales in the Americas increased 11 percent.
The new CEO of IHG Hotels & Resorts, Elie Maalouf, issued a statement following the results showing that “travel demand is very healthy.”
The group told investors that the disparity in growth reflects “the different levels of travel restrictions that were in place” in the first half of 2022.
IHG reported an operating profit of $584 million, up 62 percent year-over-year over the six months.
Demand moderated in the second quarter but remained strong, with global RevPAR for the three months up 17 percent year-over-year and 9.9 percent on pre-pandemic levels.
The hotel group opened 21,000 new rooms at its 108 hotels in the first half and completed 47 percent of an ongoing $750 million share buyback program.
The new CEO of IHG Hotels & Resorts, Elie Maalouf, told investors on Tuesday:
‘Our teams have delivered strong first half results, with financial performance, hotel openings and hiring all significantly above prior year comparisons. Travel demand is very healthy, with RevPAR improving year-over-year across all of our markets and exceeding 2019 pre-pandemic peaks for four consecutive quarters.”
Commenting on the results, Neil Shah, Edison Group’s director of research, said: ‘Looking ahead, IHG can begin to forecast its finances and growth in a post-pandemic world.
“With a strategic focus on expanding its portfolio of brands, including the early launch of a new mid-scale conversion brand, IHG’s prospects look bright, and it continues to innovate its brand and offerings to stay competitive in the demanding marketplace. hotelier”.
IHG Stock they were up 2 per cent to £57.72 in early trading on Tuesday.
Maalouf takes over The May announcement that then-CEO Keith Barr was stepping down after 30 years with the company.
He added: “The investments we’re making in our powerful business platform are delivering results for guests and owners, whether it’s the variety of compelling brands we now have, the tremendous impact of our new mobile app, or the strength of our IHG One Program. Rewards, where enrollments have increased 60% since its launch a year ago.