IHG posts Q2 profit on 7.4% RevPAR jump

WINDSOR, ENGLAND InterContinental Hotels Group PLC has posted a second-quarter net profit of US$87 million from a loss of US$56 million a year earlier, as revenue grew 9.3% to US$410 million. Global RevPAR rose 7.4% in the quarter, including a 29.4% rise in China.

“As anticipated, occupancy drove RevPAR increases, with business travelers returning in greater numbers,” says CEO Andrew Cosslett. “Rates are now stabilizing across the world, with most markets seeing rate growth towards the end of the first half. The economic environment does remain uncertain, however, with short booking windows and limited visibility.”

IHG added 19,003 guestrooms across 148 hotels during the quarter. Accounting for properties that left the system, that is a net increase of 9,982 guestrooms and 65 hotels. IHG’s global development pipeline stands at 197,431 guestrooms and 1,302 hotels, about 10% of which was added during the quarter.

The US$1 billion relaunch of the Holiday Inn brand remains on track, with 2,585 hotels—76% of the brand portfolio—now operating under the new Holiday Inn standards. Relaunched hotels are performing at the top end of the expected range, IHG says.

Having maintained its dividend through the recession and balancing the improvement in trading with the continued economic uncertainty, IHG’s board announces an increase in the dividend of 5%.