IHG profits up by third

IHG, Denham, U.K., posted strong profit growth in the third quarter of 2011, with an operating profit of US$153 million, up 33% from the US$115 million it posted in the third quarter of 2010.

The growth was driven by improved RevPAR figures, up 8% in the U.S. and 10.8% in Greater China year-on-year. Global RevPAR was up 6.4% year-on-year, while total company revenue was up 11%, while net debt decreased from US$801 million to US$644 million.

IHG said its Holiday Inn relaunch improved its U.S. performance.

“In the U.S. we continued to outperform the industry, driven by sustained results from the Holiday Inn relaunch,” said IHG CEO Richard Solomons. “We are now rolling out a multiyear program to reposition and drive stronger performance from our Crowne Plaza brand.”

IHG added a net total of 58 hotels to its roster in the third quarter, with Holiday Inn signings up 16% year-on-year.