First-half profit rises on back of higher demand in emerging markets
InterContinental Hotels Group has posted a rise in first-half profits mainly due to higher revenues boosted by demand from emerging markets. However, it cautioned that the economic outlook remains uncertain. The world’s biggest hotel operator by number of rooms, which largely operates a franchise model in partnership with hotel owners rather than owning them directly, reported that operating profit in the six months ending June 30 rose by 23% year-on-year to $269 million. Revenue increased 10% to $850 million and RevPAR grew 6.7%. IHG plans to more than double the size of its operations in key emerging markets such as China, India and the Middle East in the coming years.
“Whilst we continue to monitor the uncertain economic outlook,” CEO Richard Solomons said, “we look forward with confidence in the currently favourable hotel trading environment of record demand and low supply growth in many markets.”
[pictured: View from Lalit Goa Resort; courtesy IHG]