ICH: Profit for Year to Date Increases 19%

Third-quarter operating profit stands at 14% as RevPAR growth stands at 8.1%.

InterContinental Hotels, the world’s biggest hotel group by number of rooms, has just released its third quarter results for the period up to September 30. Total gross revenue from all hotels in IHG’s system came to $5.1 billion, up by 13% at constant currency. Global third quarter RevPAR growth stood at 8.1%, driven by occupancy growth of 4% and rate growth of 1.8%.

The group currently has 657,954 rooms in the system, in 4,507 hotels. During the period, 7,149 rooms in 51 hotels were added and 5,856 rooms in 47 hotels removed to make up the total number, an overall increase of 3%. In the pipeline, 13,690 rooms (88 hotels) were signed up for, taking the pipeline to almost 200,000 rooms.

Third-quarter operating profit increased by 14%, raising year-to-date operating profit by 19%. This excludes the impact of performance-based long-term incentive costs. Net debt reduced by $358 million from 30 September 2009 to $801 million. In the group’s Europe, Middle East and Africa region, RevPAR increased 9.7% in the third quarter, with rates improving by 3.1%. Of the major markets in the region, performance was strongest in Germany where RevPAR grew by 22.2%. In the Asia Pacific region, RevPAR increased 12% during the quarter, with rates up 4.1%.

Here, Greater China was the strongest performing region with RevPAR growth of 24.4%, boosted by the World Expo in Shanghai where RevPAR grew 88.6%. And in the Americas, RevPAR increased 6.7% in the third quarter, driven mainly by occupancy with rates improving marginally by 0.8%. “The quarter saw a return to rate growth for the first time since early 2009, a clear sign that the recovery is gathering pace,” Andrew Cosslett, ICH’s chief executive, commented.

Global RevPAR was up 8.1% with Greater China RevPAR increasing 24.4% and Europe, Middle East and Africa RevPAR grew at its fastest pace for two years. “The sharpest improvement was seen in our Holiday Inn brand family with guests staying more and paying more at the re-launched hotels.”

BBC

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