IHG reports 'strong trading' in half-year results
InterContinental Hotels Group (IHG) reported "strong trading" as a result of "buoyant leisure demand" in its half-year results to 30 June 2023.
Global revpar (revenue per available room) increased by 24% year-on-year, "exceeding 2019 pre-pandemic peaks for four consecutive quarters", while the average daily rate was up by 7% compared to 2022.
Revpar in EMEAA (Europe, the Middle East, Africa and Asia) had increased by 42% year on year as pandemic travel restrictions loosened.
The global hotel estate is now at 6,227 hotels, following the opening of an additional 108 hotels in H1, 40% more than H1 2022.
IHG also signed on 239 hotels over the past half-year. More than a quarter of all signings were across its luxury and lifestyle brands as the group plans to "accelerate growth in this higher fee income segment".
Meanwhile, the 12-month adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) increased by 23% to £780m ($996m) compared to 2022.
Elie Maalouf, chief executive officer of IHG Hotels & Resorts, said: "Our teams have delivered strong results in the first half, with financial performance, hotel openings and signings all significantly above prior year comparisons. Travel demand is very healthy, with RevPAR improving year-on-year across all our markets and exceeding 2019 pre-pandemic peaks for four consecutive quarters.
"In the Americas and EMEAA regions, leisure demand has remained buoyant and business and group travel continued to strengthen, while in Greater China, demand has rebounded rapidly."
He added: "As we continue to grow our brand portfolio, we're excited to announce we will soon launch a new brand targeted at midscale conversion opportunities. We're proud of our industry-leading position in upper midscale with Holiday Inn and Holiday Inn Express. Our aim is that this new conversion brand will become the first choice for guests and owners in the midscale segment."
