Buoyant figures show IHG fighting off recession
InterContinental Hotels Group has released interim figures that reflect a strong performance in the first half of the year despite the crunch.
The group says it has achieved its three year growth target six months ahead of schedule, with 60,490 rooms added since June 2005, and is currently adding two hotels a day to its portfolio. It now has 242,349 rooms in the pipeline which makes up 41% of it existing size.
IHG has also seen global constant currency RevPAR up by 4% and July’s global constant currency RevPAR growth of 3.4% although that figures drops to 1.5% for the US only. Total gross revenue from all hotels went up 8% in constant currency to $9.6 bn.
Said chief executive Andrew Cosslett: “IHG had a good first half, seeing growth in both revenue per available room and in the number of hotels we operate round the world. In the half we hit the target we set the business in 2005 of adding more than 60,000 rooms on a net basis by the end of 2008. This is a big milestone and we have passed it six months early.â€
“Over the last three years we have worked hard to strengthen the foundations of the business through investment in our brands, technology, reservation systems, loyalty programme and our people. This investment not only drives our room growth, but helps us outperform during times of economic uncertainty. Generally RevPAR growth slowed through the second quarter, and market conditions have become more challenging, particularly in the US. However, the long term trends for the travel industry remain positive and our broad portfolio of brands and fee based business model positions us well to take full advantage of this.â€
By Dinah Hatch
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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