InterContinental Hotels Group PLC (IHG) has reported solid results for the last three months despite the continuing, challenging global economic environment. Richard Solomons, Chief Executive said:
“We have delivered a solid set of results in the quarter with RevPAR growth across all regions and outperformance in key markets such as the US and Greater China. Our preferred brands have driven good underlying revenue growth despite a number of industry wide issues such as the timing of holidays, slowing economic growth in certain markets and the political leadership change in China.
“We continue to build a strong foundation for future growth, with a good pace of signings and openings, and we are on track to meet our full year net system growth guidance. Our new brands are gaining traction, with the first signing for EVEN Hotels in New York City in October and 12 signings for HUALUXE Hotels & Resorts year to date.
“The global economic environment remains challenging. However, our forward bookings remain encouraging and we are confident that IHG is well positioned to continue to outperform based on the considerable strengths of the business and our focused strategy for high quality growth.”
Highlights
• Third quarter global RevPAR growth of 3.9%, with 5.6% global RevPAR growth year to date.
Americas third quarter RevPAR up 4.6% (US 4.6%); Europe 2.0%; AMEA 2.9%; Greater China 4.0%.
• Average daily rate growth of 3.4% in the third quarter, the 9th successive quarter of growth.
• Total system size of 672,252 rooms (4,573 hotels), up 2.1% year to date (0.9% year on year).
• 8,603 rooms (56 hotels) added and 3,224 rooms (25 hotels) removed in the quarter, with signings of 13,304 (85 hotels). Signings and openings broadly in line with last year after excluding 4,796 rooms on US Army bases (included in both figures for Q3 2011).
• New brands gaining traction with the first EVEN Hotel signed in October in Manhattan under a management contract. There are 12 HUALUXE Hotels & Resorts in the pipeline, with 8 signed in the quarter.
• Pipeline of 165,945 rooms (1,042 hotels), c.40% under construction. 13% active global pipeline share.
• Greater China system size and pipeline up 11% and 7% respectively year on year. Market leading position with 60,115 rooms (181 hotels) open and 51,454 rooms (160 hotels) in the pipeline (31% of group pipeline).
Europe – strong profit growth driven by owned hotels
RevPAR increased 2.0%, with 2.4% rate growth despite continued uncertainty in macro economic conditions across Europe. 3.9% RevPAR growth in the UK reflected stronger trading during the Olympic and Paralympic games with weaker performance in the periods before and after as expected. 8.8% RevPAR growth in Germany reflects good rate growth due to the favourable trade fair calendar and 2.0% RevPAR growth in France was driven by continued strength in Paris, offset by declines in the provinces.