Highlights
• Global Q1 RevPAR growth of 3.1%, driven by 2.0% average daily rate growth.
• System size up 1.9% year on year to 674k rooms as at 31 March.
• 14k rooms signed in Q1, taking the pipeline to 176k rooms at the quarter end.
• Loyalty scheme renamed as IHG Rewards Club, which will offer enhanced benefits including free internet for all members, an industry first.
• InterContinental London Park Lane disposal completed for $469m gross cash proceeds, with management contract secured for up to 60 years.
Richard Solomons, Chief Executive of InterContinental Hotels Group PLC, said:
“We have had an encouraging start to our 10th anniversary year, with solid trading performance in the first quarter driven predominantly by growth in rate. Our preferred brands and global scale helped deliver good pipeline growth in the quarter, with over 100 hotels signed, led by our Americas and Greater China regions.
“The disposal of InterContinental London Park Lane, which completed on 1 May, highlights the value of our asset portfolio and the attractiveness of InterContinental as one of the world’s leading luxury hotel brands. It is also another step in our long standing commitment to reduce the capital intensity of IHG.
“Our high quality pipeline, broad geographic spread and fee based model give us confidence for the year ahead, despite the ongoing challenging economic conditions in several of our markets.”
RevPAR performance
Group
Q1 global RevPAR growth of 3.1%, with rate up 2.0% and occupancy up 0.6%pts. The shift in timing of Easter from April into March adversely impacted RevPAR in the quarter. The corresponding boost can be seen in April when RevPAR was up 6.2% for the Group as a whole compared to just 0.6% in March.
Europe
Q1 European RevPAR was down 2.2%, in part due to the impact of the Easter shift. In addition to this, increased supply in London during 2012 drove UK RevPAR down 2.4%, and tough prior year comparatives due to the biennial trade fair calendar resulted in RevPAR down 1.9% in Germany. Good RevPAR growth of 2.7% in France was driven by strength in Paris, partly offset by some weakness in the provinces.
April RevPAR
Group RevPAR growth of 6.2% in April, with Americas up 7.9% (including US up 8.1%) and Europe up 3.3%, both showing some positive impact from the shift in timing of Easter, and AMEA up 7.1%. A Greater China RevPAR decline of (2.1)% reflects a continuation of the factors experienced in Q1 plus the localised effects from bird flu concerns and the Sichuan earthquake
High quality system and pipeline
Group system size
Net rooms up 1.9% year on year to 674k rooms (4,608 hotels).
Openings of 5k rooms (34 hotels) included 29 Holiday Inn brand family hotels, demonstrating continued high levels of owner interest following the brand relaunch programme.
6k rooms (28 hotels) were removed including 2.5k (8 hotels) in the Americas with one owner, as previously announced.
Group pipeline
High quality pipeline of 176k rooms (1,089 hotels), up 1% year on year. Over 40% of rooms are under construction.
Signings of 14k rooms (101 hotels) included 4k rooms (32 hotels) on US Army bases, which are due to open into the system in Q2. Excluding these rooms, signings were still 14% higher than in Q1 2012.
In Greater China signings were particularly strong at 4k rooms (16 hotels), up more than 50% on Q1 2012, reflecting the strength of our brands and the confidence that our owners have in the prospects of the industry in this market.