IHG Reports Hotel Revenue Up 9 Percent for First Half of 2011
Hotel & Resort August 09, 2011
Announcing its interim results for the first half of 2011, InterContinental Hotels Group reported total gross revenue from hotels in the company’s system of $9.6 billion, up 9 percent, as well as global RevPAR growth of 6.7 percent (7.6 percent excluding Egypt, Bahrain and Japan), and for the Americas, 7.6 percent (including 8.2 percent in the U.S.); EMEA, 4 percent; and Asia Pacific, 7 percent.
Second-quarter global RevPAR was up 6.5 percent, 7.4 percent excluding Egypt, Bahrain and Japan. Global rate growth was 2.1 percent in the first half, with 2.4 percent in the second quarter. A total of 24,519 rooms (122 hotels) were added, including 6,986 rooms (two hotels) from the first InterContinental Alliance Resorts in Las Vegas, and 15,006 rooms (97 hotels) removed. The total system size was 656,674 rooms (4,462 hotels) with a pipeline of 186,116 rooms (1,190 hotels), an increase of 26 percent in Greater China. Signings of 21,139 rooms (148 hotels) were ahead of the first half of 2010, although 2011 net system growth is still expected to be modest, with annual medium-term growth from 2012 of 3 to 5 percent.
Richard Solomons, chief executive of InterContinental Hotels Group PLC, said, “In the first half, we delivered a strong performance across each of our regions, driven both by increased occupancy from business and leisure travelers as well as progressive rate improvement. Global revenue per available room (RevPAR) grew 6.7 percent with Greater China up 12.7 percent and the U.S. up 8.2 percent, where the Holiday Inn relaunch is delivering sustained outperformance. We continue to support our owners, driving guests to our hotels through the most efficient channels. Our industry-leading developments in mobile booking sites and apps are now generating over $10 million of revenue a month and we expect this to grow quickly as consumer booking preferences evolve.
“We have realized over $140 million in the year to date from the sale of our interests in four hotels and have committed to invest over $70 million of capital behind our brands, including the roll out of Holiday Inn Express in India and a world-class site for Hotel Indigo in New York. Our priorities are to develop our brands, invest in our people and strengthen our revenue delivery systems, thereby creating firmer foundations for growth. I have made a number of senior appointments including Tom Singer as CFO and Tracy Robbins our EVP Human Resources and Global Operations Support will be joining the board. Whilst we continue to monitor the uncertain economic outlook, we look forward with confidence in the currently favorable hotel trading environment of record demand and low supply growth in many markets,” Solomons said.
July global RevPAR was up 5.6 percent, including rate up 2.7 percent. RevPAR was up 6.3 percent excluding Egypt, Bahrain and Japan. By region, RevPAR in July grew in the Americas by 6.6 percent (6.7 percent in the U.S.); EMEA, 3 percent; and Asia Pacific, 5.5 percent. For more information, visit www.ihg.com.
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