InterContinental Hotels Group (IHG) achieved a RevPAR increase of 4% — including rate growth of 2% — across its Europe, Middle East and Asia (EMEA) markets during the first half-year interim results to June 30, 2011 compared to the same period in 2010.
EMEA RevPAR growth reached 4.8%, with rate growth of 2.1%, in the second quarter.
“In the first half we delivered a strong performance across each of our regions, driven both by increased occupancy from business and leisure travellers as well as progressive rate improvement,” said IHG chief executive Richard Solomons in a statement released on August 9.
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“Global revenue per available room grew 6.7%, with Greater China up 12.7% and the US up 8.2%, where the Holiday Inn relaunch is delivering sustained outperformance,” he added.
In the region, Saudi Arabia hotels performed highly with a RevPAR increase of 10.2%, while properties in the UAE achieved an increase of 3.4%.
While most Middle East markets showed growth, IHG attributed “significant declines” in RevPAR across its hotels in Egypt and Bahrain to “political unrest”. RevPAR achieved in EMEA grew 5.3% when excluding these two countries. The unrest in the Middle East was said to have led to a US $1 million decline — to $31 million — in managed operating profit.
Overall, EMEA market revenue increased 17% (10% at constant exchange rates (CER)) to $224 million and operating profit increased 22% (12% at CER) to $71 million. This was reportedly driven by 14.4% owned RevPAR growth and a $6 million increase in franchise royalties as a result of 5.3% RevPAR growth and a 2% increase in year-on-year room count.
Going forward, Solomans identified IHG’s priorities to develop its brands, invest in its people and strengthen its revenue delivery systems to create firmer foundations for growth.
The group signed 4547 rooms (24 hotels) in EMEA in the first half, up by more than 1200 rooms on the same period in 2010. These included seven Crowne Plaza hotels, three Hotel Indigo hotels and four Staybridge Suites hotels. Furthermore, 3461 rooms (19 hotels) were opened into the system (compared to 2938 in H1, 2010), including two Hotel Indigo hotels in the UK and nine Crowne Plaza hotels across eight different countries.
View the full report on IHG’s interim half-year results here.
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