IHG recorded a strong perfromance in KSA and UAE in 2012 while warning of continued instability in the rest of the Middle East.
Intercontinental Hotel Group (IHG) recorded an overall rise in operating profits and revenue for 2012, but the Middle East market was negatively impacted by political instability.
InterContinental Hotels Group PLC chief executive Richard Solomons announced the results in a call to investors which outlined an increase in revenue of AED 7.35m (US $2m) or 0.9% to AED 800m ($218m) while operating profit increased by AED 14.7m ($4m) or 4.8% to AED 323m ($88m) across the Asia, Middle East and Africa (AMEA) region.
“RevPAR increased 4.9%, with 1.2% growth in average daily rate, with robust trading in South East Asia and Japan, partly offset by continuing uncertainty impacting some markets in the Middle East,” according to the report.
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IHG revealed that the Saudi Arabia and UAE hospitality markets bucked the Middle East trend as they continued to perform strongly in 2012 with RevPAR up 8.0% and 5.5% in the year respectively.
IHG’s hotel and room count across the AMEA in 2012 increased by four hotels (1654 rooms) to 232 hotels (62,737 rooms) while the level of openings increased from 10 hotels (2907 rooms) in 2011 to 16 hotels (4243 rooms) in 2012 including the first Holiday Inn Express hotel in Bahrain as well as the Crowne Plaza Jordan Dead Sea Resort & Spa while 12 hotels (2589 rooms) were removed from the system.
IHG also announced global 2012 operating profits of AED 2. 2 billion ($614m) which is up by 10% from 2011.
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