As it comes off strong end to 2014 in the region, Intercontinental Hotels Group (IHG) is warning investors about the growing uncertainty around the world, and especially in the Middle East.
The company this week revealed RevPAR grew by 5.6% in the region in the fourth quarter of 2014, leading the way in terms of performance within its Asia, Middle East & Africa unit.
Speaking during an earnings call, IHG chief executive Richard Solomons said: “Today’s macroeconomic environment outside the U.S. seems to be more uncertain and variable than it has been for a little while with an unfortunate mix of falling oil prices, strengthening U.S. dollar, heightened potential for Eurozone crisis, continued terrorist activity across the Middle East and the spectre of a parliament in the UK.”
In the year to the end of December, IHG saw its total comparable RevPAR in the AMEA region increase by 3.8% to US $109.92, with ADR up 2.7% to US $150.70. Occupancy rose by 1 percentage point to 72.9%.
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Meanwhile, global RevPAR rose by 6.1% to US $80.11, with ADR rising 2.7% to US $115.96 and occupancy up 2.2 percentage points to 69.1%.
At the end of the year, including franchised, managed, and owned & leased hotels, it had 4840 properties around the world, with a total of 710,295 rooms. Within the AMEA region, it had 253 hotels, with 67,876 rooms.
In its development pipeline, it had 1221 hotels (193,772 rooms), of which 142 (34,346 rooms) were in AMEA.
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