InterContinental Hotels Group delivered its strong first half for signings since 2008, the group’s Q2 earnings report revealed.
The hotel operator also reported a 10% increase in underlying profit.
IHG’s global H1 RevPAR was up 5.1% globally, with Q2 YOY growth of 4.4%.
In the Middle East, performance was mixed with 9.9% growth in Saudi Arabia, with a slower performance in the UAE.
The group added 28,000 rooms globally, increasing its total inventory to 724,000 rooms, representing a YOY net-system growth of 4.5%.
IHG also signed 41,000 new rooms globally in the first half of the year – the most since 2008, bringing its pipeline to more than 100,000 rooms under construction.
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The group signed the highest number of Holiday Inn rooms in the company’s history during the first half, including the two largest properties for the brand.
The group’s extended stay brands also saw the highest number of openings and signings since 2010, with more than Staybridge Suites hotels in the pipelines.
Furthermore, the group has also opened five new Kimpton hotels since the acquisition in what is expected to be the best year for additions in the brand’s history.
The inventory and pipeline numbers mean IHG now has a 5% share of global industry supply.
Digitally, IHG reported 50% growth in mobile app downloads, and 48% growth in mobile revenue to over $1 billion.
Commenting on the group’s performance, IHG chief executive Richard Solomon said: “We continued to make strong progress against our winning strategy in the first half, strengthening our brands, loyalty programme and owner proposition. We delivered our best first half for signings since 2008, underlying fee revenue growth of 9%, and underlying profit growth of 10%, giving us the confidence to increase the interim dividend by 10%.
“The completion of the sale of InterContinental Paris – Le Grand for €330mn (US $362.6mn), and agreement to sell InterContinental Hong Kong for $938mn, marks the successful finalisation of our major owned asset disposal programme, which has realised gross proceeds of $8bn.
"Looking forward, based on current trading trends, we remain confident in the outlook for the rest of the year.”
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