News
08
www.asianhospitality.com
September 2024 | Issue 229
nterContinental Hotels Group
reported a 3 percent increase in global
RevPAR in the first half of 2024, with
3.2 percent growth in the second quarter,
driven by a recovery in U.S. markets. ADR
rose 2 percent, and occupancy increased
by 0.6 percentage points in the first half,
leading to a 6 percent rise in total gross
revenue, reaching $16.1 billion.
The company's U.S. RevPAR was
positive starting in April, increasing by 2.5
percent in the second quarter, IHG said in
a statement. In May, IHG reported a 0.3
percent year-over-year decline in RevPAR
for the Americas in the first quarter, due
to a 1.9 percent drop in U.S. RevPAR.
“We are making great progress on the
delivery of our strategic priorities and
the clear framework to drive future value
creation that we set out in February,”
said Elie Maalouf, IHG’s CEO. “RevPAR
growth accelerated in the latest quarter,
reflecting a strong U.S rebound in the
second quarter and the breadth of our
global footprint, and development activity
continues to increase. Together with
system growth, notable margin expansion
and the benefit of returning surplus
capital through buybacks, adjusted EPS
growth was up 12 percent.”
Global growth
The Berkshire, England-based IHG
expanded its global footprint with a 4.9
percent increase in gross system growth
year-over-year and a 3.2 percent rise in
net system growth. The company opened
18,000 rooms across 126 hotels in the first
half of the year, bringing its global estate
to 955,000 rooms in 6,430 hotels. During
the same period, IHG signed 384 hotels
comprising 57,100 rooms, representing
a 67 percent increase from the previous
year, or a 15 percent rise when adjusting
for acquisitions like Iberostar and
NOVUM.
“We celebrated 126 hotel openings
in the half and the signing of a record-
breaking 384 properties, equivalent to
more than two a day,” said Maalouf.
“These included the first six openings and
118 signings from the NOVUM Hospitality
agreement, which doubles our presence
in the important and attractive German
market. After growth of more than 7
percent in the first quarter, a very busy
second quarter saw 23 percent more
signings year on year or a more than
doubling when including NOVUM, and
this keeps us on track for net system size
growth expectations.”
Robust financials
IHG's revenue in the first half of the year
rose 4.3 percent to $2.32 billion from
$2.23 billion a year earlier. However,
pretax profit fell 17 percent to $472 million
from $567 million, the statement said.
The company’s operating profit from
reportable segments rose by 12 percent
to $535 million, though this includes a $10
million adverse currency impact.
The reported operating profit of $525
million reflects a planned reduction in
the prior System Fund surplus and no
exceptional items, compared to an $87
million profit in 2023, IHG said. Adjusted
EPS increased by 12 percent to 203.9¢,
despite higher adjusted interest expenses
and a 5.6 percent reduction in the weighted
average number of ordinary shares.
IHG revenue rises amid
U.S. market recovery
The company's U.S. RevPAR turned positive from April, increasing 2.5 percent in Q2
InterContinental Hotels Group, parent company of Holiday Inn brands, reported a 3 percent increase
in global RevPAR in the first half of 2024, with 3.2 percent growth in the second quarter, driven by a
recovery in U.S. markets.