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InterContinental Hotel Group (IHG) has reported a “strong” first half of the year as its RevPAR increased 24% YOY to $2.2bn (£1.75bn).
It attributed the boost in revenue to “buoyant” leisure demand across America and EMEA. RevPAR increased 42% in EMEA as travel restrictions loosened.
Its 12 month adjusted EBITDA also increased 23% to $996m (£780m) and its operating profit was up 62% to $584m (£459.13m).
Additionally, its average daily rate increased 7% and occupancy increased 9% compared with 2022.
The group’s global estate is now at 925k rooms (6,227 hotels) as it opened 21.0k rooms (108 hotels) in H1, which was 40% more than H1 2022.
It also signed 239 hotels in H1, 11% more than H1 2022 out of which more than a quarter of all signings were across its six luxury and lifestyle brands.
Elie Maalouf, chief executive officer, IHG Hotels and Resorts, said: “Our teams have delivered strong results in the first half, with financial performance, hotel openings and signings all significantly above prior year comparisons. Travel demand is very healthy, with RevPAR improving year-on-year across all our markets and exceeding 2019 pre-pandemic peaks for four consecutive quarters.
“In the Americas and EMEA regions, leisure demand has remained buoyant and business and group travel continued to strengthen, while in Greater China, demand has rebounded rapidly. The investments we’re making in our powerful enterprise platform are delivering results for guests and owners – be it the breadth of attractive brands we now have in place, the excellent impact of our new mobile app, or the strength of our IHG One Rewards programme, which has seen enrolments jump by +60% since launch a year ago.”
He added: “As we continue to grow our brand portfolio, we’re excited to announce we will soon launch a new brand targeted at midscale conversion opportunities. We’re proud of our industry-leading position in the upper midscale with Holiday Inn and Holiday Inn Express. Our aim is that this new conversion brand will become the first choice for guests and owners in the midscale segment, accelerating our growth in a space that is already worth $14bn in the US market alone.
“Conversions represent a major growth opportunity for us, generating around 40% of first half openings and signings globally, and we see an increasing desire from owners to quickly realise the benefits of IHG’s scale and strong enterprise. We’re delighted that more than 100 hotels have already expressed definitive interest in the new brand.”
