Hotel Brands

IHG RevPAR slips in Q3 results

Hotel brand IHG has reported a 0.8% decrease in comparable RevPAR, impacted by tougher trading conditions in the US and China, and “ongoing” unrest in Hong Kong.

The group said that despite the “weaker” RevPAR environment, and the challenges some of it markets are currently experiencing, it remains “confident” in its financial outcome for the rest of the year.

Some 13,000 rooms opened during the period, taking the total number of rooms to 42,000 in the year-to-date. Additionally, the brand reported 4.7% year-on-year net system size growth to 865,000 rooms, and said it is “on track” to exceed 5% for full year 2019.

CEO Keith Barr said: “Our continued strategic focus on driving net rooms growth enabled us to deliver a 4.7% increase in net system size despite a strong comparable. 

“This will accelerate in the coming quarter and we are on track to deliver industry leading net system growth over the medium term. Third quarter Group RevPAR was down 0.8%, impacted by tougher trading conditions in the US and China, and ongoing unrest in the Hong Kong SAR.”

He added: “We have made further progress executing against our strategic initiatives, with the first franchise applications already received for Atwell Suites, our new upper midscale brand which was launched for franchise sales at the end of the quarter.”

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