Economy

IHG reports flat performance in Q1 due to increasing supply in London

InterContinental Hotels Group (IHG) has announced revenue per available room (RevPAR) was flat in the first quarter (Q1) of the year.

The company said a solid performance by its regional hotels had been offset by “softer industry-wide trading” in London, which it said was predominantly due to supply increases.

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Overall, the company – owner of brands including Crowne Plaza, Holiday Inn and Staybridge suites – reported a global increase in RevPAR of 1.5%. Average room rate was up 1% while global occupancy grew 0.3%.

The group opened 5,000 rooms during the period increasing its global room count to 724,000. It has 15,000 further rooms signed and a pipeline of 220,000 rooms, of which 45% are currently under construction.

Richard Solomons, chief executive, said: “We have made a good start to the year, driving RevPAR up 1.5% against the background of weak oil markets and the earlier timing of Easter, which affected several of our markets.

“We continued our focus on building and leveraging scale where it matters, signing rooms into our pipeline at the fastest rate since 2008.”

Looking forward, Solomons said despite economic and political uncertainty in some markets, current trading trends and the “momentum” behind IHG’S brands is giving the company “confidence for the rest of the year”.

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