InterContinental Hotels announces ‘solid’ third quarter results

The InterContinental Hotels Group (IHG) has reported what it describes as "solid" global results for the third quarter of the year.

In the three months to the end of September, the group saw revenue increase to $473 million (£295 million), up from $467 million for the same period last year, while operating profit increased from $153 million to $167 million.

"We have delivered a solid set of results in the quarter with RevPAR (revenue per available room) growth across all regions and outperformance in key markets such as the US and Greater China," said Richard Solomons, chief executive of IHG.

In the Americas, IHG saw RevPAR increase by 4.6 per cent during the quarter – the same as for the US on its own – while in the AMEA region it reported a 2.9 per cent rise and in Greater China saw a four per cent increase.

In the UK, the group saw RevPAR growth of 3.9 per cent, outpacing the rest of Europe at two per cent, driven by London's hosting of the Olympic and Paralympic Games, said IHG.

Across Europe, the company opened 11 new hotels, adding a total of 1,171 rooms to its portfolio, including two Holiday Inn hotels in London and two Holiday Inn Express hotels in the UK regions.

And the company could be set to offer further hotel recruitment opportunities to jobseekers, with a another 165,945 new rooms in 1,042 hotels in the pipeline globally, around 40 per cent of which are already under construction.

"We continue to build a strong foundation for future growth, with a good pace of signings and openings, and we are on track to meet our full year net system growth guidance," said Mr Solomons.

He acknowledged that the global economy "remains challenging" but added: "Our forward bookings remain encouraging and we are confident that IHG is well positioned to continue to outperform based on the considerable strengths of the business and our focused strategy for high quality growth."

Berkeley Scott is a specialist recruitment agency providing hotel management solutions