IHG reports Positive First Half Results

Travel News Asia Wednesday, 15 August 2007

InterContinental Hotels Group's first half 2007 revenue was up 12% from 377m to 422m, up 20% at constant currency, whilst continuing operating profit was up 5% from 106m to 111m, up 17% at constant currency. Global constant currency RevPAR grew 7% and total gross revenue from all hotels in IHGs system was up 12% to US$8.3bn.

IHG saw the strongest RevPAR (revenue per available room) growth in the Asia Pacific region up 9.1%. InterContinental, Crowne Plaza and Holiday Inn all performed strongly, with RevPAR up 11.1%, 7.9% and 8.4% respectively. Greater China RevPAR increased 6.2%, driven by rate increases. Operating profit from continuing operations was US$27m. Owned and leased hotel operating profit increased 7% to US$15m, after the impact of refurbishment activity at the InterContinental Hong Kong. Managed hotels profit was stable at US$19m.

Commenting on the results and trading, Andrew Cosslett, Chief Executive of InterContinental Hotels Group PLC said, The company has had a good first half. Signings continue to run at record levels with almost 55,000 rooms signed into our development pipeline. Strong demand with relatively low levels of new supply is driving up room rates and our brands continue to outperform the market in most of our major regions and geographies. Our outlook for the year is positive.

In the first half, a record 54,246 rooms were signed and 7,430 net rooms added globally, with a closing pipeline of 187,487 rooms (up 19%), giving IHG further confidence that it will exceed its target of 50,000-60,000 net organic room additions by the end of 2008 from the 30 June 2005 starting position.

IHG development activity in the Asia Pacific region is strong. During the first half, 12,702 rooms were signed and 2,805 rooms were opened in the region. In Greater China, 32 hotels, 10,370 rooms, were signed in the first half, consisting of two InterContinentals, 15 Crowne Plazas, six Holiday Inns and nine Holiday Inn Expresses.

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