InterContinental posts strong first-half performance

The performance of its hotels in China and Japan has provided a strong boost to InterContinental Hotels Group's half year results.

According to IHG, Southeast Asia and Japan have seen revenue per available room grow 5.4 percent in the first half of the year, driven by increased rates and occupancy.

The trend was led by Japan, which grew 12.8 percent, thanks to increased inbound travel from China.

South East Asia was up 7.8 percent due to double digit growth in Thailand and Vietnam.

On the Chinese mainland, the revenue per available room grew by 4.8 percent in the first half of the year, led by strong performance in primary cities, particularly Shanghai where it increased by 13.7 percent.

IHG also opened eight hotels with a total of 2,000 rooms during this period, including its first two HUALUXE Hotels and Resorts in Yangjiang and Nanchang.

Kenneth Macpherson, chief executive officer of InterContinental Hotels Group in Greater China, said: "We continue to have confidence in the Chinese mainland. By the end of June, we had opened 241 hotels and have another 200 in the pipeline, with annual growth of 20 percent year-on-year."

IHG's global comparable revenue per available room was up 5.1 percent, with growth across all regions. And the total gross revenue from IHG hotels was $11.2 billion, up 1 percent year-on-year.

"We continue to make strong progress with our winning strategy in the first half of the year, strengthening our brands, loyalty program and owner proposition," said Richard Solomons, chief executive officer of InterContinental Hotels Group.

"We delivered our best first half for signings since 2008, an underlying fee revenue growth of 9 percent and underlying profit growth of 10 percent, giving us the confidence to increase the interim dividend by 10 percent," he said.

He said the preferred brands of the company demonstrated continued strong momentum, and IHG had signed the highest number of Holiday Inn rooms ever in the first half of the year, including the two largest properties for the brand.

IHG had also strengthened its leadership position in the fast growing boutique segment, he said, adding that alongside this, the company continues to make great progress delivering on its technology objectives, introducing a number of new digital initiatives that have helped drive almost 50 percent growth in mobile revenue.

Meanwhile, the completion of the sale of InterContinental Paris - Le Grand for 330 million euros ($360.57 million), and the agreement to sell the InterContinental Hong Kong for $938 million, mark the successful finalization of IHG's major owned asset disposal program.

"This has realized gross proceeds of $8 billion," said Solomans.

IHG retains a 30-year management contract on the Paris - Le Grand, which could lengthen to 60 years under the terms of the deal, and IHG will retain a 37-year management contract on the Hong Kong hotel, with three 10-year extension rights, giving an expected contract length of 67 years.

"Looking forward, based on current trading trends, we remain confident in the outlook for the rest of the year," Solomons concluded.

wangzhuoqiong@chinadaily.com.cn

(China Daily 08/08/2015 page10)