6th May 2016 06:53
LONDON (Alliance News) - InterContinental Hotels Group PLC on Friday said revenue per available room fell in the first quarter of 2016, although it would have grown on a constant currency basis.
The hotel company said group RevPAR slipped by 0.7% in the first quarter year-on-year due to the strengthening of the dollar. On a constant currency basis, however, this grew by 1.5%, driven by a 1.0% increase in room rates and 0.3 percentage point rise in room occupancy.
Geographically, RevPAR at actual exchange rates grew by 0.7% in the Americas, but declined by 3.1% in Europe, by 4.6% in Africa, the Middle East and Asia, and by 1.6% in Greater China.
At constant currencies, RevPAR grew by 1.9% in the Americas, by 1.4% in Europe, by 2.2% in Greater China, but still declined by 1.1% in Africa, the Middle East and Asia.
IHG added that the earlier Easter this year hurt its results, particularly in the Americas and Europe, but that it expects this effect to reverse in the second quarter.
"Looking ahead, despite economic and political uncertainty in some markets, current trading trends and the momentum behind our brands give us confidence for the rest of the year," IHG Chief Executive Richard Solomons said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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