20th Oct 2023 07:35
(Alliance News) - InterContinental Hotels Group PLC on Friday said demand was "very healthy" during its latest quarter with consistent revenue increases across all three operational regions.
The Windsor, Berkshire-based operator of the InterContinental, Holiday Inn and Crowne Plaza hotel chains said group revenue per occupied room increased 11% during the third quarter of 2023 from the prior year, and 13% compared with 2019.
IHG said revenue in the Europe, Middle East & Africa region was up 16% from 2022 levels and 18% from 2019, while Americas revenue was up 4.1% from last year but 14% from 2019.
In the Greater China region, revenue was up 43% from 2022 and 9.3% from 219. IHG said the region also delivered its "highest quarterly signings performance since 2021" with 6,900 rooms added to the pipeline across 37 hotels as "development activity continues to improve following the extended period last year of Covid-related restrictions".
"Travel demand remained very healthy during the quarter," Chief Executive Officer Elie Maalouf commented. He noted that group revenue growth represented "the fifth quarter of sequential improvement exceeding pre-pandemic highs" amid "the near-complete return to pre‑Covid levels of demand."
IHG also said it is on track to have returned USD1.0 billion to shareholders by the end of 2023 through both dividends and buybacks. Its USD750 million buyback programme, announced in February, is still ongoing.
Maalouf said IHG expects to end 2023 "with very strong financial performance", adding: "Looking further ahead, whilst there are macro-economic uncertainties and some short-term financing challenges holding back new hotel development, I am excited about the future for IHG and the attractive, long-term demand drivers for our markets.
"As such, we're confident in the strengths of IHG's business model, scale and in our strategic priorities to capture sustainable, profitable growth."
By Emma Curzon, Alliance News reporter
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