5th Nov 2013 08:50
LONDON (Alliance News) - InterContinental Hotels Group PLC Tuesday said it delivered another strong performance in the third quarter of the year, as revenue growth from its rooms were driven by the Americas region and strong growth in the Asia region and the Middle East and Africa region.
The hotel chain said it saw revenue per available room growth in all four of its regions, including the weakest, Europe.
IHG reported global revenue per available room growth of 3.3% in the third quarter, and 3.6% in the first nine months of the year, led by a strong performance in Asia, the Middle East and Africa, which saw growth of 5.4% in the third quarter alone, driven by a 5% increase in the average daily rate.
IHG said Europe remains its weakest market, but still saw RevPAR growth of 1.3% in the third quarter, despite a tough comparative year from the London Olympic Games in the UK, and a strong trade fair schedule in tourist-hotspot cities in Germany.
The group reported 0.7% RevPAR growth in Greater China in the third quarter, with 0.4% growth in the first nine months of the year, as flooding and landslips in parts of China hurt demand.
IHG said its net room numbers were up 1% year-on-year, as it opened 8,000 rooms in the quarter, driven by the Americas and Greater China regions, taking its system size to 679,000 rooms as at September 30.
It also said it signed contracts for 16,000 new rooms in the third quarter, including a third InterContinental hotel in London and a Holiday Inn hotel in Saudi Arabia. The new signings, represent a 18% increase year-on-year, taking the pipeline to 180,000 room at the quarter end, with over 40% currently under construction.
The group said its financial position remains robust.
Shares in IHG were trading down 0.5% Tuesday morning at 1,785.98 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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