IHG room revenues up as US, China demand offsets Iran war hit.
InterContinental Hotels on Tuesday said it was on track to meet full-year earnings estimates as it reported a 10% jump in profits driven by better-than-expected demand globally.
Source: Sharecast
The Holiday Inn owner said revenue per available room – a key industry metric - grew 4.1% in the six months to June 30 as trading in the US accelerated in the second quarter due to the football World Cup, although it did slow in the second quarter to 3.5% from 4.4% in the first three months of the year.
Growth in Greater China continued and a good performance elsewhere in Europe and Asia offset challenges in the Middle East as the US-Israeli war on Iran and Lebanon dragged on.
Operating profit came in at $665m, while total revenue grew 5.6% to $2.67bn.
RevPAR in the Americas surged to 5.4% in the second quarter from 3.6% in the first quarter, supported by the World Cup, a "stronger US economy, as well as comparatives that became easier in Q2", IHG said. First-half RevPAR
Overall Americas RevPAR rose 4.8% in the first half.
In the Europe, Middle East, Africa & Australasia segment, RevPAR grew 3.0% in the first half, but growth fell away sharply to 0.6% in the second quarter from 5.6% in the first three months of the year, due to the Iran war.
The Middle East region, which accounts for 19% of EMEAA's system and 5% of the firm globally, saw a 2% RevPAR fall in the first quarter and 19% in the second.
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