Holiday Inn owner reveals revenue rise despite slump in China
Elie Maalouf, chief executive of IHG hotels and resorts, said he was pleased with recent trading.
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Holiday Inn owner Intercontinental Hotel Group (IHG) has revealed a rise in revenues per room despite a significant slump in China.
Shares in the company were lower in early trading following the update.
Elie Maalouf, chief executive of IHG hotels and resorts, said he was “pleased” with recent trading, stressing that it meant the business is “on track” to meet market expectations.
IHG, which also owns the Crowne Plaza and Hotel Indigo brands, revealed that global revenues per available room rose 1.5% over the third quarter of 2024.
Bosses said growth was boosted by “healthy business demand”.
The company saw particularly strong growth in Europe and Asia, where revenue per available room was up 4.9%, with occupancy and room rates both increasing year-on-year.
Its Americas division saw 1.7% growth for the quarter, with a 1.2% increase in the US.
However, the company saw a 10.3% slump in revenues per available room in Greater China, as it was badly hit by typhoons and the timing of public holidays.
Mr Maalouf said: “We have made great progress this year to further strengthen IHG’s enterprise platform, grow our brands and deliver on our growth algorithm.
“We remain confident in our abilities to capitalise further on our scale, leading positions and the attractive, long-term demand drivers for our markets.”
IHG said it has also benefited from its continued expansion plan, opening 98 hotels over the latest quarter.
Mark Crouch, analyst at investment platform EToro, said: “Despite economic weakness in China and subdued demand in the US, it was strong summer demand in Europe that has driven the latest outperformance for IHG, reporting nearly 5% growth in the region.
“Up until recently it was the US region driving performance, highlighting the strength of IHGs diversified global footprint.
“And as concerns regarding China’s floundering economy ease, IHG remain confident in their long-term prospects in the Far East.”
Shares in the business were down 1.4% in early trading.