InterContinental Hotel Group (IHG) posted a positive set of results for the first half of the year, driven by its hotels in Asia.
The hotel company’s operating profits jumped 20% to US$338 million in January-June 2013, with revenues rising 7% to US$936m. Group-wide revenue per available room (revPAR) increased 3.7% in the first half, driven by a 1.9% rise in average daily rates (ADR) and a 1.1% increase in occupancy.
But in the AMEA (Asia, Middle East & Africa) region, revPAR surged 6.2%, following a 3.1% rise in occupancy and a 1.6% increase in ADR. This was the highest revPAR growth of any global region, ahead of the Americas (+4.5%), Europe (+0.4%) and Greater China (-0.1%).
IHG said that within the AMEA region, Southeast Asia and Japan reported high single digit revPAR growth, while the Middle East and Australasia both achieved mid-single digit revPAR increases.
“Strong revPAR growth and lower costs in the managed business, partly offset by a US$3m negative impact from the renewal of a small number of long-standing contracts onto current commercial terms,” the company said in a statement. In terms of Greater China, IHG noted that “natural disasters in Western China… and the ongoing impact from the slower macroeconomic conditions” impacted performance.
“We have delivered a good performance in the first half, with our preferred brands driving revPAR growth of 3.7%,” said IHG’s chief executive, Richard Solomons. “Our global scale has allowed us to reinvest in the business whilst growing margins, resulting in solid underlying profit gains.
“Our high quality pipeline, broad geographic spread and fee-based model give us confidence in the outlook, despite the ongoing challenging economic conditions in some of our markets,” he added.
In the first half of the year, IHG opened 11 hotels in the AMEA and Greater China regions, including an InterContinental in Osaka, a Crowne Plaza resort in Xishuangbanna and the first Hotel Indigo hotel in Hong Kong.
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