Hotel giants see rising profits in 2015

By Mark Elliott On Jul 31, 2015

TD Guest Writer

Guest Writers are not employed, compensated or governed by TD, opinions and statements are from the specific writer directly

IHG remains the biggest hotel group, in terms of portfolio size (photo by StockPhotosArt)

The world’s largest hotel groups have experienced rising revenues and profits in the first half of 2015.

Releasing their financial results for the January-June period, InterContinental Hotels Group (IHG), Marriott International, AccorHotels and Hilton Worldwide all posted improved figures.

Hilton saw the strongest growth in terms of revenue, rising 9.8% to US$5.52 billion, while Marriott climbed 6.3% to US$7.2bn. AccorHotels’ half-year revenues rose 5.1% to EUR2.73bn (US$2.99bn), while IHG edged up 0.8% to US$915 million.

But in terms of operating profits AccorHotels experienced the strongest growth, rising 29.2% to EUR239m. Marriott’s profits were similarly impressive, jumping 23% to US$701m, while Hilton’s operating profits climbed 18.6% to US$917m. IHG recorded an 8.7% rise to US$337m.

Marriott’s revenue per available room (revPAR) increased 5.9% in the first half, while Hilton rose 5.8%, IHG 5.1% and AccorHotels 3.2%.

IHG remains the largest hotel group in terms of portfolio size, with 4,942 properties comprising 724,018 rooms. But Marriott leads the way in terms of inventory, with 742,635 rooms across its 4,317 hotels. Hilton operates 4,440 hotels with 731,851 rooms, while AccorHotels has 3,792 hotels with 495,072 rooms.

EXPERT OPINION