Holiday Inn-owner IHG hiked its interim dividend on Tuesday and said it expected room revenue growth to remain positive across its regions in the second half of 2023, 'irrespective of any' macroeconomic pressures.
IHG's global revenue per available room (RevPAR), a key performance indicator for the hotel industry, rose 17% in the quarter ended June 30 from a year earlier, and 9.9% compared to 2019 levels, aided by higher room rates and a rebound in China.
Operating Profit
The owner of Crowne Plaza, Regent, and Hualuxe hotel chains said its operating profit from reportable segments rose 27% to $479 million in the six months to June.
It did not specify profit numbers for the quarter.
Leisure Travel Booming
Leisure travel has been booming since the pandemic restrictions ended, and hotel operators have benefited from people willing to spend big bucks on their vacations despite the elevated cost of living.
This helped US peers Marriott and Hilton lift their outlooks recently.
'Rebounded Rabidly'
"In the Americas and EMEAA (Europe, Middle East, Asia and Africa) regions, leisure demand has remained buoyant and business and group travel continued to strengthen, while in Greater China, demand has rebounded rapidly," said IHG's newly appointed CEO and former Americas head Elie Maalouf, who replaced Keith Barr in July.
Replacement
In May, IHG Plc chief executive Keith Barr announced he would be stepping down after six years at the helm, sending its shares down despite strong first-quarter results driven by a rebound in Chinese demand.
Barr ran the company's Chinese business for several years and became CEO in 2017 at a time when online rental companies such as Airbnb had started to capture market share.
'Pent-up travel demand'
IHG said first-quarter revenue per available room (RevPAR) - a key measure of the industry's top-line performance - jumped 33%, fuelled by a 75% increase in the Greater China region.
Article by Reuters, additional reporting by Hospitality Ireland.
