Login to UKBP
Commercial Property News
Intercontinental Hotels report H1 profits up 29%.
The world's largest hotelier InterContinental Hotels Plc reported a 29% rise in first-half operating profits today, but said growth had slowed in the second-quarter, particularly in the U.S.
The UK-based group, which operates InterContinental, Crowne Plaza and Holiday Inn hotels, posted first-half operating profits from continuing operations of $284 million, compared to an analysts range of $281-290 million and a mean forecast of $285 million.
Overall group operating profits, including discontinued operations, rose 28% to $291 million, in line with analysts expectations.
Its half-year dividend rose 6% to 12.2 U.S. cents.
The group has exceeded it's three-year rooms target with 60,490 rooms added since June 2005.The original target was for between 50,000 and 60,000 rooms on a net organic basis by the end of 2008. In the first half they added 13,071 rooms to take their total to 598,165 rooms.
Andrew Cosslett, Chief Executive said:
“IHG had a good first half, seeing growth in both revenue per available room and in the number of hotels we operate round the world. In the half we hit the target we set the business in 2005 of adding more than 60,000 rooms on a net basis by the end of 2008. This is a big milestone and we have passed it six months early. Growth looks set to continue as we have been signing two hotels a day into our development pipeline, which now stands at almost 1,800 hotels. The $1 billion relaunch of Holiday Inn is progressing well and early feedback from our franchisees and our guests is encouraging.
“Over the last three years we have worked hard to strengthen the foundations of the business through investment in our brands, technology, reservation systems, loyalty programme and our people. This investment not only drives our room growth, but helps us outperform during times of economic uncertainty. Generally RevPAR growth slowed through the second quarter, and market conditions have become more challenging, particularly in the US. However, the long term trends for the travel industry remain positive and our broad portfolio of brands and fee based business model positions us well to take full advantage of this.’
The UK-based group, which operates InterContinental, Crowne Plaza and Holiday Inn hotels, posted first-half operating profits from continuing operations of $284 million, compared to an analysts range of $281-290 million and a mean forecast of $285 million.
Overall group operating profits, including discontinued operations, rose 28% to $291 million, in line with analysts expectations.
Its half-year dividend rose 6% to 12.2 U.S. cents.
The group has exceeded it's three-year rooms target with 60,490 rooms added since June 2005.The original target was for between 50,000 and 60,000 rooms on a net organic basis by the end of 2008. In the first half they added 13,071 rooms to take their total to 598,165 rooms.
Andrew Cosslett, Chief Executive said:
“IHG had a good first half, seeing growth in both revenue per available room and in the number of hotels we operate round the world. In the half we hit the target we set the business in 2005 of adding more than 60,000 rooms on a net basis by the end of 2008. This is a big milestone and we have passed it six months early. Growth looks set to continue as we have been signing two hotels a day into our development pipeline, which now stands at almost 1,800 hotels. The $1 billion relaunch of Holiday Inn is progressing well and early feedback from our franchisees and our guests is encouraging.
“Over the last three years we have worked hard to strengthen the foundations of the business through investment in our brands, technology, reservation systems, loyalty programme and our people. This investment not only drives our room growth, but helps us outperform during times of economic uncertainty. Generally RevPAR growth slowed through the second quarter, and market conditions have become more challenging, particularly in the US. However, the long term trends for the travel industry remain positive and our broad portfolio of brands and fee based business model positions us well to take full advantage of this.’
Tue, 12th Aug 2008