|
InterContinental Hotels Group said it is on track to meet profit consensus for 2025, after a ‘strong trading performance’ in the first-quarter. Shares in IHG rose 2.9% to 8,860.00 pence each in London on Thursday. Revenue per available room, a key metric in the hotel sector, increased 3.3% on-year in the first quarter, picking up speed from growth of 2.6% in the same period a year ago. The Berkshire, England-based owner of the Holiday Inn owner said its RevPAR rose 3.5% in the Americas, 5.0% in the Europe, Middle East, Asia & Africa region, but fell 3.5% in Greater China. ‘We had strong trading performance and development activity for our world class brands in Q1, despite increased volatility in the macro environment. Global RevPAR grew 3.3%, reflecting the strength of our globally diverse footprint and increases across each of our three demand drivers of Business, Leisure and Groups,’ Chief Executive Officer Elie Maalouf said. Maalouf said IHG opened 14,600 rooms across 86 hotels in the quarter, ‘well over double’ the same period last year. The CEO added: ‘Looking ahead, while noting that some forward economic indicators have softened, our comparable on-the-books global revenue for Q2 continues to show growth on the same position a year ago.’ ‘As a result, while still early, we remain on track to meet full year consensus profit expectations,’ the CEO added. IHG explained the business has no material direct exposure to tariffs on the fees charged to and therefore the revenues received from hotel owners, or on the operating costs that IHG incurs. But the firm accepted periods of macro-economic uncertainties and challenges can lead to broader impacts on business and consumer confidence, which can in turn impact travel spending patterns in the shorter-term. Nonetheless, IHG said it is ‘encouraged’ by the global revenue on-the-books for the second quarter and remains ‘confident’ that the attractive long-term structural growth drivers for both demand and supply remain unaltered. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
