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InterContinental Hotels Group PLC on Thursday backed annual guidance, despite a key sales metric slowing in the second quarter reflecting economic uncertainty. ‘While some shorter term macro-economic uncertainties remain, many are subsiding,’ Chief Executive Elie Maalouf said. In response shares in the London-based holiday operator jumped 6.1% to 9,212.00 pence each in London on Thursday morning. It was the best performing stock in the FTSE 100 which was down 0.4%. Holiday Inn owner IHG said pretax profit rose 34% to $633 million in the six months to June 30 from $472 million a year prior. IFRS operating profit grew 19% to $623 million from $525 million. Revenue from reportable segments rose 6.3% to $1.18 billion from $1.11 billion, while IFRS total revenue increased 8.6% to $2.52 billion from $2.32 billion. Basic earnings per share were 300.1 US cents up 41% from cents or by 19% to 242.5 cents from 203.9 cents on an adjusted basis. First half revenue per available room rose 1.8% with Americas up 1.4%, Europe, Middle East, Africa & Asia up 4.1% but Greater China down 3.2%. The average daily rate rose 1.4% and occupancy improved by 0.3 percentage points. RevPAR growth slowed in the second quarter to 0.3% from 3.3% in the first three months of 2025. The Americas saw a 0.5% drop in the second quarter RevPAR reflecting the timing of Easter and the broader impact on business and leisure travel in light of macro-economic developments. RevPAR had grown 3.5% in the US in the first quarter. In EMEAA, RevPAR growth slowed to 3.0% in the second quarter from 5.0% in the prior quarter, in part due to fewer travel-related international events compared to the prior year. But in Greater China, the RevPAR decline eased to 3.0% in the second quarter from 3.5% in the first, helped by an easing in the strong comparatives. In addition, IHG increased the dividend by 10% to 58.6 US cents from 53.2 cents. ‘Our momentum continued in the first half of 2025, with further achievements in accelerating the growth of our brands, expanding in key geographies,’ said CEO Maalouf. Reflecting this, IHG said it remains on track to meet full year consensus profit and earnings expectations. Company compiled consensus expects RevPAR growth of 1.7%, revenue from reportable segments of $2.47 billion and adjusted earnings per share of 495 US cents. IHG believes overall conditions for the global hotels industry remain positive for continued long-term growth, supported by stable employment markets and robust levels of business activity and economic growth. IHG said it opened 31,400 rooms, 207 hotels, in the first half, a record, and up 75% year-on-year. At June 30, the firm was operating from 6,760 hotels with the milestone of 1 million rooms passed since the end of June. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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