World Cup helps hotel firm score revenue increase

A World Cup boost helped Holiday Inn owner InterContinental Hotels Group offset a hit from the Iran war across its Middle Eastern business.

The firm said revenue per available room (RevPAR) rose by 4.8 per cent in the Americas over the half-year, with 5.4 per cent in the second quarter thanks to strong growth in World Cup football match locations.

This helped the group weather the impact of the Middle East conflict, with half-year revenues and earnings rising, despite the war affecting trading across the region and some wider international travel since it began on February 28.

The group reported revenues up six per cent on an underlying basis to £930 million for the six months to June 30, with operating profits up ten per cent at £492.4 million.

But on a statutory basis, pre-tax profits fell nine per cent to £428 million.

RevPAR rose 4.1 per cent globally over the first half, but growth slowed to 3.5 per cent in the second quarter from 4.4 per cent in the first three months as the Middle East conflict took its toll.

RevPAR across the Middle East, accounting for five per cent of IHG’s system size globally, slumped by nearly a fifth, down 19 per cent in the second quarter, following a two per cent drop in the previous three months.

Elie Maalouf, IHG Hotels & Resorts chief executive, said: “While there are ongoing impacts from the Middle East conflict, including some wider disruption to international travel flows, we continue to expect these to be fully offset by growth in demand elsewhere.”

In the UK, its third largest market with 378 hotels, the firm said RevPAR rose 3.1 per cent in the second quarter, and there was 2.3 per cent growth in Continental Europe and six per cent in Asia Pacific.

Greater China saw first-half growth of 3.1 per cent, with the first quarter boosted by Chinese New Year celebration bookings.

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