InterContinental Hotels Group PLC this week reported a “strong performance” for its half year results to 30 June 2024. The hospitality company’s revenue on reportable segments rose 7% compared to H1 2023 to US$1.108 billion, with operating profit increasing 12% to US$535 million.
Total Group revenue was US$2.32b, four percent up from 2023, however operating profit was down 10% to US$525 million. Average daily room rates rose 2.0%, and occupancy lifted 0.6% on the same time last year.
During the six months to 30 June 2024, the group opened 18,000 rooms at 126 hotels and signed a further 384 hotels (57,100 rooms).
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“With thanks to our teams around the world, we are making great progress on the delivery of our strategic priorities and the clear framework to drive future value creation that we set out in February,” said Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts.
The evolved pillars for IHG’s strategy are:
- Relentless Focus on Growth: a targeted approach to expanding our brands in high-value and growth markets
- Brands Guests and Owners Love: our explicit intention to deliver for both groups, every time
- Leading Commercial Engine: investment in the technology and tools that drive commercial success and make the biggest difference to guests, owners and hotel teams
- Care for our People, Communities and Planet: a focus aligned to our 2030 Journey to Tomorrow commitments
“RevPAR growth accelerated in the latest quarter, reflecting a strong US rebound in Q2 and the breadth of our global footprint, and development activity continues to increase. Together with system growth, notable margin expansion and the benefit of returning surplus capital through buybacks, adjusted EPS growth was +12%.”
Globally, RevPAR was 3.0% for the Group in H1, fulled by a whopping 15.3% jump in Japan, and 9.2% increase in the Middle East. RevPAR in Australia was up 7.1%.
In Greater China, IHG’s RevPAR was -2.6% for the first half year (sliding from +2.5% in Q1 to -7.0% in Q2), and flat in the Americas at +1.7%.
IHG’s Luxury & Lifestyle segment across six brands (Six Senses, Regent, InterContinental, Vignette, Kimpton and Hotel Indigo) currently represents 14% of current system size (517 properties and 130,000 rooms), plus 20% of IHG’s pipeline (365 properties) are within the sector. Following strong development performances in 2023, there were a further 30 Luxury & Lifestyle hotels signed in H1 2024.
“Regent now has 22 open and pipeline hotels and is on track against our long-term ambition to have over 40 hotels in key global gateway city and resort locations.
“Six Senses opened two more hotels – La Sagesse, Grenada and Kyoto, Japan – and now has 67 open and pipeline properties, double the number at the time of its acquisition in 2019.
“Our InterContinental brand, currently executing an exciting brand elevation, added four openings and four signings in the half, taking its system and pipeline to 224 and 99 respectively, and reflecting the strong future growth opportunity still to come,” IHG reported.
Other highlights in the H1 2024 assessment included the IHG One Rewards program growing 10% year-on-year, with Reward Nights increasing 15% “demonstrating strong member engagement,” the company said.
View the full report here.
Meanwhile, IHG has kicked off H2 2024 by announcing two further properties for its Luxury & Lifestyle portfolio – Kimpton Orlando and Verno House Budapest, Vignette Collection.
The 261-room Kimpton Orlando will be located adjacent to the Kia Center arena and is slated to open in early 2027. And the newly opened Verno House Budapest, Vignette Collection is within reach of the city’s iconic attractions and landmarks, including the Hungarian State Opera House, St. Stephen’s Basilica.
