InterContinental Hotels doubles profits

InterContinental Hotels has doubled profits and boosted revenues by half, as it continues its recovery from Covid. Announcing its half-year results to 30 June, the hotel group said that revenue had risen to $840m from $565m for the same period in 2020. Operating profit was at $377m from $188m. However, this is not quite at pre-pandemic levels, with operating profit 8% below H1 2019’s $407m. There was a mixed picture for profitability across its global portfolio: in the Americas it is now 3.5% ahead of 2019, while China is 44% below as Covid restrictions continued. Chief executive of IHG Resorts and Hotels, Keith Barr, said: “We saw continued strong trading in the first half of 2022, with increased demand for travel in most of our markets. This brought group revenue per available room very close to pre-pandemic levels in the second quarter. “Alongside leisure stays, the return of business and group travel demand continued to build over the period, and our hotels are seeing increased pricing power due to the strength of IHG’s brands, loyalty programme and technology platform.” IHG opened 96 hotels during the half, taking its portfolio to 6,028 hotels. It also signed 210 hotels, taking its pipeline to 1,858, with the potential to grow the system by nearly a third. Barr added: “We continue to see growing interest in conversion opportunities which represented more than a quarter of openings in the period.” More than 40% of the global pipeline is already under construction. The group has reduced its net debt from $1.88bn to $1.72bn, while total liquidity has reduced slightly to $2.61bn. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews