Greater China drives IHGs half year results

first_imgThe InterContinental Hotels Group (IHG) has released its financial results for the half year to 30 June 2010, with solid performance due to their leadership position in Greater China.”Trading strengthened as the first half progressed with global Revenue per Available Room (RevPAR) up 3.9 percent overall and 7.4 percent in the second quarter. Asia is leading the recovery with Greater China reporting RevPAR up 29.4 percent in the half,” Chief Executive of IHG, Andrew Cosslett said. Greater China’s strong regional performance was boosted by the Global Expo in Shanghai where RevPAR grew 48.4 percent. “Rates are now stabilising across the world, with most markets seeing rate growth towards the end of the first half. The economic environment does remain uncertain, however, with short booking windows and limited visibility,” Mr Cosslett said. The growth was driven by strong occupancy rates, with business travellers returning in greater number. Efforts during the economic downturn to reduce costs, drive revenue and build the strength of IHG’s system and brands helped to accommodate this growth, according to Mr Cosslett. “In the first half we signed 130 hotels and opened 148, despite the tough financing environment. The quality of these new hotels is exceptionally high, particularly in China where both our pipeline and system of open hotels are skewed towards more upscale developments.” Total gross revenue from all hotels in IHG’s system was $8.9bn, up nine percent at constant currency.Recent additions bring IHG’s total system to 656,661 rooms across 4,503 hotels, an increase of four percent. IHG also signed a further 19,126 rooms over 130 hotels, taking the pipeline to 197,431 rooms across 1,302 hotels. Source = e-Travel Blackboard: C.Clast_img

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