IHG: Holiday Inn owner posts rise in revenue driven by growth in Europe and Asia

Holiday Inn owner Intercontinental Hotels Group (IHG) has reported an increase in revenue, driven by growth in Europe and Asia, as the tailwinds that turbocharged its profits last year roll over into 2024.

The FTSE 100 firm, which also runs Crowne Plaza hotels, said in a trading update on Friday that its global revenue per available room rose 2.6 per cent in the first three months of 2024 from the same period last year.

It saw a 0.3 per cent decrease in its Americas business, which the firm pinned on “some adverse calendar timing”.

However, this was more than offset by an 8.9 per cent jump in its Europe, the Middle East, Africa and Asia divisions. Greater China also saw a 2.5 per cent increase.

IHG posted a 23 per cent surge in operating profit last year on the back of strong demand for travel. It announced a share buyback worth $800m (£637m), of which it has now completed $239m (£190m).

On Friday, IHG said its average daily revenue earned for an occupied room grew 2.3 per cent in the first quarter. The firm reported a 0.2 per cent increase in occupancy.

IHG operates 6,368 hotels, with 946,000 rooms. It opened more than 6,200 new rooms across 46 hotels during the three months, up 11.1 per cent from a year ago on an adjusted basis.

The firm signed 17,700 rooms across 129 hotels in the first quarter, growing its global pipeline by 6.6 per cent to 305,000 rooms across 2,079 hotels.

“Global occupancy moved up to 62 per cent and average daily rate increased by a further two per cent as pricing remained robust, reflecting the complete return of leisure, business, and group travel,” said Elie Maalouf, chief executive of IHG Hotels & Resorts.

“The combined power of our platform and efficiency of our operating model will continue to drive IHG forward. We are excited about the future and our ability to capitalise further on our strengths, scale and leading positions, and on the attractive, long-term demand drivers for our markets.”