IHG reports 8% increase in revenue

InterContinental Hotels Group (IHG) saw an 8% increase in reported revenue to $2.08b (£1.6b) during 2019, according to its full-year results.

However, in the year to 31 December 2019, the hotel company’s global revenue per available room (revpar) dropped slightly, by 0.3%.

At year end, the group had 283,000 rooms in its pipeline and said its Europe, Middle East, Africa and Asia (EMEAA) region saw a "record performance" for signings, with 160 hotels signed into the pipeline.

UK revpar was up 1% for the year, with London up 3% and the provinces down 1%, despite “increasingly challenging” trading conditions in the UK during the second half of the year. IHG’s EMEAA region also saw a 27% increase in reported revenue to $723m (£556.76m).

Keith Barr, chief executive of IHG, said: "Our performance in 2019 reflects the continued successful execution of our strategy, with the investments we're making in our brands, owner offer and enterprise capabilities accelerating net room openings and supporting sustainable long-term growth. These investments are being funded by our group-wide efficiency programme, which is on track to deliver $125m of annual savings, with the majority already realised and being reinvested across the business.

“During the year we grew our estate by 5.6%, our highest rate in more than a decade, which helped deliver a 6% increase in underlying operating profit in a weaker revpar environment. We increased our ordinary dividend by 10%, and remain committed to returning surplus cash to our shareholders.

“Given the ongoing impact of coronavirus following the outbreak in China, our top priority remains the health and safety of our colleagues, guests and our partners on the ground, and we are doing all we can to support them at this difficult time."