IHG reports UK revpar fall as London business falters

IHG has seen revenue per available room (revpar) fall 1% in the UK in the first quarter of 2018, pulled down by a 3% drop in London.

The hotel firm, which yesterday announced it was to rebrand the 13-strong Principal hotels group following its sale, said that the fall in revpar in the Americas and Europe was down to strong comparables influenced by the timing of Easter.

Globally, revpar was up 3.5%, with rate up 1.9% and occupancy up 1 percentage point. China and Hong Kong saw the greatest growth, with revpar up 11% in the former and 15% in the latter.

The trading update also confirmed the agreement to rebrand the Principal portfolio of hotels to Kimpton Hotels & Restaurants. It is expected that the Principal hotels in London, Manchester, one in Edinburgh and one in Glasgow will join Kimpton, with the others yet to be decided.

IHG chief executive Keith Barr said: "In the first quarter we delivered revpar growth of 3.5%, net system size growth of 4.3% and our best signings pace for 11 years. This strong performance reflects our focus on driving industry leading net rooms growth over the medium term, underpinned by our new strategic initiatives.

He added: "This week we entered into an agreement to rebrand and operate a high-quality portfolio of 13 hotels in the UK. This will establish IHG as the leading luxury operator in this market, launch our luxury boutique brand Kimpton Hotels & Restaurants in the UK, and establish a position for our new upscale brand, principally focused on conversion opportunities."

Principal hotels to split between three brands following sale by Starwood Capital >>

IHG to bring Kimpton Hotels to the UK following Principal acquisition >>

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