IHG reports 10% profit rise after dramatic growth in fourth quarter revpar

18 February 2014 by
IHG reports 10% profit rise after dramatic growth in fourth quarter revpar

InterContinental Hotels Group said it was confident 2014 would deliver further growth after reporting a 10% rise in profit to £400m last year.

In its results for the year to 31 December 2013 the world's largest hotel group reported a 4% rise in revenue to £1.1b. During the period it opened 237 hotels worldwide and signed a further 444 into its pipeline, the highest number for five years.

Global revpar last year grew 3.8%. Revpar in Europe rose by 1.7%, led by a 1.5% increase in occupancy.

IHG said that revpar in Europe had only grown 0.9% in the first nine months, rising to 4.9% in the fourth quarter. In the UK revpar for the year rose 3%, similarly boosted by a fourth quarter rise of 7.3%.

Reported revenue in Europe decreased 8% to £239m and operating profit decreased 6% to £63m.

Last year IHG signed 50 hotels in Europe, seven of which were in London, including the InterContinental London 02.

Chief executive Richard Solomons (pictured) said: "2013 marked IHG's 10th anniversary as a standalone company, and was another year of strong performance.

"Over the last 12 months we entered into agreements to dispose of three owned InterContinental hotels, with total gross proceeds of almost $830m. This includes InterContinental Mark Hopkins, San Francisco which we have announced today. At the same time we are continuing to invest behind our award-winning brands and technology platforms to meet changing consumer behaviours and sustain our industry-leading position."

In Europe the largest proportion of rooms is operated under a franchise model, with the majority being Holiday Inn and Holiday Inn Express. Comprising 629 hotels at the end of 2013, Europe represents 15% of the group's room count.

http://www.catererandhotelkeeper.co.uk/Articles/6/12/2013/350702/tom-singer-steps-down-as-group-chief-financial-officer-at-ihg.htm" target="_blank" rel="noreferrer">
Tom Singer steps down as group chief financial officer at IHG

TagsFinance and Hotels
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