IHG reports flat revpar in London due to ‘industry-wide supply increases'

21 October 2016 by
IHG reports flat revpar in London due to ‘industry-wide supply increases'

InterContinental Hotels Group (IHG) has reported that revpar has slowed worldwide, with a flat performance in London due to "industry-wide supply increases".

Regional growth in the rest of the UK was among IHG's better performing regions, with a 2.5% increase in revenue per available room in the third quarter of 2016.

Global Q3 comparable revpar was up 1.3%. IHG opened 7,000 rooms in the period, while it has signed a further 19,000, taking its pipeline to 230,000 rooms.

Chief executive Richard Solomons said: "We delivered a solid performance in the third quarter, leveraging our global scale to drive 3.8% net system growth and 1.3% revpar growth.

"Enhancements to IHG Rewards Club, including the roll-out of our preferential member pricing initiative, Your Rate, continue to drive excellent results. This, together with our initiatives to use digital innovation to enhance all stages of the guest journey, means we will continue to generate more customised and informed interactions with our guests and deliver improved returns for owners.

Looking ahead, while industry revpar growth has slowed, the fundamentals for the sector, and particularly for IHG, remain compelling. This, combined with our winning strategy and the strength of our cash generative business model, will enable us to drive sustainable growth into the future."

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IHG operating profit up 2%, while turnover drops 8% >>

TagsFinance and Hotels
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