Revpar increase drives profits at IHG
Growth in revenue per available room (revpar) has helped to drive a significant increase in profits at InterContinental Hotels Group (IHG) during the first quarter of 2011.
paracross the company's 4,422 hotels worldwide grew by 6.9%, with the strongest rise in Greater China at 18.8%.
Revenue during January to March 2011 rose 9% to £242m, while operating profit increased 35% to £68m.
The group also reported that it had cut its net debt from £672m to £516m.
"Our strategy to free up capital to drive growth for our brands is on track," said chief executive of IHG, Andrew Cosslett, who steps down at the end of June to be replaced by Richard Solomons, currently the group's chief financial officer and head of commercial development.
"We remain confident about the outlook for the rest of the year. Demand for our brands continues to strengthen with both guests and hotel owners. This is driving our performance and reinforcing our industry-leading pipeline."
Andrew Cosslett to step down as IHG chief executive >>
IHG reports a rise in rlobal revpar >>
By Janet Harmer
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