InterContinental Hotels sees boost in revenue as European markets recover from terrorist attacks

Third quarter revenue per room rates were up 7.1 per cent in Europe in the three months to 30 September

Intercontinental Hotels owns Holiday Inn, among other brands (PA)

InterContinental Hotels (IHG) has enjoyed a boost in quarterly sales as European markets recovered following recent terrorist attacks.

The group, which owns brands including Crown Plaza and Holiday Inn and runs over 5,000 hotels, said that it saw average revenue per room increase by 2.3 per cent year-on-year in the third quarter.

Growth was strongest in China where revenue per room rose by 7.8 per cent.

In Europe, it grew by 7.1 per cent as tourism bounced back. IHG said this was encouraged by “double digit growth” in Belgium and Turkey.

Meanwhile, following a string of terrorist attacks in France last summer, IHG’s revenue per room rate in the country was up by 6 per cent year-on-year. Revenues in London also grew 7 per cent.

The US is the group’s largest market by room numbers. Its revenue per room rate there was up by 0.8 per cent.

The company said that Hurricanes Harvey and Irma had a mixed impact on revenue figures.

“Displacement activity together with the relief and reconstruction efforts benefited our franchise business. But performance across the managed estate was negatively impacted by the cancellation of group bookings at some hotels,” IHG said in its trading update.

Chief executive Keith Barr said: “Despite macro-economic and geopolitical uncertainties around the world, we remain confident in the outlook for the remainder of the year.”

In September, IHG launched a budget chain of hotels in the US called Avid Hotels. Mr Barr said of Avid: “With over 150 written expressions of interest and more than 50 applications in the first four weeks of our franchise sales, demand from owners has exceeded our original expectations.”