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

Emma Featherstone
Friday 20 October 2017 09:51
Comments
Intercontinental Hotels owns Holiday Inn, among other brands
Intercontinental Hotels owns Holiday Inn, among other brands

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.”

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

By clicking ‘Create my account’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in