American operations push increase in IHG profits

American operations push increase in IHG profits

InterContinental Hotels Group has announced a 25-per cent increase in net profits in the six months to June 30th, thanks largely to a strong showing by its American operations.

Profit after tax jumped to $340 million in the six months to the end of June compared with net earnings of $271 million in the first half of 2012.

IHG owns the InterContinental, Crowne Plaza and Holiday Inn hotel chains.

Revenue across the group grew seven per cent $936 million over the period.

“We have delivered a good performance in the first half, with our preferred brands driving revenue per available room growth of 3.7 per cent,” IHG chief executive Richard Solomons explained.

“Our global scale has allowed us to reinvest in the business whilst growing margins, resulting in solid underlying profit gains led by our Americas region, and strong cash flows,” he added.

Solomons said that IHG would pay shareholders a special dividend totalling $350 million.

He added: “We continue to strengthen our foundation for future growth, signing more than 200 hotels into our pipeline, a notable increase on the same period of 2012, reflecting our owners’ confidence in both IHG and the industry demand drivers.

“Our high quality pipeline, broad geographic spread and fee based model give us confidence in the outlook, despite the ongoing challenging economic conditions in some of our markets.”