IHG profits up, reveal positive outlook

InterContinental has released half year results with continuing revenue up 12% from £377m to £422m, up 20% at constant currency.
Other highlights include:

- Continuing operating profit up 5% from £106m to £111m, up 17% at constant currency.

- Operating profit including discontinued operations of £116m.
- Global constant currency RevPAR growth of 7.0%.
- Total gross revenue from all hotels in IHG’s system up 12% at constant currency to $8.3bn.
- Franchised operating profit of £122m, up 13% at constant currency. Managed operating profit of £42m, up 2% at constant currency (up 8% excluding one hotel in the Americas.)
- Adjusted continuing earnings per share up 16% from 19.2p to 22.3p. Basic earnings per share of 32.2p.
- Interim dividend up 12% to 5.7p.
- Room count up by 7,430 rooms to 563,676.  Room openings of 20,713, room removals of 13,283.
- Signings up 32% to 54,246 rooms. Development pipeline up by 29,496 rooms to 187,487 (1,414 hotels).

Commenting on the results and trading, Andrew Cosslett, Chief Executive of InterContinental Hotels Group PLC said:
“The company has had a good first half. Signings continue to run at record levels with almost 55,000 rooms signed into our development pipeline. Strong demand with relatively low levels of new supply is driving up room rates and our brands continue to outperform the market in most of our major regions and geographies.  Our outlook for the year is positive.”