InterContinental records profit increase in challenging environment

InterContinental records profit increase in challenging environment

InterContinental Hotels Group has seen underlying operating profit rise 2.1 per cent to $344 million in the first half of 2016.

Revenue for the period, however, fell to $838 million from $915 million a year earlier.

IHG chief executive Richard Solomons said: “We continue to execute our well-established strategy as we deliver consistent, high-quality growth and generate significant operating cash flows.

“We have driven another excellent signings performance, which includes a second hotel for Kimpton outside the Americas, in Paris

“We enhanced our loyalty proposition, continued to develop our technological capabilities and grew our digital channels, supporting our unique owner proposition.

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“We have also remained focused on innovating and evolving our brand portfolio, which includes launching the latest phase of the Crowne Plaza refresh in the US.

IHG also confirmed it would increase the interim dividend by nine per cent, up to 30.0¢.

Solomons added: “The fundamentals for our industry, and particularly for IHG as one of the largest branded players, remain compelling. 

“This backdrop, combined with our winning strategy and the strength of our business model, will enable us to deliver sustainable growth into the future. 

“Despite the uncertain environment in some markets, we remain confident in the outlook for the remainder of the year.”
Global comparable RevPAR at IHG increased two per cent over the period.

IHG also recorded $11.9 billion in total gross revenue from hotels in its system, up 1.7 per cent year on year.