InterContinental Hotels Group (IHG) has reported a sharp increase in profits for 2010 as the international hospitality market continues to improve.
The British group reported operating profits of $444 million for the year to December 31st 2010, an increase of 22 per cent on the figure of $363 million recorded the previous year.
InterContinental chief executive, Andrew Cosslett: “2010 was an excellent year for IHG. After a slow start to the year, the industry staged the sharpest recovery in its history, exceeding all expectations.”
Revenue at IHG increased six per cent to $1,628 million.
In total the group – which includes the Crowne Plaza, Hotel Indigo and Holiday Inn brands – offered 647,161 rooms in 2010, up 0.1 per cent year-on-year.
However, some 35,262 rooms over 260 hotels were removed.
“We signed more rooms into our pipeline than in 2009 and despite the planned exceptional number of removals to drive up quality, we grew the number of rooms in our system, led by a 12 per cent increase in China,” explained Mr Cosslett.
Holiday Inn has been keen to the success of IHG, with a $1 billion relaunch now almost complete.
Over 3,000 hotels have been upgraded, with RevPAR growth for properties operating under the new standards up by five per cent globally.
The company now plans to renovate its Crowne Plaza brand.
IHG plans to pay a full-year dividend of 48 cents a share, up from 41.4 cents in 2009.
“The industry staged the sharpest recovery in its history, exceeding all expectations,” added Cosslett said in the statement.
“Our priority is to increase market share and improve margins in an industry set for strong growth.”