IHG boosted by new look Holiday Inn
InterContinental Hotel Group (IHG), the world’s largest hotelier, said yesterday revenue per available room (revpar) in the Americas region was boosted by the ongoing relaunch of its Holiday Inn hotels and the return of business travellers.
The company, whose brands include namesake hotels along with the Crowne Plaza and Holiday Inn, said revpar, a key industry metric, rose by 7.9 per cent at its 557 relaunched Holiday Inn hotels, strongly outperforming those which have been not yet been relaunched.
The hotelier, which typically manages or franchises hotels instead of owning them and earns 70 per cent of its profit in the United States is heavily reliant on its mid-market Holiday Inn chain.
Revpar in the overall Americas region was up 6.7 per cent in the third quarter, as business travellers continued to return in greater numbers, the group said. InterContinental will announce its full third quarter results on 9 November.
The company spent $1bn (£488m) in the makeover for the Holiday Inn brand with a new logo – in the biggest rebranding in the history of the hotel industry.
Analyst at Hargreaves Lansdown Richard Hunter said: “There has been some resurgence in the business traveller market, while the middle of the range Holiday Inn chain in the US has seen something of a surge in revpar since its relaunch. The ongoing cost-cutting programme and continuing expansion plans have also helped.”
Hunter added: “The group is well placed despite the challenges of the current environment.”
IHG shares have surged by around 48 per cent so far this year.
The company has seen an upturn in business traveller numbers following the global economic downturn. IHG is expanding at a rapid pace in China where the market is booming and ripe for massive expansion, according to the firm’s top executives. Shares in IHG closed up one per cent at 1,225p.