InterContinental Hotels Group Surges Past One Million Room Milestone As Profits Climb

InterContinental Hotels Group, the owner of the well-established Holiday Inn chain, has marked a significant milestone, surpassing one million rooms across its global portfolio for the first time. The FTSE 100-listed company revealed record-breaking expansion in the initial half of its financial year, opening more than 31000 rooms worldwide under its prestigious brands, including Crowne Plaza, Six Senses and Candlewood Suites.

For the six months ending 30 June, IHG reported an 8 per cent rise in revenues, reaching $2.52 billion. The hotel giant’s profit before tax jumped by a notable 34.1 per cent, climbing to $633 million compared with $472 million a year previously. This strong performance was mirrored on the stock market, with IHG shares rising by 586p, or 6.8 per cent, to £92.66 following the announcement.

The company’s key industry metric, revenue per available room (revpar), increased globally by 1.8 per cent over the period. In the Americas, revpar was up by 1.4 per cent, whilst the Europe, Middle East, Asia and Africa region saw a robust growth of 4.1 per cent. Yet the Chinese market faced challenges, with a 3.2 per cent decline in revpar, attributed to economic slowdown in the region. IHG’s Chief Executive Elie Maalouf noted that while woes in China had impacted performance, improvement appeared likely going forward.

Short-term geopolitical and economic headwinds have created a challenging backdrop for the hospitality sector. Nevertheless, stable employment markets and firm business activity have supported IHG’s long-term outlook. According to Maalouf, much of the uncertainty driven by global trade tensions has subsided, resulting in renewed confidence and higher financial market performance, especially in the United States and Europe. He indicated an increasingly constructive climate for the sector.

The company was established in 2003, following a demerger from what is now Mitchells & Butlers. Today, IHG operates 20 brands and is present in over 100 markets. City analysts have commended IHG’s management for stable margin progression and a resilient strategy that offsets pressure on revenues. Peel Hunt analysts noted that while macroeconomic conditions in the United States remain a concern, IHG’s robust margin performance has delivered strong outcomes for shareholders.

Elsewhere in the sector, Hyatt Hotels exceeded expectations in its most recent quarterly results, reporting revenues of $1.81 billion against $1.7 billion a year ago and a 1.6 per cent year-on-year revpar increase, signalling continued demand for premium hospitality experiences worldwide.