Holiday Inn owner sees revenue increase despite significant downturn in China

Intercontinental Hotel Group (IHG), the company behind Holiday Inn, has reported an increase in revenues per room, despite a significant downturn in China . The company's shares dipped in early trading following the announcement. Elie Maalouf, IHG's chief executive, expressed satisfaction with recent trading and asserted that the business is "on track" to meet market expectations.

IHG, which also owns Crowne Plaza and Hotel Indigo, disclosed a 1.5% rise in global revenues per available room for the third quarter of 2024. The company attributed this growth to "healthy business demand".



Particularly strong growth was observed in Europe and Asia, where revenue per available room increased by 4.9%, with both occupancy and room rates rising year-on-year. The Americas division saw a 1.

7% growth for the quarter, with a 1.2% increase in the US. However, a 10.

3% drop in revenues per available room was recorded in Greater China due to typhoons and public holiday timings. Mr Maalouf stated: "We have made great progress this year to further strengthen IHG’s enterprise platform, grow our brands and deliver on our growth algorithm." He added: "We remain confident in our abilities to capitalise further on our scale, leading positions and the attractive, long-term demand drivers for our markets.

" IHG also revealed it had benefited from its ongoing expansion plan, opening 98 hotels over the latest quarter. Mark Crouch, an analyst at investment platform EToro, commented: "Despite economic weakness in China and subdued demand in the US, it was strong summer demand in Europe that has driven the latest outperformance for IHG, reporting nearly 5% growth in the region." He added, "Up until recently it was the US region driving performance, highlighting the strength of IHGs diversified global footprint.

And as concerns regarding China’s floundering economy ease, IHG remain confident in their long-term prospects in the Far East." However, shares in the business dipped by 1.4% in early trading.

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