IHG Achieves Strong Revenue Growth Despite Challenging Restrictions, Driven by Impressive London Performance

IHG Achieves Strong Revenue Growth Despite Challenging Restrictions, Driven by Impressive London Performance

Despite the United Kingdom’s earlier relaxation of Covid-19 restrictions, IHG (InterContinental Hotels Group) faced a challenging comparison period.

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Nevertheless, there was an impressive 18% increase in revenue per available room.

This growth was largely driven by a remarkable 22% surge in London.

Departed CFO Paul Edgecliffe-Johnson, in an interview with the Standard in February, had hinted at the potential for further recovery in the capital city.

Diverse Traveler Types Contribute to Growth

The surge in revenue encompassed a diverse range of travelers, with both business and leisure segments showing strong expansion.

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Exponential Growth in China

Remarkably, the most significant growth occurred in China, where revenue surpassed expectations by more than doubling.

New Leadership and Vision

Following the departure of Keith Barr to the United States at the end of June, Elie Malouf assumed the role of IHG’s CEO.

Expressing enthusiasm for his new position, Malouf looks forward to the next phase of growth in collaboration with the global teams and owners.

The first half of the year demonstrated strong performance across various aspects, including financials, hotel openings, and contract signings, all notably surpassing the figures from the previous year.

Resilient Travel Demand Across Markets

Malouf underscored the robust travel demand, with revenue per available room (RevPAR) showing consistent year-on-year improvement across all markets.

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This improvement even exceeded pre-pandemic peaks from 2019 for four consecutive quarters.

In different regions, leisure demand remained strong in the Americas and EMEAA regions, while business and group travel exhibited signs of recovery.

In Greater China, demand experienced a rapid rebound.

Introduction of a New “Midscale” Brand

IHG is embarking on the launch of a fresh “midscale” brand.

This offering, positioned just below the pricing of Holiday Inn Express, is an exciting development.

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CFO Michael Glover emphasized that the new brand is a response to long-standing demand in this particular market segment, rather than a result of customers trading down to more affordable accommodations.

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