InterContinental Hotels Group saw its average daily rate (ADR) rise by 2 per cent in the first half of 2024 compared to the same period of last year, while revenue per available room (RevPAR) went up by 3 per cent year-on-year.
The company, which owns brands such as Holiday Inn, Crowne Plaza and InterContinental, also announced a 7 per cent rise in revenue from “reportable segments” to $1.1 billion during H1, while operating profit rose by 12 per cent to $535 million – up from $479 million in the first half of 2023.
Elie Maalouf, IHG’s CEO, said: “RevPAR growth accelerated in the latest quarter, reflecting a strong US rebound in Q2 and the breadth of our global footprint, and development activity continues to increase.”
Regional figures show that ADR for IHG properties increased by 3.5 per cent year-on-year in the EMEAA (Europe, Middle East, Asia & Africa) region, while RevPAR went up by 7.5 per cent in H1 compared with 2023. This RevPAR increase included a 4.8 per cent rise in continental Europe and a 2.5 per cent increase in the UK.
IHG’s revenue from business travel during the first half of the year rose by 1 per cent globally, although the number of room nights was down by 1 per cent on H1 of 2023 with the increase in revenue being driven by a 3 per cent year-on-year rise in rates from corporate travel.
Meanwhile, revenue from groups was up by 7 per cent due to a 2 per cent rise in room nights and a 5 per cent increase in rates.
IHG pointed out that these increases “build further on the already fully completed recovery for all stay occasions in 2023”.
Maalouf said that IHG had opened 126 new properties during the first six months of 2024, as well as signing contracts for another 384 hotels.
“These included the first six openings and 118 signings from the NOVUM Hospitality agreement, which doubles our presence in the important and attractive German market,” he added.
The deal with NOVUM, which was announced in April, will see 52 properties join IHG through a collaboration between Holiday Inn and NOVUM’s midscale niu brand, which will be known as Holiday Inn – the niu. 56 hotels will convert to the Garner brand and another 11 properties to Candlewood Suites, which will mark the European debuts for these two brands.