IHG reveals strong profit and revpar growth in 2011 results

The preliminary results from the UK-based global hotel operator show revenue grew last year by 9 per cent worldwide and by over 20 per cent in Europe. The jump was driven by rises in RevPAR growth in the US (7.9 per cent) and China (10.7 per cent) but the company, which operates the Holiday Inn and Crowne Plaza brands, claimed it remained confident in European markets despite economic difficulties.

Richard Solomans, chief executive of IHG, said: “The strength of our brands, underpinned by our global systems and scale, delivered 6.2 per cent growth in RevPAR in the year. We have continued to outperform the industry in key markets such as the US and Greater China. We are strengthening our business through developing our brand portfolio supported by targeted investment.”

“Looking ahead, in spite of considerable uncertainty in the Eurozone, IHG is well positioned globally to benefit from positive long term industry trends and, in particular, growing demand in emerging markets,” he said.

Europe and the UK​

Although growth remains more modest in Europe, compared to China where the company is increasing the scale of its presence and the Americas where the franchise business drives performance, the company saw revenues rise in the region.

However the picture remains challenging for IHG in Europe as the company reported a fall in RevPAR in the fourth quarter of the year across the continent and a 0.7 per cent drop in the UK although the figures have picked up for the region in the first month of 2012.

Openings​

The company, which boasts more hotel rooms globally than any other hotel operator, signed 38 hotels in Europe in 2011 amounting to almost 6,000 hotel rooms. In June 2011 BigHospitality reported on 19 new hotels that had been added to the IHG UK portfolio in the previous year​.

Three Hotel Indigo branded properties opened up in the UK last year including in Birmingham and Liverpool, where Marco Pierre White runs a named restaurant​. Hotel Indigo is the upscale boutique brand for IHG and the first property outside the Americas opened in Paddington, London in 2008.

The relaunch of the budget Holiday Inn brand continued last year with new openings as well as removals of five hotels in Europe from the portfolio due to the relaunch. Future growth for the company in Europe is being driven by the midscale offering which represents 65 per cent of room signings in 2011 for the hotel development pipeline.

IHG also operates the InterContinental Hotel brand and in the preliminary results the company revealed the InterContinental London Park Lane had delivered high RevPAR growth of 7.3 per cent in 2011.