IHG said European comparable RevPAR grew by 1.7 per cent year-on-year in the year ended 31 December 2013, while occupancy was up 1.5 per cent. It added that RevPAR had grown slowly at the beginning of the year, up 0.7 per cent in the first nine months, but this accelerated in the fourth quarter to 4.9 per cent growth.
The UK saw some of the biggest growth, with RevPAR up 3 per cent compared to 0.8 per cent in Germany and 2.6 per cent in France.
Reported revenue from the group's European hotels was down 8 per cent to $400m, while operating profit fell 6 per cent. However, a 7 per cent increase in franchise royalty fees and $3m property tax recovery at IHG’s Paris Le Grand hotel resulted in a 3 per cent increase in underlying revenue and a 10 per cent increase in underlying operating profit.
Worldwide performance
Global comparable RevPAR growth for the hotel group was 3.8 per cent year-on-year, with global occupancy up 1.3 per cent.
Total gross revenue from IGH hotels worldwide was $21.6bn, up 2 per cent year-on-year.
Richard Solomons, chief executive of InterContinental Hotels Group PLC, said: "2013 marked IHG’s tenth anniversary as a standalone company, and was another year of strong performance.
“We delivered good underlying growth in revenues and profits, further reduced the capital intensity of the business and continued to generate high returns.”
IHG entered into agreements to dispose of three of its hotels last year, with total gross proceeds of almost $830m, including the InterContinental London Park Lane.
“At the same time we are continuing to invest behind our award-winning brands and technology platforms to meet changing consumer behaviours and sustain our industry-leading position,” said Solomons.
The hotel group also opened 237 hotels worldwide, 21 of which were in Europe. It signed a further 44 hotels globally, 50 of which were in Europe and seven of which were in London, including the InterContinental London The O2.
“Looking into 2014, although economic conditions in some markets remain uncertain, forward bookings data is encouraging and we are confident that we will deliver another year of growth,” said Solomon.
InterContinental London The O2
Work began on the 19-storey, 452-bedroom, five star InterContinental London The O2 in July 2013 and the hotel is expected to open in summer 2015.
The hotel, which will be the third London venue under IHG’s flagship brand, will be operated by Arora Hotels and is being built as part of the £121m O2 Arena development scheme.
IHG also announced last September that it had signed a deal to open a 130-bedroom Crowne Plaza hotel at the Albert Embankment in London. The hotel is expected to open in spring 2015 and will be operated under franchise by Cannon Corporate UK.