The hotel group saw total gross revenue rise 7 per cent to $11.1bn, with profits up 6 per cent on an underlying basis and global comparable RevPAR up 5.8 per cent in the six months to 30 June 2014.
Europe-wide profits and revenues were hit by a $7m revenue fall at IGH’s only remaining owned hotel on the continent, the InterContinental Paris – Le Grand, which has recently undergone refurbishment. The disposal of the InterContinental London Park Lane hotel also hit first half figures.
However, strong growth in IHG’s managed and franchised businesses helped offset this decline, resulting in a modest 2 per cent fall in revenue and 3 per cent fall in operating profit for the region on an underlying basis.
UK hotels outperformed those in the rest of Europe, with UK RevPAR up 8.7 per cent compared to a 4.9 per cent average.
Richard Solomons, chief executive of IHG, said: "We have achieved a strong first half performance, with our preferred brands continuing to drive good momentum through the second quarter. With underlying operating profit up 6 per cent and solid net system growth, our long-term winning strategy is delivering results.
“Looking ahead, whilst several of our key markets continue to experience some political or economic uncertainty, we are encouraged by current trading trends.”
Expanding pipeline
IHG has added 14 hotels to its European pipeline so far in 2014, with signings focusing on Holiday Inn and Holiday Inn Express brands.
In the first six months of the year the group signed three new Holiday Inn Express hotels in the UK, and began construction on the Holiday Inn Manchester City Centre with parter Dominvs
Second-half signings already include four new Holiday Inns in Cardiff, West London, Heathrow Terminal 5 and Birmingham North, and three new Holiday Inn Express hotels in London Vauxhall, Leigh and Wigan.
The group has also redesigned its ‘The Academy’ meeting spaces at various Holiday Inn properties, with the aim of stealing more market share in the MICE market.