Holiday Inn operator Intercontinental Hotels Group (LON:IHG) today reported revenue of $772m for the first half-year to end-June, up 6% from $726m. Operating profit was up 22% at $219m and total adjusted EPS was 47¢, up 13% from 41.5¢. Interim dividend was raised 5% to 12.8¢, equivalent to 8p at the closing exchange rate on 6th August 2010.
Net debt at period end was $1,019m, down from $1,328m the prior year.
Total gross revenue from all hotels in its system was $8.9bn, up 9% at constant currency, while global constant currency first half RevPAR grew 3.9%, driven by occupancy. Global constant currency second quarter RevPAR growth was 7.4%, including a rate decline of 0.5%. 19,003 rooms (148 hotels) were added in the half-year to end-June, 9,982 (65 hotels) on a net basis. Total system was 656,661 rooms (4,503 hotels), up 4%. IHG said the $1bn relaunch of Holiday Inn remains on track. 2,585 hotels are now operating under the new Holiday Inn standards, 76% of the total estate. Relaunched hotels are performing at the top end of the expected range. Andrew Cosslett, CEO, said:
"Trading strengthened as the first half progressed with global Revenue per Available Room (RevPAR) up 3.9% overall and 7.4% in the second quarter. Asia is leading the recovery with Greater China reporting RevPAR up 29.4% in the half. As anticipated, occupancy drove RevPAR increases, with business travellers returning in greater numbers. Rates are now stabilising across the world, with most markets seeing rate growth towards the end of the first half. The economic environment does remain uncertain, however, with short booking windows and limited visibility.
"During the downturn we worked closely with our owners to reduce costs, drive revenue and build the strength of our system and brands. In the first half we signed 130 hotels and opened 148, despite the tough financing environment. The quality of these new hotels is exceptionally high, particularly in China where both our pipeline and system of open hotels are skewed towards more upscale developments. We have now completed the relaunch of nearly 2,600 Holiday Inn hotels worldwide out of a total of 3,400, and the performance of these hotels continues to meet or beat our expectations.
"These efforts put us in great shape to increase share in what is now a rising market. Having maintained the dividend through the recession and…
