(Reuters) – Holiday Inn-owner IHG hiked its interim dividend on Tuesday and said it expected room revenue growth to remain positive across its regions in the second half of 2023, “irrespective of any” macroeconomic pressures.
IHG’s global revenue per available room (RevPAR), a key performance indicator for the hotel industry, rose 17% in the quarter ended June 30 from a year earlier, and 9.9% compared to 2019 levels, aided by higher room rates and a rebound in China.
The owner of Crowne Plaza, Regent, and Hualuxe hotel chains said its operating profit from reportable segments rose 27% to $479 million in the six months to June. It did not specify profit numbers for the quarter.
“In the Americas and EMEAA (Europe, Middle East, Asia and Africa) regions, leisure demand has remained buoyant and business and group travel continued to strengthen, while in Greater China, demand has rebounded rapidly,” said IHG’s newly appointed CEO and former Americas head Elie Maalouf, who replaced Keith Barr in July.
Leisure travel has been booming since the pandemic restrictions ended, and hotel operators have benefited from people willing to spend big bucks on their vacations despite the elevated cost of living. This helped U.S. peers Marriott and Hilton lift their outlooks recently.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Milla Nissi)
