Interim Results 2013
IHG, one of the world’s leading hotel companies, is pleased to announce 3.7% growth in RevPAR (revenue per available room) in the first half of the year (six months to 30th June 2013), supporting a 7% increase in revenue for the period and a 20% increase in operating profit to $338 million*. IHG’s good performance reflects the strength of its broad portfolio of preferred brands and its geographic spread. IHG also today announced a 10% increase in the interim dividend, as well as plans to return an additional $350 million to shareholders via a special dividend, continuing our track record of industry leading shareholder returns.
Regional highlights include:
• In the Americas, a 21% increase in operating profit was underpinned by continued RevPAR progression of 4.5% and a 1.3% growth in system size.
Performance reflects IHG’s weighting towards the upper midscale segment which is traditionally more stable, with smaller peaks and troughs than with upscale and luxury brands.
• In Europe, we have seen resilient trading in our key markets - with RevPAR up 1.6% in the UK, 1.1% in Germany and 4% in France - supporting a 6% increase in operating profit.
• In Greater China, we outperformed the industry by 5.9% points with revenue up 4% and profits flat as we invested in future growth. We are also delighted to announce that we signed four new HUALUXE Hotels and Resorts in the period, taking the pipeline to 19 hotels.
The overall development pipeline in China is up over 80% year on year.
• Across Asia, Middle East and Africa (AMEA), RevPAR was up 6.2% with Southeast Asia and Japan reporting high single digit RevPAR growth and the Middle East and Australasia achieving mid-single digit RevPAR increases.
Richard Solomons, Chief Executive, commented: “We have delivered a good performance in the first half, with our preferred brands driving RevPAR growth of 3.7%, including 4% in the second quarter.
Our global scale has allowed us to reinvest in the business whilst growing margins, resulting in solid underlying profit gains led by our Americas region and strong cash flows.
Consistent with our long track record of creating value for shareholders, we today announce a $350 million special dividend. In addition we are increasing the interim dividend by 10% reflecting our good first half results and the confidence we have in the future prospects of the business.
We continue to strengthen our foundation for future growth, signing more than 200 hotels into our pipeline, a notable increase on H1 2012 reflecting our owners’ confidence in both IHG and the industry demand drivers. Our high quality pipeline, broad geographic spread and fee based model give us confidence in the outlook, despite the ongoing challenging economic conditions in some of our markets.”
Notes to Editors:
IHG (InterContinental Hotels Group) [LON:IHG, NYSE:IHG (ADRs)] is a global organisation with a broad portfolio of nine hotel brands, including InterContinental® Hotels & Resorts, Hotel Indigo® Hotels, Crowne Plaza® Hotels & Resorts, Holiday Inn® Hotels and Resorts, Holiday Inn Express® Hotels, Staybridge Suites® Hotels, Candlewood Suites® Hotels, EVEN™ Hotels and HUALUXE™ Hotels & Resorts.
IHG manages IHG® Rewards Club, the world’s first and largest hotel loyalty programme with over 74 million members worldwide.
The programme was relaunched in July 2013, offering enhanced benefits for members including free internet across all hotels, globally.
IHG franchises, leases, manages or owns over 4,600 hotels and 678,000 guest rooms in nearly 100 countries and territories. With more than 1,000 hotels in its development pipeline, IHG expects to recruit around 90,000 people into additional roles across its estate over the next few years.
InterContinental Hotels Group PLC is the Group’s holding company and is incorporated in Great Britain and registered in England and Wales.
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