Intercontinental Hotels notched up a healthy rise in quarterly sales as disruption from last month’s hurricanes in the Caribbean and parts of the US was offset by a bounce-back in European markets tourists had avoided last summer in the wake of terrorist attacks.
The franchiser of Crowne Plaza and Holiday Inns said revenue per average room rose 2.3 per cent year-on-year in the third quarter.
In Europe, revenue per room rates rose 7.1 per cent in the three months to September 30, which IHG said was driven by “double digit growth” in Belgium and Turkey. In France, which suffered three severe terrorist attacks last summer including a vehicle-ramming incident in Nice, IHG’s revenue per room rates were up 6 per cent. London revenues were also 7 per cent higher.
Performance was weaker in the US, where revenue per room rates rose 0.8 per cent as hurricanes Irma and Harvey had what the company said was a “mixed impact”.
“Displacement activity together with the relief and reconstruction efforts benefited our franchise business,” IHG said. “But performance across the managed estate was negatively impacted by the cancellation of group bookings at some hotels.”
“Despite macro-economic and geopolitical uncertainties around the world, we remain confident in the outlook for the remainder of the year,” chief executive Keith Barr said.
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