Broker snap: IHG outperformed in first quarter, says Investec

9th May 2012 11:09

Investec has reiterated its buy rating and 1,700p target price for Crowne Plaza and Holiday Inn owner InterContinental Hotels Group (IHG) after first-quarter numbers came in well ahead of its forecasts."IHG has continued to benefit from an exceptionally strong continued worldwide recovery in hotels performance, as well as its status as the largest global operator with key brands," said analyst James Hollins."The pipeline and partner interest in core and emerging markets estate growth remains robust despite an ongoing difficult hotels financing market," he said.First-quarter earnings before interest and tax grew 5% year-on-year to $118m, 6% ahead of Investec's prediction of $111m. Meanwhile, revenue per available room (RevPAR) growth was 7%, against the 3% forecast, with China and the Americas driving the strong increase.The broker says it has kept its full-year forecasts unchanged "but, following Q1 outperformance, risk is to the upside".By 11:08 on Wednesday, shares were trading 0.27% higher at 1,461p.BC