IHG delivers 'solid' third quarter but markets mixed

5th Nov 2013 07:12

- RevPAR grows 3.3 per cent- AMEA buoys growth in Q3- 8,000 rooms added, pipeline strongHoliday Inn and Crowne Plaza operator InterContinental Hotels Group (IHG) said it delivered a 'solid' performance in the third quarter with global revenue per available room (RevPAR) up 3.3 per cent.The company said it saw RevPAR growth across all its four major geographies during the three months to September 30th, driven by its preferred brands. Chief Executive Richard Solomons said: "Despite the ongoing challenges in some of our markets, current trading trends give us confidence for the rest of the year and our strategy for high quality growth positions us well for continuing success into the future."The best-performing region was Asia, Middle East and Africa which grew by 5.4%, however growth elsewhere was a little subdued. RevPAR increased by just 0.7% in Greater China reflecting the impact of flooding and landslips and the earlier timing of the Mid-Autumn Festival in September.Growth in the Americas was 3.7% though a slowdown was noted in September (2.1%) due to the earlier timing of certain holidays.European RevPAR increased by 1.3% in the face of some tough comparatives, with the UK growing by 1.5% despite the Olympic Games boosting results last year. However, German RevPAR slipped 2.8% as a result of a strong trade fair schedule the year before, while French growth (0.4%) was held back by the earlier timing of Ramadan and the absence of the biennial Paris Motor Show which was held last year.Some 8,000 rooms were opened during the period, taking the system size to 679,000 across 4,653 hotels, a 1% increase compared with last year. Meanwhile, a further 16,000 rooms were signed, up 18% year-on-year, taking the pipeline to 180,000 rooms at the end of the quarter with over 40% under construction.BC