IHG hails Holiday Inn relaunch

9th Aug 2011 07:06

Global hotels group InterContinental Hotels Group (IHG) saw revenue per available room (RevPAR) grow by 6.7% from a year earlier in the first half of 2011, driven by strong demand in Greater China and the US, where the Holiday Inn relaunch is delivering sustained outperformance.First half revenue rose 10.1%, or 8% using constant exchange rates (CER), to $850m from $772m last year. Regional revenue gains were: Americas 5.9%; Europe, Middle East and Africa (EMEA) 16.7%; Asia Pacific 13.9%; Central 8.0%.Operating profit jumped 23% (CER:21%) to $269m from $219m in the first half of 2010, while profit before tax rose 6.8% to $205m from $192m.Focusing on just the second quarter, however, profit before tax tumbled 11.9% to $111m from $126m the year before.Total adjusted earnings per share (EPS) for the half-year was 59.2 cents, up 26% from 47.0 cents a year earlier.Net debt was whittled down to $818m from $1,019m at the end of June 2010, as the company realised over $140m from the sale of interests in four hotels this year.The interim dividend has been hiked to 16.0 cents from 12.8 cents at the interim stage last year."Whilst we continue to monitor the uncertain economic outlook, we look forward with confidence in the currently favourable hotel trading environment of record demand and low supply growth in many markets," said Richard Solomons, chief executive of IHG.2011 net system growth is still expected to be modest, with the group targeting annual medium term growth from 2012 of 3%-5% .--jh