InterContinental Hotels Group reports nine month growth in RevPAR

28th Oct 2013 08:10

InterContinental Hotels Group on Monday disappointed investors with the news that its revenue per available room (RevPAR) for its US and Americas brands in the nine months ended September 30th grew 4.5 per cent, driven predominantly by a 2.9 per cent increase in rates. For the third quarter ended on the same date RevPar growth was 3.5%, and 1.6% in September alone, which was softer than the trend from preceding months, reflecting slower group business, as seen across the industry as a whole, following the earlier timing of certain holidays. "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 group said. The company's third quarter trading was a bit below expectations at, analysts at Panmure Gordon point out, with a weak showing for the Americas in September (RevPar up 3.7% and the US at 1.6%), due to Holiday Inn. As well, the broker believes RevPar expectations may edge back a bit for the fourth quarter in both Americas and Greater China, to which one must add a strengthening sterling. With the shares changing hands at 18.9 times 2014 earnings per share Panmure reiterates its recommendation to hold.NR