2023-08-08 13:36:00 ET
InterContinental Hotels Group PLC ( NYSE: IHG ) rose 3% on Tuesday after reporting quarterly earnings.
Non-GAAP EPS for the first half of the year of 182.7 cents compared to 121.7 cents a year earlier. Revenue of $1.03B was up 22.6% from the year earlier. The firm’s fee margins also expanded from 55.5% to 58.8%.
“Travel demand is very healthy, with RevPAR improving year-on-year across all our markets and exceeding 2019 pre-pandemic peaks for four consecutive quarters,” Chief Executive Officer Elie Maalouf said in a statement.
“In the Americas and EMEAA regions, leisure demand has remained buoyant and business and group travel continued to strengthen, while in Greater China, demand has rebounded rapidly.”
Maalouf said the company will soon announce the launch of a new brand targeted at “midscale conversion opportunities.”
Maalouf was appointed CEO last month after several years at the company helming the Americas.
RevPAR for the first half rose 24% compared to a year earlier. Americas RevPAR was up 11%; EMEAA rose 42%; and Greater China jumped 94%.
“There have been no broad signs of consumer price resistance or cooling of leisure demand to date,” the hotelier said in a statement.
“Some specific U.S. resort destinations that had already experienced very strong demand-driven pricing last year have seen rates ease, with this offset by increased leisure travel to other destinations, including international trips to locations where IHG’s global distribution reach has captured strong demand.”
Recovery in business demand has continued, the firm said.
IHG is up 11% so far this year and up 30% in the past 12 months.
More on InterContinental Hotels Group:
- InterContinental Hotels reports H1 results
- InterContinental Hotels Group PLC ( IHG ) Q1 2023 Earnings Call Transcript
- InterContinental Hotels: Demand Remains Robust Despite Trickier Macro Backdrop
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InterContinental Hotels gains on strong quarter; new brand coming