IHG reports strong first-half Asia-Pacific growth

INTERCONTINENTAL Hotels Group (IHG) posted positive first-half 2011 figures, with Asia-Pacific RevPAR up by seven per cent, including rate growth of 3.7 per cent.

Excluding Japan (32 properties) where the earthquake and resultant events negatively impacted growth, IHG’s RevPAR in the region grew 11.6 per cent. Greater China was IHG’s strongest-performing market, with RevPAR up 12.7 per cent, including rate growth of 7.1 per cent.

In the second quarter alone, Asia-Pacific RevPAR grew 4.4 per cent, with 2.7 per cent rate growth. Excluding Japan, second quarter RevPAR growth was 9.8 per cent.

The group’s Asia-Pacific revenue increased 14 per cent to US$156 million and operating profit increased 31 per cent to US$46 million. This was driven by strong RevPAR growth and a five per cent increase in year-on-year room count, led by Greater China, up 11 per cent.

Managed operating profit increased by US$9 million to US$39 million, despite the US$3 million impact from the natural disasters in Japan and New Zealand.

IHG signed 4,978 rooms (22 hotels) in Asia-Pacific during the half, comprising nine hotels in Greater China; four hotels in India as part of the deal with Duet Hotels India; six hotels in Indonesia and three hotels in Thailand.

4,538 rooms (15 hotels) were opened in Asia-Pacific, including three hotels in India and nine in Greater China, where IHG now has 154 hotels in operation and 142 in the pipeline.

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