Brits flocked back to hotels in post Covid rebound as Holiday Inn owner’s revenue up 34 per cent
Holiday Inn owner Intercontinental Hotels Group experienced a strong post-pandemic rebound, with revenues up 34 per cent in 2022 as consumer demand for hotels soared.
The group, which has over 50 hotels across London, posted total revenues of $3.bn (£3.22bn) in the year ending December 2022, up 34 per cent from $2.90bn (£2.41bn) in the same period last year.
Throughout the year, the brand signed 467 hotels in 2022 and opened 269, which it said led to net system growth of over four per cent.
The group also said it has a further 1,800 hotels in its pipeline which represents “future growth of over 30 per cent of today’s system size”.
In the past year the group has announced a string of openings internationally, including its first Holiday Inn resort in Pakistan and Crowne Plaza Hotel and Resort in Bangladesh.
“Looking to 2023, while there are economic uncertainties, we expect continued strong leisure demand in many markets, alongside further return of business and group travel and the ongoing reopening of China,” Keith Barr, chief executive officer, IHG Hotels & Resorts, said.
The board of the hotel group has also recommended a 10 per cent increase in the final dividend of 2022 and has announced a further share buyback programme to return an additional $750m( £624m) to shareholders in 2023.
Ruth Griffin is a retail & leisure partner at the law firm, Gowling WLG, said: “IHG has continued its post-pandemic recovery trajectory in earnest, as their global acquisition net continues to widen and provide shelter against changeable market conditions.
Indeed, the group is now in prime position to take advantage of the improving UK leisure market, especially in light of recent analyst comments that its room prices are competitive when compared to rivals.”
It comes as revenue per available room in London, has already exceeded pre-Covid levels, according to data by JLL.
Jessica Jahns, head of EMEA hotels and hospitality research told City A.M: “Average rates led the recovery in the UK capital, which are now 20 per cent higher than they were in 2019. While international borders have now reopened, it will take some time for international travel to return. Flight numbers to London Heathrow Airport returned to 76 per cent of pre-pandemic passenger traffic levels in 2022.”