Holiday Inn owner IHG swings to profit and set to launch new luxury hotel brand
InterContinental Hotels (IHG) has announced it will launch a new luxury brand as the brand swung to a profit in the first half.
The Holiday Inn owner said travel had been slow to recover in European markets and scrapped its dividend to cut costs.
The group will target high quality independent hotels for its new luxury collection with aims to take on more than 100 hotels within the 10 years.
The hotel owner swung to an operating profit of $138m, compared to a loss of $233m last year, for the six months ended 30 June 2021.
Revenue per available room (RevPAR), a key performance indicator, was up 20 per cent with recovery in Europe, Middle East, Africa and Asia the most challenged.
Vaccination and the easing of travel restrictions in certain markets drove occupancy and bookings up this summer with nearly 50 per cent of hotels achieving RevPAR above 2019 levels in July.
“Our focus on the quality of our estate remains extremely high, and we’re making rapid progress with the review of our Holiday Inn and Crowne Plaza portfolios to ensure the consistency of these leading brands and that they are well positioned for future growth,” Keith Barr, IHG chief executive officer, said.
“While there is a risk of trading volatility in the balance of the year, and discretionary business trips, group bookings and international travel will take time to fully recover, we are confident in the strength of IHG’s future prospects.”