InterContinental Hotels annual revenue surges

Strong growth in the United States and China.

InterContinental Hotel, Kiev.
InterContinental Hotel, Kiev.

InterContinental Hotels Group (IHG) has reported revenue of $1.76bn for the year ended 31 December 2011, an increase of 9 per cent compared with $1.62bn a year ago.

The group posted an operating profit of $559m for the year 2011, a growth of 26 per cent compared with $444m in 2010. Net debt was $538m for the year 2011, compared with $743m a year ago.

Richard Solomons, CEO of InterContinental Hotels Group, said: “The strength of our brands, underpinned by our global systems and scale, delivered 6.2 per cent growth in revenue per available room (RevPAR) in the year. We have continued to outperform the industry in key markets such as the US and Greater China where RevPAR was up 7.9 per cent and 10.7 per cent respectively.”

Measured byrevenue per available room -- and industry measure known as RevPAR -- growth for 2011 was 6.2 per cent, while Europe and Americas RevPARs increased by 4.7 per cent and 7.5 per cent respectively. RevPAR growth in AMEA (Asia, Middle East and Africa) and Greater China was 0.9 per cent and 10.7 per cent respectively.

The company is planning to set up another 1,144 hotels, of which 40 per cent are under construction.

During 2011 the company closed sale of Hotel Indigo San Diego, Staybridge Suites Cherry Creek, Holiday Inn Atlanta-Gwinnett Place, the Holiday Inn Express Essen lease and a hotel asset and partnership interest in Australia. IHG acquired $142m from these sales proceeds.

The UK-based hotel operator, which expects to hire around 90,000 people globally over the next few years, is also looking to launch new brand for US midscale and China upper upscale in the first half of 2012.