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IHG’s 2013 global revenue up

IHG Richard Solomons EDITED

IHG has posted strong 2013 numbers, with revenue and RevPAR both rising globally.

For the year to December 31, 2013, the company recorded USD$21.6 billion of total gross revenue from hotels in IHG’s system, up 2% on the previous year.

IHG reported Global comparable RevPAR growth of 3.8%, with rate up 1.8% and occupancy up 1.3%pts.

All key regions recorded RevPAR growth, including the Americas 4.3% (US 4.2%), Europe 1.7%, AMEA 6.1% and Greater China 1.0%.

InterContinental Hotels Group PLC’s CEO, Richard Solomons (pictured), said 2013, IHG’s tenth anniversary as a standalone company, “was another year of strong performance”.

“We delivered good underlying growth in revenues and profits, further reduced the capital intensity of the business and continued to generate high returns,” he said.

“Over the last 12 months we entered into agreements to dispose of three owned InterContinental hotels, with total gross proceeds of almost USD$830 million.

“At the same time we are continuing to invest behind our award-winning brands and technology platforms to meet changing consumer behaviours and sustain our industry-leading position.

“We opened 237 hotels and signed a further 444 hotels into our pipeline, the highest number for five years, thereby reinforcing our already strong brand distribution platform and with it the promise of further high quality growth.

“Our decision to increase our ordinary dividend by 9% reflects our confidence in our proven strategy to deliver high quality growth.

“Our preferred portfolio of brands, brought to life by talented people and best in class delivery systems, will enable us to continue to drive out-performance in an industry which has compelling long term prospects.

“Looking into 2014, although economic conditions in some markets remain uncertain, forward bookings data is encouraging and we are confident that we will deliver another year of growth,” he said.

Specifically in Asia Middle East and Africa (AMEA), business was good.

Comparable RevPAR increased 6.1%, with 6.4% growth in the fourth quarter. Strong trading in South East Asia and Japan led the performance with RevPAR up 9.9% and 9.6% respectively.

Trading was solid in Australasia, up 4.5%, and the Middle East, up 2.9%.

Reported revenue increased 6% to USD$230 million and operating profit decreased 2% to USD$86 million, including one USD$6 million significant liquidated damages receipt in the second half.

Looking forward, IHG said: “Given the favourable long-term outlook in several of our markets in AMEA, there are a number of significant refurbishment programmes scheduled to take place in 2014 which we expect to have a USD$4 million negative impact on IHG’s fee income in the year.”

The company made some key signings in 2013, including the InterContinental Sydney Double Bay, set to open in 2014.

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