A boost to demand from the World Cup has helped Holiday Inn owner InterContinental Hotels Group (IHG) offset a hit from the Iran war across its Middle Eastern business.
IHG said revenue per available room (RevPAR), a key measure of performance for hotels groups, rose by 4.8% in the Americas over the half-year, with 5.4% in the second quarter thanks strong growth in World Cup football match locations, which it said added about 1% to growth.
This helped the group weather the impact of the Middle East conflict, with half-year revenues and earnings rising, despite the war affecting trading across the region and some wider international travel since it began on February 28.
The group reported revenues up 6% on an underlying basis to 1.26 billion US dollars (£930 million) for the six months to June 30, with operating profits up 10% at 665 million dollars (£492.4 million).
But on a statutory basis, pre-tax profits fell 9% to 578 million dollars (£428 million).
RevPAR rose 4.1% globally over the first half, but growth slowed to 3.5% in the second quarter from 4.4% in the first three months as the Middle East conflict took its toll.
RevPAR across the Middle East, accounting for 5% of IHG’s system size globally, slumped by nearly a fifth, down 19% in the second quarter, following a 2% drop in the previous three months.
Elie Maalouf, chief executive of IHG Hotels & Resorts said: “While there are ongoing impacts from the Middle East conflict, including some wider disruption to international travel flows, we continue to expect these to be fully offset by growth in demand elsewhere.”
In the UK, its third largest market with 378 hotels, the firm said RevPAR rose 3.1% in the second quarter, and there was 2.3% growth in Continental Europe and 6% in Asia Pacific.
Greater China saw first half growth of 3.1%, with the first quarter boosted by Chinese New Year celebration bookings.
