InterContinental Hotels Group (IHG) has released results for the second quarter of 2024.
Highlights include:
- Operating profit up 12% on an underlying basis and adjusted EPS also up 12%
- Global RevPAR up 3%—including U.S. RevPAR which was positive from April and up 2.5% for Q2, as well as an increase of 7.5% in the EMEAA region
- Net system growth 3.2% year-on-year with 18,000 rooms opened across 126 hotels
- A record 57,100 new rooms signed across 384 hotels, 67% more than in the same period last year.
“With thanks to our teams around the world, we are making great progress on the delivery of our strategic priorities and the clear framework to drive future value creation that we set out in February,” said Elie Maalouf, CEO, IHG Hotels & Resorts. “RevPAR growth accelerated in the latest quarter, reflecting a strong U.S. rebound in Q2 and the breadth of our global footprint, and development activity continues to increase. Together with system growth, notable margin expansion and the benefit of returning surplus capital through buybacks, adjusted EPS growth was 12%.
“We celebrated 126 hotel openings in the half and the signing of a record-breaking 384 properties, equivalent to more than two a day. These included the first six openings and 118 signings from the NOVUM Hospitality agreement, which doubles our presence in the important and attractive German market. After growth of 7% in Q1, a very busy Q2 saw 23% more signings year‑on‑year or a more than doubling when including NOVUM, and this keeps us on track for net system size growth expectations.
“We continue to strengthen our enterprise to position IHG as first choice for guests and owners, further improving and growing our brands, driving loyalty contribution, rolling out new hotel technology and increasing our ancillary fee streams. Our cash generation and strong balance sheet continue to support further investment in growth, and we are confident in capitalizing on our scale, leading positions and the attractive, long-term demand drivers for our markets.”
