Asia drives IHG, with Park Lane to be sold
InterContinental Hotels Group (IHG) posted improved financial results for the first half of 2012, as it put the InterContinental Park Lane up for sale.
In its half-year results, IHG revealed that its operating profits have climbed 6% to US$286 million, driven by a 3% increase in revenues, to US$878m. These revenues were driven by hotels in the Asia Pacific region, which outperformed those in the Americas and, most notably, Europe.
According to the Evening Standard, the Park Lane hotel could sell for £200m and comes as IHG expects 80% occupancy in London and nearby in August. This has been helped by its new Holiday Inn and Staybridge properties in Stratford, with IHG also running the Athletes Village.
Growth elsewhere in the company has been fastest in the Asia, Middle East & Africa (AMEA) regions, which now accounts for more than a quarter of IHG’s global income. IHG’s revenue per available room (revPAR) in the Asia, Middle East & Africa region (AMEA) jumped 8.8% in the first six months of the year, following a 2.7% rise in average room rates and a 3.9% increase in occupancy levels. This was nearly matched by the performance of the Greater China region, which saw revPAR jump 7.9%, mainly driven by a 4.1% rise in room rates. This contrasts sharply to the performance of the European market, which saw revPAR edge up just 1.5%.
“We have delivered good results in the first half with revPAR growth from all regions through gains in both occupancy and rate. Our brands continue to perform well and we have achieved solid underlying margin growth, resulting in increased profits and strong cash flows,” said IHG’s CEO, Richard Solomons.
IHG’s Holiday Inn brand continues to outperform amongst its businesses, while its Crowne Plaza repositioning is expected to be finished by the end of 2015. IHG has also signed five hotels for its HUALUXE brand, which will be designed specifically for Chinese travellers.