IHG celebrates “excellent year” as profits rise 10%

IHG ended the year with 722,000 hotel rooms
IHG ended the year with 722,000 hotel rooms

InterContinental Hotels Group (IHG) has called 2014 an “excellent year” as it achieved rising revenues and profits.

Announcing its preliminary full-year results, the company revealed a 6% rise in revenues, to US$1.67 billion, and a 10% jump in operating profits, to US$591 million.

Global revPAR (revenue per available room) increased 6.1% in 2014, driven by a 7.4% rise in the Americas region. European revPAR climbed 5.1%, while the Asia, Middle East & Africa (AMEA) region climbed 3.8%.

“2014 was an excellent year for IHG as we delivered against our long-term winning strategy for high quality growth,” said IHG’s chief executive, Richard Solomons.

“We expanded our brand portfolio and strengthened our position in boutique hotels, the fastest growing segment in the industry over the last five years, with the acquisition of Kimpton Hotels & Restaurants. The first properties for our innovative, consumer focused, Even Hotels and Hualuxe Hotels & Resorts brands are now open.

“Significant growth milestones were achieved across our established brands as we continue to strengthen our scale positions in the most important global markets,” he added.

In terms of inventory, IHG achieved its strongest growth since 2009, with a 3.4% year-on-year increase in global room numbers. IHG ended the year with 722,000 hotel rooms, including the newly-acquired Kimpton portfolio. It also has 197,000 more rooms in the pipeline.

In 2015, Solomons said the company faces “many macroeconomic and geopolitical uncertainties” but added that he is “confident that our strategy for high quality growth coupled with the momentum in the business positions us well for continued strong performance.”

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