IHG’s US sales weaken
InterContinental Hotels Group (IHG) has reported that the hotel market at its Americas division stagnated last month, hurt by weaker sales as the US economy slows. According to a Bloomberg report, the group’s revenue per available room (revPAR) was unchanged in the Americas region during August, slowing from a 2.2% increase in July. Sales climbed 2% for the eight months to August.
IHG is currently spending US$1 billion to renovate its Holiday Inn brand, however revPAR for the brand declined 1.4% year-on-year during August, compared with an increase of 0.5% in July.
RevPAR at the US division’s InterContinental hotels climbed 3.3% in August, while the Crowne Plaza brand rose 1%. Holiday Inn was the only brand that experienced falling revPAR.
“This news will put further pressure on forecasts,” said Ian Rennardson, a Merrill Lynch analyst. “This continues the slowing trend in revPAR seen in the second quarter.”
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