InterContinental Hotels Group (IHG) has announced impressive financial results for the first half of the year, indicating a significant recovery in the hospitality industry. The London-listed hotel chain reported a net profit of $459 million, compared to $216 million during the same period last year.
The company’s pre-tax profit also experienced a substantial increase, reaching $567 million, up from $299 million. IHG’s revenue for the first half of 2022 rose to $2.23 billion, compared to $1.79 billion in 2021. These figures highlight the improved trading conditions and strong performance of IHG.
One of the key metrics viewed by the industry, Revenue per available room (RevPar), showed a remarkable growth of 24% year-on-year. RevPar in Europe, the Middle East, and Africa (EMEA) increased by 42%, while Asia witnessed a 94% rise in RevPar, with greater China leading the way. These figures can be attributed to varying levels of travel restrictions that were still in effect during the first half of 2022.
Although occupancy levels were 1.3 percentage points lower than in 2019, before the pandemic, they still saw a notable increase of 9 percentage points compared to 2021. This growth indicates a steady recovery and an optimistic outlook for IHG.
The board of IHG has declared an interim dividend of 48.3 cents per share, marking a positive development for shareholders. Despite potential macro pressures in the short term, IHG remains confident about the long-term growth potential of RevPar and its ability to drive fee income.
With continued uncertainty in the global economy, IHG acknowledges potential challenges in the second half of 2022. However, based on their strong performance thus far, they are well-positioned to navigate these uncertainties and sustain positive year-on-year RevPar in all regions.
Overall, IHG’s robust financial results reflect their resilience and innovative strategies in adapting to the evolving travel landscape. The company’s confidence in long-term growth sets a promising trajectory for the hospitality industry.