Intercontinental Hotels (IHG) Share Price Fell 3.1% on Q3 Results

The Intercontinental Hotels Group (LON: IHG) share price fell 3.09% after its Q3 2023 trading update was released. The company noted that its Revenue Per Available Room (RevPAR) showcased a notable increase of 10.5% compared to 2022.

The increase in RevPAR can be attributed to the following regional performances: the Americas region saw a 4.1% rise, EMEAA (Europe, Middle East, Africa, and Asia) experienced a substantial increase of 15.9%, and Greater China demonstrated an impressive 43.2% surge.

Comparing Q3 group RevPAR to the pre-pandemic levels of 2019, the growth remains significant, with a 12.8% increase. This growth is more pronounced when examining regional performances, with the Americas region achieving a robust 13.8% surge, EMEAA realising a remarkable 17.5% improvement, and Greater China showing a steady 9.3% increase.

In addition to the RevPAR growth, the average daily rate also demonstrated positive momentum, with a 4.1% increase compared to 2022 and an impressive 14.8% increase compared to 2019. Occupancy rates followed a similar trend, showcasing a 4.1% increase compared to 2022, albeit a slight 1.3% decrease when measured against 2019.

In the third quarter, IHG opened 7,700 rooms across 50 hotels, a performance consistent with the previous year. The company’s global system now encompasses 930,000 rooms distributed across 6,261 hotels. Among these, 67% fall within the midscale segments, while the remaining 33% cater to upscale and luxury segments.

Notably, the group has made significant strides in expanding its reach, signing agreements for an additional 16,800 rooms (across 123 hotels) in Q3, marking a 27% increase compared to 2022. 

Elie Maalouf, the CEO of IHG Hotels & Resorts, said: “Travel demand remained very healthy during the quarter, and I would like to thank all our teams for supporting another strong trading period. Q3 RevPAR increased 10% versus 2022 and 13% versus 2019, representing the fifth quarter of sequential improvement exceeding pre-pandemic highs. Greater China continued its excellent rebound, with RevPAR now above 2019, which the Americas achieved in the second quarter of last year and EMEAA in the fourth quarter. Group-wide occupancy was 72%, just one percentage point behind 2019, which further confirms the near-complete return to pre‑Covid levels of demand.”

Intercontinental Hotels (IHG) share price. 

The Intercontinental Hotels (IHG) share price fell 3.09% to trade at 5955.0p, from Thursday’s closing price of 6145.0p.