The Intercontinental Hotels Group (LON: IHG) share price rose 2.44% after announcing its half-year results for the six months ended 30 June 2023. The hotel group generated revenues worth $1,031 million in H1 2023, marking a 23% improvement from the $840 million recorded in H1 2022.
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The hotel group’s revenues from its fee business grew 21% to $799 million compared to $659 million in H1 2022. The company’s operating profits increased by 27% to $479 million from $377 million in 2022. The firm’s fee margins also expanded from 55.5% to 58.8%.
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IHG’s total revenues were $2,226 million on a group basis, marking a 24% increase from H1 2022’s $1,794 million. Furthermore, the company’s operating profits surged 62% higher to $584 million from $361 million.
The company reported strong trading during H1 2023, as evidenced by the annual 24% revenue increase per available room (RevPAR). The company's upbeat RevPAR marked a 6.8% improvement from Q1 2019 and a 9.9% improvement from Q2 2019 before the COVID-19 pandemic.
IHG recorded growth in all markets where it operates, including the Americas’ which recorded an 11% improvement in RevPAR, and the EMEAA region recorded 42% growth. The greater China region recorded 94% growth in RevPAR.
The hotel group also recorded significant growth in the number of rooms signed under it amid improvements in fee margins. The company also invests in its powerful enterprise platform to deliver results for guests and owners.
Elie Maalouf, the CEO of IHG Hotels & Resorts, said: “I am honoured to take over as IHG's group CEO and excited to look ahead with our talented teams and owners all around the world to an important next chapter of growth. Our teams have delivered strong results in the first half, with financial performance, hotel openings and signings all significantly above prior-year comparisons. Travel demand is very healthy, with RevPAR improving year-on-year across all our markets and exceeding 2019 pre-pandemic peaks for four consecutive quarters. In the Americas and EMEAA regions, leisure demand has remained buoyant, and business and group travel continued to strengthen, while in Greater China, demand has rebounded rapidly.”
The Intercontinental Hotels (IHG) share price.
The Intercontinental Hotels (IHG) share price rose 2.44% to trade at 5799.0p, from Monday’s closing price of 5661.0p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.