InterContinental Hotels Reports 2Q Profit

On Tuesday, InterContinental Hotels Group reported a profit for the 2nd quarter due to an increase in business travel, as well as more growth in the Chinese market. For the 3 months ending June, the hotel chain had an US$87 million net profit in comparison to the loss of US$56 million they reported for the same period last year.

Revenue for InterContinental increased 9.3% from US$375 million to US$410 million. Revenue per available room (RevPAR) also increased 7.4% internationally, while RevPAR in Asia rose 29.4% for the first half. This led the company to increase their half-year dividend by 5% to US$0.128 per share.

InterContinental Hotels Group chief executive Andrew Cosslett said that room rates are becoming stabilized around the world after falling due to the recession. Most markets recorded growths by the end of the first half as well, he continued. However, he noted that the environment of the economy is still uncertain with limited visibility and short booking windows.

The hotel group also noted that the US$1 billion relaunch of Holiday Inn, one of their many brands, is still on track. They have revamped 2,600 locations out of the planned 3,400 so far.

Meanwhile, InterContinental is also planning to open another location in Westminster. There are already 255 hotels operated by the company in the UK, and they plan to open another 35 over the next 2-3 years. This is set to create 3,000 more jobs in the country. A spokesman said that 24 of the 35 planned hotels will be Holiday Inn locations, while 5 will be Hotel Indigos, 3 will be Staybridge Suites and 2 will be Crowne Plazas.