InterContinental Hotels Group (IHG) has announced its Preliminary Results for the year to 31 December 2016.
Global comparable RevPAR was up by 1.8% (Q4: 1.7%), led by rate up 1.2%, and record occupancy levels. The firm saw a net room growth of 3.1%.
IHG signed 76k rooms into the pipeline, representing over 500 new hotels, the highest number of deals signed since 2008, demonstrating owner confidence in the brands.
In the UK, RevPAR increased by 2.6%, led by a robust fourth quarter (up 4.6%) which was boosted by a strong end to the year for tourist arrivals and leisure travel generally. The group opened 4k rooms (24 hotels), including the 706 room Holiday Inn Kensington London (pictured).
Chief Executive Richard Solomons said, “Our results clearly demonstrate our strong operational performance and the success of IHG’s long-term strategy, which have delivered a 9.5% increase in underlying profit and a 23% increase in underlying EPS.
'We continued our focus on enhancing the long-term sustainability of our competitive advantage by evolving our brand portfolio and by driving innovation in our digital and loyalty offer.
'We rolled out new formats across our Holiday Inn Brand Family which deliver significant uplifts in guest satisfaction and improved returns for owners, built momentum for our HUALUXE and EVEN Hotels brands, and took Kimpton Hotels & Restaurants and Hotel Indigo into new markets.
Solomons continued, 'We also strengthened our loyalty proposition through initiatives including ‘Your Rate’ helping to drive a 16% increase in member enrolments.
'The fundamentals for the hospitality industry remain compelling. Despite the uncertain environment in some markets, we remain confident in the outlook for the year ahead, as well as our ability to deliver sustainable growth into the future.”