InterContinental Hotels Group (IHG) has posted Q1 results showing global comparable RevPAR was up by 3.5%.
During the period, there was 4.3% year-on-year (YOY) net system size growth to 800k rooms, 8k rooms opened (up 16% YOY).
Also, the company signed 20k rooms, which is the strongest Q1 pace for 11 years, led by avid hotels.
In the UK, RevPAR was down 1% (London down 3%, provinces up 1%) due to strong prior year comparables and the shift in the timing of Easter.
Keith Barr (pictured), Chief Executive, said, “In the first quarter we delivered RevPAR growth of 3.5%, net system size growth of 4.3% and our best signings pace for eleven years. This strong performance reflects our focus on driving industry leading net rooms growth over the medium term, underpinned by our new strategic initiatives.
There continues to be strong momentum across the business. We have made excellent progress against our initiative to expand our footprint in the $60 billion luxury segment, announcing the acquisition of a 51% stake in Regent Hotels & Resorts in March.
'In addition, this week we entered into an agreement to rebrand and operate a high-quality portfolio of 13 hotels in the UK. This will establish IHG as the leading luxury operator in this market, launch our luxury boutique brand Kimpton Hotels & Restaurants in the UK, and establish a position for our new upscale brand, principally focused on conversion opportunities. Signings for our new mainstream brand, avid hotels, continue to exceed our expectations, and now total more than 100 hotels, one every other day since launch.
'Our roll out of IHG Concerto, incorporating our new Guest Reservation System, continues at pace, with more than 1,000 hotels now using the platform, and we are on-track to complete roll-out by the end of 2018 / early 2019.
'The fundamentals for our industry remain strong, we have the right strategy, and we are confident in the outlook for the year ahead.”