BTN Europe presents an overview of business travel and MICE predictions for this year
Intercontinental Hotels Group has seen pre-tax profits rise by 13 per cent to $560 million for 2012 thanks to strong growth in the US and emerging markets.
IHG, which owns the Intercontinental, Crowne Plaza and Holiday Inn brands, increased revenue by 4 per cent last year to $1.8 billion as worldwide revpar went up by 5.2 per cent and it increased the number of rooms in 2012.
Rates increased at the highest level in the US with a 6.3 per cent increase while revpar was only up by 1.7 per cent across Europe, including a 2.5 per cent rise at IHG’s UK hotels.
The company also benefited from a 4.9 per cent rise in revpar in China and by a 4.9 per cent increase in Asia, Middle East and Africa.
IHG chief executive Richard Solomons said: “2012 was another year of significant progress for IHG with our preferred brands driving revpar up 5.2 per cent, led by the US up 6.3 per cent.
“Together with 2.7 per cent net rooms growth, which is fuelled increasingly by our expansion in developing markets, this drove up fee revenues by an impressive 6.8 per cent. This growing scale allowed us to reinvest in the business while achieving better than anticipated margin progression.”
The company was also boosted by an 8 per cent increase in revpar at its landmark London hotel - Intercontinental London Park Lane. IHG has also just opened its second Intercontinental property in the capital – Intercontinental London Westminster.