IHG presents preliminary results of Q3
Keith Barr, CEO of the chain said: “Our continuous strategic focus on driving net room growth resulted in a 4.7% increase in network size
This morning, InterContinental Hotels Group (IHG) announced our Provisional Results for the first quarter of 2019.
In the Americas region, the firm opened 6 thousand rooms (58 hotels) in this last quarter, the highest level in seven years. As we continue to focus on improving the quality of our properties, we eliminate 2,800 rooms (20 hotels), which resulted in a 2.5% increase in the net size of our system. The chain has signed 8 thousand rooms (77 hotels) in the quarter, including the Six Senses Galapagos Islands. The Latin American and Caribbean region also saw RevPAR growth of 6%.
Keith Barr, Chief Executive Officer, InterContinental Hotels Group PLC, said: “Our continuous strategic focus on driving net room growth resulted in a 4.7% increase in network size despite a strong comparable. This will accelerate in the next quarter and we are on track to be leaders in the industry in the net growth of the network in the medium term. The RevPAR of the third quarter Group fell 0.8%, affected by tougher commercial conditions in the US. UU. and China, and the continuing riots in the Hong Kong SAR. "
"We have made further progress in the execution of our strategic initiatives, with the first franchise requests already received for Atwell Suites, our new upper-middle-class brand that was launched for the sale of franchises at the end of the quarter. We also strengthened our offer of loyalty through an exclusive alliance with renowned travel club and boutique hotel specialists, Mr & Mrs Smith, this will more than double our luxury and boutique offer for IHG Rewards Club members in new and iconic locations and improve the proposal of value for loyalty program partners. "
"Despite the weaker RevPAR environment and the challenges currently facing some of our markets, we remain confident in our financial results for the rest of the year. Our wide geographic distribution combined with the resilience of our cash generation model, our disciplined approach to cost management and the continuous execution of our strategic initiatives, position us well for the future, "concluded the executive.