IHG sees ‘complete’ return of business travel in Q1 update

InterContinental Hotels Group (IHG) has reported the ‘complete’ return of business, leisure and group travel following increases in global occupancy and average daily rate in the year’s first quarter.

The UK-based firm, which owns brands such as InterContinental Hotels, Holiday Inn, Crowne Plaza and Kimpton, said in its Q1 trading update that global RevPar (revenue per available room) rose 2.6 per cent year over year to $77.32.

In Continental Europe RevPar increased 6.4 per cent year over year, while the UK experienced a 2.4 per cent rise. RevPar in the Americas, meanwhile, was down 0.3 per cent year over year and Greater China saw a 2.5 per cent increase.

Global average daily rate for the quarter increased 2.3 per cent compared to the same period last year to $123.95 and occupancy increased 0.2 percentage points to 62.3 per cent. In Europe, the Middle East, Africa and Asia ADR was up 4.5 per cent year over year, while occupancy increased 2.7 percentage points.

IHG chief executive Elie Maalouf said: “Global RevPar in the first quarter of 2024 continued to grow, up 2.6 per cent, reflecting the strength of our globally diverse footprint… We opened more than 6,200 rooms across 46 hotels in the quarter, and signed nearly 18,000 rooms across 129 properties to increase our pipeline 6.6 per cent year-on-year.”

Last month the company doubled its presence in Germany to more than 200 properties following a deal with private hotel operator NOVUM Hospitality.

Commenting on the agreement, Maalouf said: “This further validates the attraction to hotel owners of joining IHG’s enterprise, and boosts confidence for our net system growth outlook.”

IHG currently has a global portfolio of 6,368 hotels (66 per cent across midscale and 34 per cent in the upscale and luxury segment), with an additional 2,079 in the pipeline, according to the company.