RevPAR growth driving significant increase in profits
| Financial summary° | 2011 | 2010 | Actual | % change YoY CER2 |
CER2 & excluding LDs3 |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
||||||||||||||
| Revenue | $396 | $362m | 9% | 9% | 6% | |||||||||
| Operating profit | $112m | $83m | 35% | 35% | 23% | |||||||||
| Total adjusted EPS | 24.0¢ | 17.4¢ | 38% | |||||||||||
| Total basic EPS1 | 24.0¢ | 18.8¢ | 28% | |||||||||||
| Net debt | $846 | $1,077m | ||||||||||||
Andrew Cosslett, Chief Executive of InterContinental Hotels Group PLC said:
“We delivered a strong set of results in the first quarter. Global revenue per available room (RevPAR) grew 6.9%, with 18.8% growth in Greater China and 8.4% in the US, the highest growth in the US since the second quarter 2006. Underlying revenue growth of 6% was converted to 23% operating profit growth, reflecting good use of our scale and the efficiency of our business model.
“Our strategy to free up capital to drive growth for our brands is on track. Post quarter end we sold two hotels in the US, with proceeds substantially above book value. We have recently committed to enter into a joint venture with Duet Hotels to take Holiday Inn Express into India, developing 19 new hotels by 2016.
“During the quarter, we welcomed The Venetian and The Palazzo Las Vegas into our system as our first InterContinental Alliance Resorts, boosting room supply by almost 7,000 and we continue to look for further opportunities of this kind.
“We remain confident about the outlook for the rest of the year. Demand for our brands continues to strengthen with both guests and hotel owners. This is driving our performance and reinforcing our industry leading pipeline. We are well positioned to take advantage of the gathering rate momentum we now see around the world.
“My time with IHG comes to a close on 30 June and I would like to thank all the people I’ve worked with over the past six years. I now hand over the reins to Richard Solomons, confident that he and the excellent team we have in place will lead IHG to a bright future.”
