InterContinental Hotels posts strong China Q3 results despite slower global growth
Revenue per room growth in the greater China region rose by 0.9 per cent in the third quarter, up 1.8 per cent compared to last year
InterContinental Hotels Group (IHG) announced its highest-ever third quarter performance in the greater China region, led by growth in tier-one cities, the company announced on Friday.
The British-based global hotel company known for its InterContinental Hotels, Crowne Plaza, and Holiday Inn brands said its revenue per available room (RevPAR) rose by 0.9 per cent for greater China in the third quarter, increasing by 1.8 per cent from last year.
Kenneth Macpherson, chief executive officer for Greater China at IHG, told the Post that IHG’s presence is “very strong in the region” and will continue to grow.
“We continue to open hotels in tier one [cities],” he said, pointing to the recent launches of InterContinental in Shanghai near the National Exhibition and Convention Centre (NECC) and in Beijing’s Sanlitun area. “We have got strong distribution in many of the cities … so now we’re expanding, building out in tier two, tier three, tier four.”
IHG signed around 6,000 hotel rooms regionally in the third quarter, with 222 hotels in the pipeline at the half-year mark.
We have got strong distribution in many of the cities … so now we’re expanding, building out in tier two, tier three, tier four
Globally, IHG’s revenue per room growth slowed to 1.3 per cent in the third quarter, down from 2.5 per cent growth in the second and 4.4 per cent for all of 2015, largely from slumps in the oil industry affecting certain US states and security concerns hurting travel to countries such as France, Turkey, and Belgium.