Hong Kong protests hit InterContinental, cognac maker Remy Cointreau’s third-quarter sales as fewer tourists visit city

Protests and unrest that have disrupted Hong Kong for over four months are weighing on the results of major hotel operators and spirits makers as fewer tourists are visiting the city.

InterContinental Hotels Group (IHG), the operator of the Crowne Plaza and InterContinental hotels in Hong Kong, both reported this week declines in revenue per available room in their Asia-Pacific operations in the third quarter, citing in part the unrest in Hong Kong.

Remy Cointreau, the maker of Remy Martin cognac and Mount Gay rum, separately said on Friday that a fall in tourism in Hong Kong cut into its sales in the company’s fiscal first half ended in September. Organic sales fell 4 per cent in the period from July to September, after falling 3 per cent in the April to June quarter, the French spirits maker said.

Cognac sales from its Remy Martin brands “suffered from the fall in tourism in Hong Kong and from slower than anticipated stock replenishment by retailers in the United States,” Remy Cointreau said. “This performance masks continued steady demand for our cognacs and an excellent Mid-Autumn Festival in China.”

The protests began in June over the now-abandoned extradition bill have begun to weigh on retailers, restaurants and tourism-related industries as increasingly violent clashes with police have discouraged people from eating out and visiting the city.