Key Takeaways
InterContinental Hotels Group (NYSE: IHG) on Thursday reported first-quarter revenue per available room growth of 4.4 percent, a figure that exceeded market expectations and pointed to continued resilience in global travel demand.
"Our diverse EMEAA region also performed well despite challenges from the conflict in the Middle East, where we continue to do all we can to support our guests, teams and owners," Chief Executive Elie Maalouf said in a statement.
The growth was underpinned by a 1.5 percentage point increase in occupancy and a 2.0 percent rise in the average daily rate, according to the company's filing. Performance was strong across all key markets, with the Americas region growing 3.6 percent, Europe, Middle East, Africa & Asia (EMEAA) up 5.6 percent, and Greater China posting a 5.7 percent gain.
While the hotel operator noted a significant downturn in the Middle East for April, with RevPAR in the sub-region falling 50 percent due to the ongoing conflict, it stated this weakness was being counteracted by accelerating growth in the Americas and improving booking trends for the EMEAA region in May and June. The company's net system size expanded by 5.0 percent year-over-year.
The results suggest that demand from affluent and business travelers remains robust, offsetting both geopolitical headwinds and inflationary pressures on budget-conscious consumers. IHG remains confident in achieving the full-year consensus forecast for RevPAR growth of 2.2 percent and adjusted earnings per share of 566 cents.
This article is for informational purposes only and does not constitute investment advice.
