IHG surpasses projections, post 30 percent rise in half-year profits

InterContinental Hotels Plc has posted a 30 percent rise in half-year profits.

The company shared that it’s continuing operating profit was up 30 percent from £82m to £107m, up 25 percent at constant exchange rates.

IHG reported “forecast-beating profits for the first half on the back of strong growth in revenue per available room and said it may return further funds to shareholders in future”.

Andrew Cosslett,  chief executive, InterContinental Hotels Group PLC said: “This has been a good first half for IHG with excellent trading across each of our three operating regions, and RevPAR out-performance in all our key profit generators. We have made good progress on our asset disposal programme and remain fully focused on increasing the number of hotels that carry our brands. We continue to attract strong interest from owners and partners, both new and existing, and for the first time we now have over 1,000 new hotels in the development pipeline across the world. Current trading is healthy and our outlook for the rest of the year remains positive.”

“We have traded well in July, and we are not seeing any softening in forward bookings. Our outlook for the rest of the year remains positive,” said Cosslett. He said the long-term drivers of the industry remained favorable such as increased Internet use and more leisure time. “People who retire don’t go to the old folks home, they go to the airport,” he reportedly said.

IHG continues to increase its development pipeline, in pursuit of the target of 50,000-60,000 net organic room additions in the period to the end of 2008 from a 30 June 2005 starting position of 537,675. 40,994 rooms were signed in the first half; 28,574 in the Americas, 2,535 in EMEA and 9,885 in Asia Pacific. 130,100 rooms are now in the pipeline, up 21,588 since the start of the year. This represents 1,028 hotels.