The owner of Holiday Inn, InterContinental Hotels Group (IHG), is celebrating a rise in sales and strong summer bookings as travel demand returns to pre-pandemic levels. The hotel giant expects to end 2023 with a "very strong" financial performance.
IHG reported an increase in revenue per available room (RevPAR) over the third quarter, driven by growth in Greater China where room revenues soared by 43.2%.
The occupancy rate across the group was 72% for the third quarter, showing a "near-complete return to pre-Covid levels of demand".
Whitbread has announced plans to open more hotel rooms to capitalise on market opportunities. Meanwhile, IHG revealed it opened nearly 8,000 rooms across 50 hotels over the quarter and added 17,000 new rooms to its pipeline of openings.
However, the company's chief executive admitted to some "short-term, financing challenges" which he said was limiting its plans for new hotels.
Hotel chains' earnings updates set to indicate UK travel and hospitality demand
Elie Maalouf, IHG's chief executive, stated: "As IHG powers forward to provide industry-leading advantages for our guests and hotels owners across our brand portfolio, loyalty programme and entire enterprise platform, we expect to close out 2023 with very strong financial performance."
He also added: "Looking further ahead, whilst there are macro-economic uncertainties and some short-term financing challenges holding back new hotel development, I am excited about the future for IHG and the attractive, long-term demand drivers for our markets."
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