Intercontinental Hotels Group hopes to boost growth
Tuesday, August 10, 2021
The owner of Holiday Inn and Crowne Plaza Hotel Group disclosed plans for the FTSE 100 company on Tuesday as it reported a return to a profit.
"Trading improved significantly during the first half of 2021, with travel demand returning strongly as vaccines roll out, restrictions ease, and economic activity rebuilds," CEO Keith Barr said.
IHG hopes to boost growth by recruiting independent hoteliers to sign up from around the world for its new luxury and lifestyle range. Further details will be disclosed in the coming weeks.
Tellingly, revenues per available bedroom - a key measure of hotel space, was 20 percent higher than it was at the same time in 2020.
The firm has been actively recruiting as it confronts similar staffing challenges to the rest of Recreation.
Despite some improvements, the FTSE 100 company said the pandemic continued to affect its financial performance in the first half of the year as state travel limits, put in place for 2020, were maintained in different ways by most markets.
In a note, titled "ahead in the marathon, pull up for a breather" Douglas Jack of Peel Hunt said "despite" tentative sign of recovery "IHG's share price" has "preceded events."
IHG also opened 132 hotels in the first half of the year, with 203 signing, compared with 91 in the same period a year earlier.