InterContinental Hotels's operating profit rises
InterContinental Hotels Group PLC stated that its continuing operating profit increased by five percent from Ł106m to Ł111m, up 17 percent at constant currency rates as it shared its first half results. (8/16/2007)
Revenues from its continuing operations were up 20 percent from Ł377m to Ł422m. And revenues per available room increased by seven percent over the period.
Andrew Cosslett, Chief Executive of InterContinental Hotels Group PLC said: “The company has had a good first half. Signings continue to run at record levels with almost 55,000 rooms signed into our development pipeline. Strong demand with relatively low levels of new supply is driving up room rates and our brands continue to outperform the market in most of our major regions and geographies. Our outlook for the year is positive.”
The second-quarter earnings fell 61 percent after the company incurred greater tax charges. Net income dropped to Ł64 million from Ł164 million in the same period a year earlier, the company said in a statement. Revenue gained 12 percent to Ł422 million.
In the first half a record 54,246 rooms were signed and 7,430 net rooms added, with a closing pipeline of 187,487 rooms, giving IHG further confidence that it will exceed its target of 50,000-60,000 net organic room additions by the end of 2008 from the 30 June 2005 starting position. 54,246 rooms were signed in the first half; 32,220 in the Americas, 9,324 in EMEA and 12,702 in Asia Pacific.