Published: 18 Feb 2009：InterContinental Hotels Group´s (IHG) revenue from continuing operations increased by 4.7 percent to $1,854m last year.
Continuing operating profit before exceptional items increased by 12.9 percent to $535m during the 12 months ended 31 December 2008.
The growth in revenues was driven by RevPAR gains in EMEA and Asia Pacific, continued expansion in China and the Middle East and the first full year of trading at the re-opened InterContinental London Park Lane.
Growth was achieved in all regions in the first three quarters of the year however, the worldwide financial crisis had a significant impact on results in the final quarter. In the fourth quarter, RevPAR declined sharply across the Group falling by 6.5 percent globally, although IHG´s brands continued to outperform their segments in all key markets. Strong revenue conversion led to a 2.1 percentage point increase in the continuing operating profit margin to 28.9 percent.
Andrew Cosslett, chief executive, said trading conditions remained tough and the outlook was uncertain.
"It has been clear for some time that 2009 will be a challenging year and we have taken action to prepare the business, including strict management of cash and a significant reduction in costs," he said.
According to IHG, revenue delivery to hotel owners through reservation channels and loyalty programmes continued to improve:
• $7.6bn of rooms revenue, 48 percent of total rooms revenue, was booked through IHG´s channels, up 10 percent.
• $5.9bn of rooms revenue, 37 percent of total rooms revenue, was booked by Priority Club Rewards members, up 13 percent.
• Priority Club Rewards members of 42m, up from 37m at the end of 2007.
• Internet revenues increased from 17 percent to 20 percent of total rooms revenue, 86 percent from IHG´s own websites.