IHG sees strong growth in Americas, China – MoneyWeek

Meanwhile,GroupRevPARgrewby7。

0%,drivenbystronggrowthintheAmericas(up7。

7%)andGreaterChina(11。

9%)。

IncreasesinEuropeandAsia,MiddleEastandAfrica(AMEA)weremoresubdued(up2。

6%and6。

9%,respectively)。

Globalratesincreasedby3。

3%onaveragewhileoccupancygrewby2。

1percentagepoints。

Meanwhile,thetotalsystemsizeof661,159roomswas1%higheryear-on-year。

Wehavedeliveredstrongperformanceinthequarterwithglobalrevenueperavailableroomup7%andcontinuedoutperformanceintheUSandGreaterChina。

Thestrengthofourbrandsandsystems,togetherwithourscaleandthecloseworkingrelationshipswehavewithourhotelowners,continuetounderpinoursuccess,saidChiefExecutiveRichardSolomons。

RevPARgrowtheasedto6。

1%inAprildespiterategrowthpickingupto4。

2%。

RevPARgrowthpickedupinbothEuropeandAMEAbutfellslowedintheAmericasandChina。

Pre-taxprofitimprovedfrom$94mto$106minthefirstquarter,helpedbyhigherrevenueandfallingadministrativeexpenses。

Theglobaleconomicbackdrop,particularlyinEurope,isstillchallenging,buttheconsiderablestrengthsofourbusinessincludingourresilientmodelandstrongbalancesheetgiveusconfidencethatwewillcontinuetodrivehighqualitygrowth,Solomonssaid。

Grosscapitalexpenditurewasjust$21minthefirstquarter,comparedwiththefull-yearguidanceof$150mofmaintenanceand$100-200mofgrowthcapitalexpenditure。

BC

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