Latest news with #ElieMaalouf
Times
5 days ago
- Business
- Times
InterContinental Hotels has rooms to grow as profits rise
The owner of the Holiday Inn chain of hotels has reported a jump in profits as its portfolio surpassed one million rooms for the first time. InterContinental Hotels Group has announced a record number of openings in the first half of its financial year, with more than 31,000 room openings worldwide across its various brands, which also include Crowne Plaza, Six Senses and Candlewood Suites. The FTSE 100 company reported revenues rose by 8 per cent to $2.52 billion for the six months ended June 30, with profit before tax rising 34.1 per cent to $633 million from $472 million. Its shares were up by 586p, or 6.8 per cent, to £92.66 on the back of the announcement. The hotel group said its global revenue per available room — or revpar, a key industry metric — was up 1.8 per cent over the half-year. The group reported that revpar rose by 1.4 per cent in the Americas, with a increase of 4.1 per cent across Europe, Middle East, Asia and Africa. In China, revpar fell 3.2 per cent, which it attributed to a slowdown in the Chinese economy. Yet, Elie Maalouf, chief executive, said the issues in the Chinese market may have 'bottomed out' and were on course for improvement. The hotel group said it faced some 'shorter-term challenges' from geopolitical and economic upheaval, but that 'stable employment markets and robust levels of business activity' would support longer-term growth. Maalouf said: 'Earlier in the year, there was a lot of noise, uncertainty and tension around trade, and the effect that had on financial markets, and the effect that had on confidence. We think that led to a pause in people's decisions about various things including travel. We said in May we thought those things were clearing and that we were past the peak of that uncertainty. 'Trade tensions have turned into trade deals and you've seen financial markets recover back to a record level in the US and many parts of Europe. We think the climate is constructive going forward.' IHG was formed from a demerger of what is now the Mitchells & Butlers pub business in 2003. The group operates a portfolio of 20 brands and is present in more than 100 markets. Analysts at Peel Hunt said the group was 'strong where it counts' and had delivered 'excellent margin progression'. They said: 'Management says that IHG is on track to meet full-year consensus profit and earnings expectations which is, we believe, consistent with pressure on revenue being offset by a strong margin performance. 'Macroeconomic issues in the US continue to be a concern for us and will, in our view, weigh on the share price. However, we believe IHG is demonstrating that payback on years of strategic development can offset macroeconomic headwinds.'
The Independent
6 days ago
- Business
- The Independent
Holiday Inn owner sees profits rise despite pressure from global uncertainty
Holiday Inn owner InterContinental Hotels Group has revealed a slowdown in global room revenue as economic uncertainty due to tariffs and geopolitical tensions takes its toll. The London-listed group reported that revenue per available room (revpar) – a key measure for the hotel industry – pulled back sharply to 0.3% in the second quarter from 3.3% in the previous three months. The US, which is its largest market, slipped into reverse, with revpar down 0.9% in the second quarter, reflecting the impact on 'business and leisure travel in light of macroeconomic developments', according to the group. In the UK, where InterContinental Hotels Group (IHG) has around 355 UK hotels, revpar fell 0.8% over the first half as a whole. But the overall half-year out-turn for global room revenue was better than expected, at 1.8%, helping shares rise nearly 7% in morning trading on Thursday. IHG – which also owns chains such as Crowne Plaza and Regent – reported a 13% rise in operating profits to 604 million US dollars (£452 million) for the six months to June 30. Pre-tax profits jumped to 633 million dollars (£474 million) from 472 million dollars (£353 million) a year ago. Elie Maalouf, chief executive of IHG Hotels & Resorts, said: 'While some shorter term macroeconomic uncertainties remain, many are subsiding, and we are confident in the ongoing successful delivery of our growth.' The group cheered passing the milestone for one million rooms, having opened a record number of hotels in the first half, and said it continues to expand, with a pipeline of more than 2,200 hotels. 'Whilst in some countries geopolitical risk and the economic outlook present shorter-term challenges and uncertainties, overall conditions for the global industry remain positive for continued long-term growth, supported by stable employment markets and robust levels of business activity and economic growth,' the group said. Julie Palmer, a partner at Begbies Traynor, said: 'InterContinental Hotels has published another steady set of results that suggest the business remains on track, even as signs of softening demand emerge in more mature markets like the US. 'The slight dip in US revpar reflects broader economic uncertainty, heightened geopolitical tensions and more cautious consumer spending, but growth across other regions has helped soften the blow and maintain overall momentum.'
Zawya
6 days ago
- Business
- Zawya
Holiday Inn owner IHG's global room revenue slows as cooling demand in US weighs
Holiday Inn owner InterContinental Hotels Group (IHG) on Thursday reported a slowdown in global revenue per available room in the second quarter as economic uncertainties dragged on travel demand in the U.S., its largest market. U.S. President Donald Trump's tariffs on trade partners and rising geopolitical tensions have rattled the travel and hospitality industry as waning consumer confidence threatens to reverse the post-pandemic recovery. "While some shorter-term macroeconomic uncertainties remain, many are subsiding," IHG Chief Executive Elie Maalouf said in a statement, adding that the company remains on track to meet annual profit and earnings expectations. Amid recession concerns and tighter discretionary spending in the U.S., Marriott lowered its full-year revenue and profit guidance on Tuesday. In contrast, Hilton struck a more optimistic tone, raising its profit forecast for 2025 on the back of a stronger-than-expected recovery in U.S. travel demand. Despite trade tensions and elevated inflation that dampened spending among cost-conscious consumers, travel companies are now pointing to signs of a rebound in sentiment and bookings in July. The hotel operator said U.S. revenue per available room (RevPAR) fell 0.9% for the three months ended June 30, compared to 3.5% growth in the first quarter. Sluggish domestic demand in its Greater China market continued with RevPAR falling 3% in the quarter. Global growth on the same measure for the second quarter came in at 0.3%, compared to 3.2% growth a year prior. (Reporting by Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich and Lincoln Feast.)
Reuters
6 days ago
- Business
- Reuters
Holiday Inn owner IHG's global room revenue slows as cooling demand in US weighs
Aug 7 (Reuters) - Holiday Inn owner InterContinental Hotels Group (IHG) (IHG.L), opens new tab on Thursday reported a slowdown in global revenue per available room in the second quarter as economic uncertainties dragged on travel demand in the U.S., its largest market. U.S. President Donald Trump's tariffs on trade partners and rising geopolitical tensions have rattled the travel and hospitality industry as waning consumer confidence threatens to reverse the post-pandemic recovery. "While some shorter-term macroeconomic uncertainties remain, many are subsiding," IHG Chief Executive Elie Maalouf said in a statement, adding that the company remains on track to meet annual profit and earnings expectations. Amid recession concerns and tighter discretionary spending in the U.S., Marriott (MAR.O), opens new tab lowered its full-year revenue and profit guidance on Tuesday. In contrast, Hilton (HLT.N), opens new tab struck a more optimistic tone, raising its profit forecast for 2025 on the back of a stronger-than-expected recovery in U.S. travel demand. Despite trade tensions and elevated inflation that dampened spending among cost-conscious consumers, travel companies are now pointing to signs of a rebound in sentiment and bookings in July. The hotel operator said U.S. revenue per available room (RevPAR) fell 0.9% for the three months ended June 30, compared to 3.5% growth in the first quarter. Sluggish domestic demand in its Greater China market continued with RevPAR falling 3% in the quarter. Global growth on the same measure for the second quarter came in at 0.3%, compared to 3.2% growth a year prior.
Yahoo
6 days ago
- Business
- Yahoo
Holiday Inn owner IHG's US room revenue falls in second quarter
(Reuters) - Holiday Inn owner InterContinental Hotels Group reported a fall in U.S. revenue per available room (RevPAR) in the second quarter on Thursday, as economic uncertainties dent consumer spending in its largest market. U.S. President Donald Trump's tariffs on trade partners and rising geopolitical tensions have rattled the travel and hospitality industry as waning consumer confidence threaten to reverse post-pandemic recovery. "While some shorter-term macro-economic uncertainties remain, many are subsiding," IHG CEO Elie Maalouf said in a statement, adding that the company remains on track to meet annual profit and earnings expectations. The hotel operator said U.S. RevPAR fell 0.9% for the three months ended June 30, compared to 3.5% growth in the first quarter. Global RevPAR growth for the first half of the year came at 1.8%, compared to 3% a year prior. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
