Third-quarter revenue shows positive growth
InterContinental Hotels Group (IHG) has reported impressive year-on-year growth in revenue per available room during the third quarter. The company revealed that for this period, revenue per available room increased by 10.5% compared to the same quarter last year. In addition, it rose by an impressive 12.8% when compared to the pre-pandemic levels of 2019.
Sequential improvement for five consecutive quarters
IHG highlighted that the third quarter marked the fifth consecutive quarter of sequential improvement that surpassed the levels seen before the pandemic. This is a strong indicator of the healthy state of travel demand, signaling a robust recovery for the hotel industry as a whole.
Rising rates drive revenue growth
The average daily rate for the period showed significant growth, with a 4.1% increase compared to 2022 and a substantial 14.8% increase compared to 2019. This highlights the positive trend in rates, which has contributed to IHG’s overall revenue growth during this period.
Occupancy levels rebounding
While occupancy levels were 4.1 percentage points higher than in 2022, there was a slight decline of 1.3 percentage points when compared to the same period in 2019. However, IHG reassured investors that group-wide occupancy was only one percentage point behind 2019, confirming a near-complete return to pre-Covid-19 levels of demand. This indicates strong recovery and customer confidence in IHG’s offerings.
Future plans and outlook
IHG expressed confidence in its business model, scale, and strategic priorities for capturing sustainable and profitable growth. The company remains on track to return $1 billion to shareholders in 2023 through share buybacks and dividend payments, further strengthening its commitment to delivering value to investors.
In conclusion, IHG’s third-quarter results showcase a resilient and thriving hotel industry. With rising revenue per available room, strong rates, and consistent improvement in occupancy levels, IHG is well-positioned for continued success in the future.
