Investing.com — InterContinental Inns Group (LON:) reported a 1.5% rise in income per accessible room (RevPAR) for the third quarter, pushed largely by sturdy demand throughout the EMEA area.
Nevertheless, the outcomes had been tempered by sluggish circumstances within the U.S. market and continued challenges in China, the corporate stated in a press release.
The EMEA area emerged as a vivid spot, posting a 4.9% enhance in RevPAR in the course of the quarter. This progress displays rising enterprise journey and group bookings, which stay resilient throughout the area.
Key contributors included Continental Europe and the East Asia & Pacific sub-regions, the place RevPAR progress reached 7.1% and 6.5% respectively.
In distinction, efficiency within the Center East declined barely by 3.2%, exhibiting some regional variability in demand.
Within the Americas, IHG’s efficiency was extra subdued, with RevPAR growing simply 1.7%. The U.S. market—the place the corporate’s Vacation Inn and Crowne Plaza manufacturers are staples—confirmed weaker momentum, reporting solely a 1.2% rise.
Group bookings remained a supply of energy, with group-related room income rising 7%, however leisure journey seeing a slight 1% decline, reflecting weaker shopper sentiment.
Whereas there was some enlargement throughout the Americas with new openings, progress remained modest in comparison with different areas.
China stays a difficult marketplace for IHG, with RevPAR down 10.3% year-over-year, impacted by unfavorable comparisons to the identical interval final 12 months, when home journey surged.
The area additionally skilled disruptions from typhoons and shifts in public holidays, exacerbating the downturn.
Regardless of this quarter’s setbacks, IHG stays optimistic about long-term prospects, noting that 2024 is on observe to be one of many firm’s greatest years for brand spanking new resort openings and signings in China.