InterContinental Hotels Group (IHG) has released its financial results for the third quarter of 2023, showcasing impressive growth and a robust return to pre-pandemic levels.
The group’s Revenue Per Available Room (RevPAR) saw a 10.5% increase compared to 2022 and a 12.8% rise when compared to 2019 figures. Regionally, the Americas experienced a RevPAR growth of 4.1% against 2022 and a notable 13.8% against 2019. The EMEAA region surged with a 15.9% increase from 2022 and 17.5% from 2019. Greater China stood out with a staggering 43.2% growth from 2022 and a 9.3% increase from 2019.
Elie Maalouf, Chief Executive Officer of IHG Hotels & Resorts, expressed gratitude to the teams for supporting another strong trading period. He highlighted that this quarter marked the fifth consecutive quarter of improvement, surpassing pre-pandemic highs. Maalouf also emphasized the near-complete return to pre-Covid levels of demand, with a group-wide occupancy rate of 72%.
In terms of expansion, IHG opened nearly 8,000 rooms across 50 hotels in Q3 and added 17,000 rooms to its pipeline across 123 properties. The year-to-date signings have increased by 16%. Maalouf also mentioned the upcoming midscale conversion brand, Garner, which became franchise-ready in September, indicating further growth potential.
Regionally, the Americas saw a growth of 3.9% in their gross system size year-over-year (YOY) with 2,000 rooms opened in Q3. The EMEAA region experienced a 10.0% YOY growth in its gross system size, opening 2,000 rooms. Greater China, recovering from Covid-related restrictions, reported the highest quarterly signings performance since 2021, with a gross system size growth of 8.1% YOY.
In a significant move to reward shareholders, IHG announced that it is on track to return $1.0bn in 2023 through share buybacks and dividend payments. The company’s 2023 share buyback program, along with ordinary dividend payments, will have returned an amount equivalent to 10% of IHG’s market capitalization at the start of 2023.
Maalouf concluded with an optimistic outlook, acknowledging macro-economic uncertainties but expressing confidence in IHG’s business model, scale, and strategic priorities. He emphasized the company’s commitment to sustainable, profitable growth and expressed excitement about the future prospects for IHG.
