UK-based InterContinental Hotels Group has reported strong results for the first quarter of 2012 and is upbeat for the rest of the year, as it expects a boost in growth from its sponsorship of the 2012 London Olympics.
Richard Solomons, the chief executive officer of IHG, said in a statement, ‘Originally, two-thirds of rooms in 35 of our London hotels went to LOCOG (London Organising Committee of the Olympic Games and Paralympic Games) as part of our support for the Games. LOCOG has just given us 20 per cent of those rooms back and they are back on general sale. Demand is high.’
The company has announced a 5 percent increase in profits in the 2012 first quarter, due to a robust travel economy in the US and Greater China. The overall growth has also been helped by its hotel properties in France, Germany and Britain, in spite of the economic turmoil in Europe. Earnings from the 2012 first quarter totalled £73 million, on revenues of £253 million.
Commenting on the brand’s results, Solomons said, ‘We have delivered strong performance in the quarter with global revenue per available room (RevPAR) up 7 percent and continued out-performance in the US and Greater China. The strength of our brands and systems, together with our scale and the close working relationships we have with our hotel owners, continue to underpin our success.’
The company currently operates around 4,500 hotels globally, offering more than 660,000 guest rooms. In the UK, the company has six hotels in the pipeline, including the InterContinental London Westminster, five Hotel Indigo hotels, and Holiday Inn and Staybridge Suites hotels.