Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
InterContinental sees RevPAR growth accelerate in Q2
(Sharecast News) - Crowne Plaze, Regent and Holiday Inn owner InterContinental saw its bottom line shrink by 10% in the first half due to the planned reduction of its so-called System Fund surplus, though underlying profits improved by 12% due to solid margin improvements and an acceleration in RevPAR growth in the second quarter. Reportable revenues rose 7% year-on-year to $1.11bn in the six months to 30 June, while gross revenues - which include revenues generated by franchised, managed and owned/leased hotels - improved by 6% to $16.1bn.
The company said that annual RevPAR (or revenue per available room) growth was 3.2% in the second quarter, picking up from 2.6% in the first, helped by improving conditions in the US where RevPAR growth turned positive at 3.3% (Q1: -0.3%). That helped to offset a deterioration in trading in Greater China where second-quarter RevPAR declined 7.0%, compared with 2.5% growth three months earlier.
InterContinental ended the half with a global estate of 955,000 rooms across 6,430 hotels, opening 18,000 new rooms across 126 new hotels during the period.
Operating profit from reportable segments improved to $535m, up from $479m the year before, with the fee margin rising 1.8 percentage points to 60.6%.
However, headline operating profit totalled $525m for the half, down from $584m the year before, which includes a System Fund and reimbursables loss of $10m, compared with a profit of $87m previously
IHG announced in May that it would make changes to its System Fund arrangements to improve "hotel owners economics", which reduced the fees that owners pay into the Fund and reimbursed owners when guests use their loyalty points.
"With thanks to our teams around the world, we are making great progress on the delivery of our strategic priorities and the clear framework to drive future value creation that we set out in February," said chief executive Elie Maalouf.
"RevPAR growth accelerated in the latest quarter, reflecting a strong US rebound in Q2 and the breadth of our global footprint, and development activity continues to increase."
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
