InterContinental Hotels Group has warned of an “uncertain” economic environment despite recording a 33% jump in third quarter profits.
The world’s laregest hotel group saw operating profit rise to $153 million for the three months to September 30.
A $2 million hit in operating profits in the quarter came as a result of events in Middle East, Japan and New Zealand. The full year impact is estimated to be around $15 million.
Political unrest resulted in “significant declines” in revenue per available room (revPAR) in Egypt, where the group has 10 hotels, and Bahrain, where it has two properties.
Global revPAR was up by 6.4%. Higher RevPAR growth growth was achieved in China and the US due to the relaunch of the Holiday Inn brand.
Chief executive Richard Solomans said: “We are now rolling out a multi-year programme to reposition and drive stronger performance from our Crowne Plaza brand.
“We are focused on supporting our owners by driving demand to their hotels through the most profitable channels.
“Our innovations in this area continue to lead the industry and we recently introduced our Best Price Guarantee, designed to drive more guests to book through our direct websites.
“We have established firm foundations for high quality growth which we will deliver through driving market share, growing margins and investing behind the growth of our brands and our people.
“The economic environment continues to be uncertain, but we remain confident in our future due to our resilient business model, robust balance sheet and powerful brand portfolio, combined with low medium term supply growth in many markets.”