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InterContinental reports strong Olympics trading

Stronger trading during the London Olympics helped offset a weaker performance before and after the games, InterContinental Hotels reported today.

The world’s largest hotel group saw revenue per available room in the UK rose by 3.9% in the three months to September.

The company confirmed that the InterContinental London Park Lane is the next major property being considered for disposal with a “key milestone” being the opening of the InterContinental London Westminster later this month.

The group saw overall operating profit for the quarter rise by 9% to $167 million over the same period last year, based on revenue up by 1% to $473 million.

Chief executive Richard Solomons said: “We have delivered a solid set of results in the quarter with RevPAR growth across all regions and outperformance in key markets such as the US and Greater China.

“Our preferred brands have driven good underlying revenue growth despite a number of industry wide issues such as the timing of holidays, slowing economic growth in certain markets and the political leadership change in China.

“We continue to build a strong foundation for future growth, with a good pace of signings and openings, and we are on track to meet our full year net system growth guidance.”

He added: “Our new brands are gaining traction, with the first signing for EVEN Hotels in New York City in October and 12 signings for HUALUXE Hotels & Resorts year to date.

“The global economic environment remains challenging. However, our forward bookings remain encouraging and we are confident that IHG is well positioned to continue to outperform based on the considerable strengths of the business and our focused strategy for high quality growth.”

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