InterContinental Hotels Group has reported soaring profits and revenues for the first half of 2022 thanks to continued recovery in leisure and business travel.
The Holiday Inn and Crowne Plaza parent said its group operating profit for the six-month period ended June 30 increased to $361 million, compared with $138 million last year. Total group revenue rose 52% year-on-year to $1.8 billion.
The company also announced a share buyback programme, to buy shares worth up to $500 million “in line with its strategy to return surplus capital to shareholders”.
Chief executive Keith Barr said: “We saw continued strong trading in the first half of 2022 with increased demand for travel in most of our markets.
“This brought group revpar (revenue per available room) very close to pre-pandemic levels in the second quarter.
“Alongside leisure stays, the return of business and group travel demand continued to build over the period, and our hotels are seeing increased pricing power due to the strength of IHG’s brands, loyalty programme and technology platform.”
He added: “The recovery in demand and pricing led to group profit more than doubling versus 2021, with profitability in the Americas now ahead of 2019.
“The EMEAA region also saw excellent improvement in performance.
“Whilst Greater China had a tough period as Covid-related travel restrictions were tightened, we have since seen a strong recovery in the most recent months, although risk of further volatility in trading in the region still remains.”
He said the economic outlook faces “uncertainties” because of inflation but added: “We remain confident in our business model and the attractive industry fundamentals that will drive long-term sustainable growth.”
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