InterContinental Hotels Group signed the equivalent of a record two hotels a day in the first half of the year.
The expansion by the parent company of 19 brands including Holiday Inn and Crowne Plaza included an agreement with German group Novum Hospitality.
IHG reported a 12% year-on-year rise in operating profit in the first half of 2024 to $535 million based on a 7% increase in revenue to $1.1 billion.
The group comprised of 955,000 rooms at 6,430 hotels by the end of June, weighted 66% across midscale segments and 34% across upscale and luxury.
IHG reported a global pipeline of 330,000 rooms in 2,225 hotels, representing 35% of the current system size and growth of 15% year-on-year.
The IHG mobile app and other mobile channels now account for 58% of all digital bookings, “and the rapid growth across IHG’s direct digital booking channels means over 25% of total room revenue across the whole enterprise system are generated by these digital channels”.
App downloads increased by more than 30% year-on-year and revenue increased by 20%.
IHG has also partnered with Google to pilot a conversational GenAI-powered experience to help users in their app-based trip planning process.
“The percentage of room revenue booked through IHG-managed channels and sources has now reached 80% for the first time, delivering IHG hotel owners with higher-value revenue at a lower cost of acquisition
and underlining the attractiveness and proven success of our enterprise system,” the company added.
Chief executive Elie Maalouf said that growth in the key revenue per available room (revpar) metric accelerated in the last quarter “reflecting a strong US rebound and the breadth of our global footprint”.
“We celebrated 126 hotel openings in the half and the signing of a record-breaking 384 properties, equivalent to more than two a day,” he said.
“These included the first six openings and 118 signings from the Novum Hospitality agreement, which doubles our presence in the important and attractive German market.
“After growth of 7% in Q1, a very busy Q2 saw 23% more signings year-on-year or a more than doubling when including Novum, and this keeps us on track for net system size growth expectations.”
The group continues to grow its brands, drive loyalty contribution, rolling out new hotel technology and increasing our ancillary fee streams, Maalouf added.
“Our cash generation and strong balance sheet continue to support further investment in growth, and we are confident in capitalising on our scale, leading positions and the attractive, long-term demand drivers for our markets.”
Philip Baker, head of the hotels group at international law firm, Gowling WLG, said in response to the interim results: “Travel demand has truly returned following the pandemic and in light of the cost-of-living crisis to the benefit of IHG as consumers have been making the most of the Easter and summer holiday periods.
“The diversity in its brand portfolio has allowed the company to increase its margins and continue to expand globally by appealing to a mixed customer base.
“Despite the recent economic challenges, IHG has demonstrated the advantage of having recognised and trusted brands, that even in times of difficulty, are the ones consumers will still seek.
“Looking ahead, shareholders will now want to focus attentions on capitalising on the return of corporate travel as it gets back to business as usual, having lagged behind consumer travel so far.”