15/11/2010 - IHG reports room rate revenue rise
InterContinental Hotel Group (IHG) said that recovery in the sector was picking up pace, after reporting growth in room rates for the first time in almost two years.
The global hotel group witnessed an increase in sales and demand all over the world thanks to the comeback of business travellers, which allowed it to raise room rates.
According to IHG, business travel saw a decline after the economic crisis and during the recession, but is now starting to return.
IHG reported a 1.8% average increase in rates across the group, posting a 5% growth in revenue, which stood at $421 million (£261 million) for the quarter ending September 30. Operating profits however, decreased by 7% to $115 million (£71.8 million).
The giant, which is the largest hotel group in the world in terms of rooms, franchises or leases the majority of its 4,500 hotels in 100 countries.
It announced that it plans to open up 3,000 jobs in the UK during the next four years.
Andrew Cosslett, chief executive of IHG, said: "The quarter saw a return to rate growth for the first time since early 2009, a clear sign that the recovery is gathering pace."
Copyright © Press Association 2010
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