18 October 2019

2019 Third Quarter Trading Update

Highlights

  • 4.7% YOY net system size growth to 865k rooms; on track to exceed 5% for full year 2019
  • 13k rooms opened, taking the total to 42k rooms YTD
  • Signed 25k rooms in the quarter, 73k rooms YTD 
  • Group Q3 comparable RevPAR1 down 0.8%, flat for Q3 YTD

Keith Barr, Chief Executive Officer, InterContinental Hotels Group PLC, said:Our continued strategic focus on driving net rooms growth enabled us to deliver a 4.7% increase in net system size despite a strong comparable. This will accelerate in the coming quarter and we are on track to deliver industry leading net system growth over the medium term. Third quarter Group RevPAR was down 0.8%, impacted by tougher trading conditions in the US and China, and ongoing unrest in the Hong Kong SAR. 

We have made further progress executing against our strategic initiatives, with the first franchise applications already received for Atwell Suites, our new upper midscale brand which was launched for franchise sales at the end of the quarter. We also strengthened our loyalty offer through an exclusive partnership with world-renowned travel club and boutique hotel specialists, Mr & Mrs Smith. This will more than double our luxury and boutique offering to IHG Rewards Club members in new and iconic locations and enhance the loyalty member value proposition. 

Despite the weaker RevPAR environment, and the challenges some of our markets are currently experiencing, we remain confident in our financial outcome for the rest of the year. Our broad geographical spread combined with the resilience of our asset-light, cash generative model, our disciplined approach to cost management and the continued execution against our strategic initiatives, positions us well for the future.”

1RevPAR growth is at constant exchange rates (CER) unless otherwise stated

Download the full announcement of our 2019 Third Quarter Trading Update PDF 158Kb

Ends

About IHG®

IHG ® (InterContinental Hotels Group) [LON:IHG, NYSE:IHG (ADRs)] is a global organisation with a broad portfolio of hotel brands, including Six Senses Hotels Resorts SpasRegent Hotels & ResortsInterContinental® Hotels & ResortsKimpton® Hotels & RestaurantsHotel Indigo®EVEN Hotels ®HUALUXE® Hotels and ResortsCrowne Plaza® Hotels & Resortsvoco™Holiday Inn® Hotels & ResortsHoliday Inn Express®Holiday Inn Club Vacations®avid™ hotelsStaybridge Suites®Atwell Suites and Candlewood Suites®.

 

IHG franchises, leases, manages or owns nearly 5,800 hotels and approximately 865,000 guest rooms in more than 100 countries, with over 1,900 hotels in its development pipeline. IHG also manages IHG® Rewards Club, our global loyalty programme, which has more than 100 million enrolled members.

 

InterContinental Hotels Group PLC is the Group’s holding company and is incorporated in Great Britain and registered in England and Wales. More than 400,000 people work across IHG's hotels and corporate offices globally.

 

Visit www.ihg.com for hotel information and reservations and www.ihgrewardsclub.com for more on IHG Rewards Club. For our latest news, visit: tdzd88.com/media and follow us on social media at: www.twitter.com/ihgcorporatewww.facebook.com/ihgcorporate and www.linkedin.com/company/intercontinental-hotels-group

 

Contact details

For further information, please contact: 

Investor Relations

Heather Wood; Sonya Ghobrial:
+44 (0)1895 512 176
+44 (0)7527 419 431

Media Relations

Yasmin Diamond; Mark Debenham:
+44 (0)1895 512 097
+44 (0)7527 424 046

Conference call for Analysts and Shareholders

A conference call with Paul Edgecliffe-Johnson, Chief Financial Officer will commence at 9:00am London time on 18th October and can be accessed at http://tdzd88.com/en/investors/results-and-presentations. There will be an opportunity to ask questions:

UK   +44 (0) 203 936 2999
US  +1 646 664 1960
All other locations  +44 (0) 203 936 2999
Participant Access Code  363 921

A recording of the conference call will be available for 7 days from 11.30am London time; details are below:
UK  +44 (0) 203 936 3001 
US +1 845 709 8569
All other locations  +44 (0)203 936 3001
Participant Access Code 075 975