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Hotelier IHG says hurricanes hit revenue growth in Americas
[DENHAM, UK] InterContinental Hotels Group (IHG) reported a slowdown in revenues in its Americas business on Friday, due to the affects of Hurricanes Harvey and Irma on the regional business.
Revenue per available room (RevPAR), a key industry measure, at its Americas business rose 0.8 per cent in the three months ended Sept 30, compared with a 1.1 per cent rise in the second quarter and 1.9 per cent a year earlier.
In the United States, the largest market for the company in terms of room numbers, RevPAR was up 0.4 per cent, which compared with a rise of 1.4 per cent a year ago.
"Hurricanes Harvey and Irma had a mixed impact; displacement activity together with the relief and reconstruction efforts benefitted our franchise business. But performance across the managed estate was negatively impacted by the cancellation of group bookings at some hotels," the company said.
The company, which runs over 5,000 hotels in about 100 countries under brands such as Crowne Plaza, Holiday Inn and InterContinental, said RevPAR in Mexico was flat due to the earthquake in Mexico City.
However, global comparable RevPAR in the third quarter was up 2.3 per cent, compared with a growth of 1.3 per cent last year, helped by recovery in its European business.
"Markets previously impacted by terrorist attacks grew strongly, including RevPAR growth of 6 per cent in France, and double-digit growth in Belgium and Turkey," IHG said.
Separately, IHG said Elie Maalouf, it's chief executive for the Americas, would join the main board as an executive director with effect from Jan 1, 2018.