IHG: U.S. ‘Broadly Flat’, China a Drag – But Keeps Profit Target
Photo Credit: InterContinental Seattle Bellevue by IHG. IHG Hotels & Resorts
Skift Take
IHG is seeing the same soft trends as other hotel groups, but it's holding onto its profit target.
InterContinental Hotels Group (IHG) reported mixed first-quarter results Thursday, with global room revenue up over 3% but signs of weakening demand in some key markets.
U.S. bookings flattened in recent weeks while those in China fell for the second straight quarter. London bookings were flat year-over-year.
Marriott and Hilton recently trimmed their forecasts, but IHG said it still expected to meet its $1.25 billion profit target – it cited cost discipline and new revenue streams from credit card partnerships.
Here’s everything we learned from IHG’s earnings report:
1) Momentum is fading in the U.S.: Revenue per available room (RevPAR) rose 3.5% in the Americas, but performance weakened as the quarter progressed.
“When we take the last 8 weeks in aggregate, RevPAR has been broadly flat,” said CFO Michael Glover.
2)
