Mobile booking boosts IHG profits

Mobile booking boosts IHG profits

InterContinental Hotels Group, the largest hotel company in the world, today reported a 23% rise in half year operating profits to $269 million with the help of improved mobile booking policies

The company behind brands such as Holiday Inn and Crowne Plaza, said events in the Middle East, Japan and New Zealand hit profits by $7 million in the first six months of the year.

The impact of political unrest in the Middle East and the earthquakes in Japan and New Zealand is expected to cost the company up to $20 million by the end of the year.

IHG chief executive Richard Solomans said: “Our industry leading developments in mobile booking sites and apps are now generated $10 million of revenue a month and we expect this to grow quickly as consumer booking preferences evolve.”

The company reported a 9% rise in gross revenue from hotels across its global portfolio of almost 4,500 hotels to $9.6 billion over the same six months last year.

Global revenue per available room (RevPAR) was up by 6.7% as the company added 122 hotels and removed 97.

Overall growth is expected to be at a “modest” rate of 3%-5% in the medium term from 2012, the group said.

Solomans said: “Whilst we continue to monitor the uncertain economic outlook, we look forward with confidence in the currently favourable hotel trading environment of record demand and low supply in many markets.”

He said: “Our priorities are to develop our brands, invest in our people and strengthen our revenue delivery systems, thereby creating firmer foundations for growth.”


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