Holiday Inn owner bounces back from 2020 losses as profits reach $48m

An international hospitality group has announced that its operating profits have bounced back across the first half of the year as it recovers from last year’s losses.

Intercontinental Hotels Group, which owns Holiday Inn and Crowne Plaza, reported operating profits of $48m for the first six months of the year, up by 122.9 per cent on last year’s loss of $210m for the same period.

The company, based in Buckinghamshire, said that it expects to further build on these results, predicting a return to pre-pandemic levels.

It added that its pipeline represents more than 30 per cent of its current system size, and that it is aiming for an increase in net room growth.

Keith Barr, CEO of IHG, commented: “Trading improved significantly during the first half of 2021, with travel demand returning strongly as vaccines roll out, restrictions ease, and economic activity rebuilds.

“As more development activity returns to the industry, the strength of IHG’s brand portfolio and the power of our scale, systems and platforms for owners is being clearly recognised.

“We opened 132 hotels in the half and signed 203, both sizeable increases on last year. Our focus on the quality of our estate remains extremely high, and we’re making rapid progress with the review of our Holiday Inn and Crowne Plaza portfolios to ensure the consistency of these leading brands and that they are well positioned for future growth.

“With the actions we are taking, and a pipeline that represents more than 30 per cent of our current system size, we expect to return quickly to an industry-leading level of net rooms growth.

“The actions we have taken during the last 18 months position us well to exceed our pre-pandemic level of growth and profitability.

“While there is a risk of trading volatility in the balance of the year, and discretionary business trips, group bookings and international travel will take time to fully recover, we are confident in the strength of IHG’s future prospects.”

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