InterCon revenue growth slows in October
London, November 9, 2011
InterContinental Hotels Group said revenue growth had slowed in October as unrest in the Middle East impacted trading, overshadowing third quarter profit which was at the top end of expectations.
Growth in revenue per available room (RevPAR), a key industry measure, slowed to 4.7 per cent in October from 6.4 percent in the third quarter, said the World No.1 hotelier on Tuesday.
InterContinental, home to the Crowne Plaza as well as Holiday Inn and InterContinental brands, said political unrest had led to a significant decline in revenue at its 10 hotels in Egypt and two hotels in Bahrain.
'What we saw in October was a slowdown in our reported numbers in Europe but there are reasons behind that. In the back end of the month and into November the pace looks quite good,' chief executive Richard Solomons told reporters on a conference call.
InterContinental said $2 million had been knocked off its operating profit in the third quarter as a result of the impact on bookings from the Middle East unrest and the earthquake and tsunami in Japan earlier this year.
It expects the full year impact to be $15 million, in line with previous guidance.
Shares in InterContinental, which have lost over a quarter of their value since February, were down 3.7 per cent to 1,054 pence at 1120 GMT, valuing the business at 3.1 billion pounds.
InterContinental, which runs over 4,400 hotels, posted a 33 per cent rise in third-quarter operating profit to $153 million, driven by strong growth in China and the United States.
Market expectations had ranged between $138 million and $153 million, according to a company-supplied poll of nine analysts.-Reuters