Holiday Inn owner sees sales hit by Hong Kong protests

InterContinental reported a particular slump in its Greater China market. Picture: Contributed
InterContinental reported a particular slump in its Greater China market. Picture: Contributed
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Holiday Inn owner InterContinental Hotels saw third-quarter sales slip as it was hit by political unrest in Hong Kong.

The hotel group, which also runs the Crowne Plaza and Hotel Indigo brands, said revenue per available room dipped by 0.8 per cent in the three months to September.

InterContinental Hotels also runs the Crowne Plaza and Hotel Indigo brands. Picture: Contributed

InterContinental Hotels also runs the Crowne Plaza and Hotel Indigo brands. Picture: Contributed

InterContinental reported a particular slump in its Greater China market, as revenue per room in Hong Kong dived 36 per cent due to the recent political unrest.

However, the company said it remained “confident” for the rest of the year despite the “weaker” sales environment.

InterContinental said it also benefited from expanding its number of rooms, as it opened 13,000 new rooms across its portfolio during the quarter.

In the UK, the revenue per room increased by 1 per cent on the back of a 3 per cent rise in London, driven by growing international demand amid weakness in the value of the pound.

Continental Europe also delivered 1 per cent growth, although it saw a 7 per cent decline in Germany for the period.

Chief executive Keith Barr said: “Despite the weaker revenue per available room environment, and the challenges some of our markets are currently experiencing, we remain confident in our financial outcome for the rest of the year.

“Our broad geographical spread combined with the resilience of our asset-light, cash generative model, our disciplined approach to cost management and the continued execution against our strategic initiatives positions us well for the future.”

Russ Mould, investment director at AJ Bell, said: “It seems only natural that one of the world’s biggest hotel groups has had a tough time of late, given the concerns about a slowdown in global economic growth.

“Weaker economic conditions are bad news for big hotels catering for business travellers.”