InterContinental Hotels Group (IHG) today released its Q1 2018 Trading Update, reporting a 3.5 percent increase in global RevPAR and a 2.9 percent increase in RevPAR in the Americas. The company’s net system size growth is up 4.3 percent year-over-year (YOY), bringing its total portfolio to 5,367 hotels and about 800,000 rooms.
The company also reported signing rooms at the highest rate in more than a decade in Q1 2018—more than one per day at a total of 20,000 rooms and 146 hotels signed—largely let by its avid hotels brand, which launched last year. More than 100 avid properties are now signed. The Americas region had its strongest Q1 hotel signings since 2008, with 10,000 rooms (101 hotels) signed. IHG now has 252,000 rooms across 1,718 hotels in its pipeline, with approximately 45 percent under construction.
The company also plans to grow its presence in the high-value luxury and upscale segments, with the recent acquisition of a 51 percent interest in Regent Hotels & Resorts, as well as the deal signed this week to add 13 luxury and upscale hotels to its UK portfolio.
“In the first quarter we delivered RevPAR growth of 3.5 percent, net system size growth of 4.3 percent, and our best signings pace for eleven years,” Keith Barr, CEO of InterContinental Hotels Group PLC, said. “This strong performance reflects our focus on driving industry-leading net rooms growth over the medium term, underpinned by our new strategic initiatives.”
Barr added, “Our rollout of IHG Concerto, incorporating our new Guest Reservation System, continues at pace, with more than 1,000 hotels now using the platform, and we are on-track to complete roll-out by the end of 2018/early 2019. The fundamentals for our industry remain strong, we have the right strategy, and we are confident in the outlook for the year ahead.”