A PRELIMINARY REPORT found 2018 was another good year for InterContinental Hotels Group. The company grew in size and revenue, and its leaders expect that to continue.
Some highlights of the report include a $27.4 billion increase in gross revenue, up 6.6 percent over the previous year. IHG’s global fiscal year RevPAR grew 2.5 percent and the net system growth reached 4.8 percent, the highest it’s been in a decade. The number of signings grew 18 percent over the previous year, also the highest it has been in a decade, with most being in the Holiday Inn brand family.
“The investments we have made have had a significant impact, allowing us to further evolve our established brands, move quickly to strengthen our portfolio both organically and by acquisition, and create real momentum in our business,” said IHG CEO Keith Barr. “We have made further progress in 2019 with the acquisition of the top-tier luxury brand Six Senses and the planned launch of a new all-suites upper midscale brand.”
The all-suites upper midscale brand targets an $18 billion industry segment where strong guest and owner demand has driven a roughly 70 percent increase in room supply in the last 4 years, according to the report.
Holiday Inn Express new guest room designs are now open or committed to in about 50 percent of the company’s global estate. The Crowne Plaza renovation is completed or on-going across one-third of the U.S. estate. The company’s new brands continued to grow as well. Avid hotels saw 170 signings since its launch, and the upscale Voco brand signed 16 hotels. Also, the repositioning of IHG’s recently acquired Regent Hotels & Resorts continued with three more signings.
IHG is one of three major companies that currently dominate the U.S. building pipeline, according to Lodging Econometrics. The other two are Marriott International Inc. and Hilton Worldwide Holdings Inc. LE reported on Nov. 9 Marriott has 1,380 projects or 181,900 rooms in some phase of construction, and Hilton Worldwide has 1,350 projects or 150,700 rooms. IHG came in third with 939 projects or 95,300 rooms in the construction pipeline.
“The fundamentals of our business remain strong, and while there are macro-economic and geopolitical uncertainties in some markets, we are confident in the year ahead and that our strategy will deliver industry-leading net rooms growth over the medium term,” Barr said.