IHG Expects Strong 2023 Financials: IHG (IHG.L), the parent company of Holiday Inn, anticipates a robust financial performance by the end of 2023. This positive outlook follows a rise in quarterly revenue per room, attributed to a strong demand for summer travel and a resurgence in China to pre-pandemic levels.
However, IHG’s shares dipped by 2.2% in morning trade, which analysts, such as Richard Clarke from Bernstein, linked to a slowdown in the company’s net system size growth from the previous quarter and concerns regarding its ability to meet full-year guidance. Short-term financing challenges have been hindering the development of new hotels.
In the third quarter, IHG’s global revenue per available room, a key performance metric for the hotel industry, increased by 10.5% compared to the previous year. The company reported growth in its leisure, business travel, and group travel segments. CEO Elie Maalouf emphasized the strength in these areas, but specific guidance for 2023 was not provided.
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Business travel revenue had already surpassed 2019 levels in the third quarter, but group and meetings revenue remained below those pre-pandemic levels. IHG’s finance chief, Michael Glover, explained that recent bookings indicate a full return of group and meetings activity.
The hotel industry has benefited from increased demand for leisure travel as people have been using their savings for vacations, despite rising living costs. While there’s a potential threat to tourism in the Middle East due to a broader conflict, IHG has not observed a slowdown in demand in the region linked to the Israel-Hamas conflict.
However, the situation remains uncertain, and IHG has temporarily closed two hotels in Tel Aviv. They have also adjusted their policies to allow guests to cancel reservations free of charge in response to cancellations and postponements.
Our Reader’s Queries
What is the profit of IHG in 2023?
IHG has reported a whopping $459m profit for H1 2023, marking a significant increase of 112.5% from the previous year’s $216m. The hotel group’s total revenue also saw a healthy growth of 24.1% year on-year, reaching $2.23bn from $1.79bn. These impressive figures are a testament to IHG’s continued success and growth in the hospitality industry.
What is the fastest growing IHG hotel?
IHG’s rapidly expanding brand, voco, has gained immense popularity owing to its exceptional design and operational framework. This unique approach enables property owners to bring their own distinctive visions to life, resulting in a truly personalized experience for guests. With a focus on conversion, voco hotels are quickly becoming a preferred choice for travelers seeking a one-of-a-kind stay.
What is the stock price forecast for IHG?
Analysts predict that the average price target for this stock is 6,006.00p, with a high forecast of 7,500.00p and a low forecast of 5,200.00p. This represents a -15.50% change from the last price of 7,108.00p.
Who is the new partner of IHG?
IHG Hotels & Resorts has recently revealed a strategic partnership with Iberostar, aimed at expanding its network of all-inclusive resorts. This exciting collaboration is set to take effect in November 2022, and will undoubtedly bring a wealth of new opportunities for both companies. With IHG’s expertise in the hospitality industry and Iberostar’s reputation for providing exceptional all-inclusive experiences, guests can expect nothing but the best from this dynamic duo. Stay tuned for more updates on this exciting development!