The British hotel group Intercontinental Hotels saw its profit quadruple over one year in the first half thanks to the renewed appetite for travel since the lifting of health restrictions in many countries.
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In a press release on Tuesday, the group reveals a net profit group share at constant scope of 216 million dollars, against 48 million a year earlier, for a turnover up 52% over one year to 1.8 billion. dollars for the first six months of the year.
“
We enjoyed strong sales in the first half of 2022 with rising demand for travel in most of our markets
“, welcomed the general manager Keith Barr, quoted in the press release.
Revenue per room is now around 10% lower than before the pandemic, in this flagship group of a sector which has been particularly affected by health restrictions and the collapse of tourism and business travel.
In addition to the recovery of tourism, he notes a return of business travel and an ability to increase prices.
Profitability that exceeds that of 2019 in America
Profitability in the Americas now exceeds that of 2019, before the pandemic, and the Europe Middle East Africa region also saw “
great improvement
”, albeit with a “
difficult period in China due to the extension of travel restrictions related to
to the rebound in Covid-19 cases.
The group opened nearly 100 hotels in the first half for a total that now exceeds 6,000 establishments worldwide.
“
While the economic outlook remains uncertain with central banks and governments taking action against inflation, we remain confident in our business model and the attractiveness of the sector
,” concludes Keith Barr.
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In view of these optimistic expectations, the group is launching a share buyback of 500 million dollars and increasing its dividend by 10%.
“
The hits to business in China remain a drag, worker shortages a problem, and business travel and conferences and meetings may never return to pre-pandemic levels given the increased use of technology and videoconferencing
,” notes Keith Bowman, Interactive Investor analyst.
However, he praises the diversity of the group's brand portfolio, with options ranging from luxury to low-cost hotels, and its presence across the world, with debt down 30% year on year.
The action yielded 2.09% to 4912.00 pence at the start of trading on the London Stock Exchange.