IHG H1 operating profit rises on strong China demand

Interim operating profit at Intercontinental Hotels Group rose to $406m from $370m with revenue per available room up 3.7% led by strong growth in China.

Revenue grew 8% to $2.1bn, while basic earnings per share fell 3% to 123.2 cents. Pre-tax profits fell 15% to $303m.

The interim dividend was lifted to to 36.3 cents a share from 33 cents in 2017.

Chief executive Keith Barr said the company had a “strong” first half.

“The fundamentals for our industry are strong, we are confident in the outlook for the balance of the year and in our ability to deliver industry-leading net rooms growth over the medium term," he said.

"Each of our regions continue to deliver strong momentum. This is led by Greater China, where double digit growth in both revPAR and net system size, as well as record signings, reflects the ongoing benefits of our long term strategic focus on this important market."

"Demand for our unique Chinese owner proposition "Franchise Plus" continues to be excellent and we now have more than 100 Holiday Inn Express hotels for this model either in the pipeline or open."