In IHG Hotels & Resorts' first quarter results, the company reports global RevPAR up 2.6 percent year-over-year with the Americas region down 0.3 percent, EMEAA up 8.9 percent and Greater China up 2.5 percent. The average daily rate is up 2.3 percent and occupancy is up 0.2 percent points.
Gross system size growth was up 5.0 percent YOY, +0.7 percent YTD while the company opened 6,300 rooms (46 hotels) in Q1, 11.1 percent more YOY adjusting for Iberostar. Net system size growth is up 3.4 percent YOY, flat YTD; adjusting for Iberostar, it is up 3.2 percent YOY, flat YTD.
During the quarter, IHG's global system had 946k rooms (6,368 hotels) with 66 percent across midscale segments and 34 percent across upscale and luxury. The company signed 17.7k rooms (129 hotels) in Q1, up 7.1 percent YOY with a global pipeline of 305k rooms (2,079 hotels), making it up 6.6 percent YOY.
“Global RevPAR in the first quarter of 2024 continued to grow, up +2.6 percent, reflecting the strength of our globally diverse footprint," IHG Hotels & Resorts CEO Elie Maalouf said in a statement. "There was an impressive performance in EMEAA which was up nearly +9 percent. The Americas, having already recovered very strongly, was broadly flat due to some adverse calendar timing, and Greater China grew by +2.5 percent and will continue to benefit from returning international inbound travel this year. Global occupancy moved up to 62 percent and average daily rate increased by a further +2 percent as pricing remained robust, reflecting the complete return of leisure, business and group travel."
"We opened more than 6,200 rooms across 46 hotels in the quarter, and signed nearly 18,000 rooms across 129 properties to increase our pipeline +6.6 percent year-on-year. Compared to the same quarter last year, room openings rose +11 percent adjusting for Iberostar, and signings grew +7 percent. ‘Quicker to market’ conversions generated over 35 percent of openings and signings in the quarter, reflecting the attractiveness of our brands and enterprise platform."
"In April, we were delighted to announce an agreement with NOVUM Hospitality that will double IHG’s presence in Germany through even more conversions and strengthen our position in a priority market for domestic, inbound and outbound travel. The deal adds up to 119 hotels (17,700 rooms) or +1.9 percent to our global system over the coming years. This further validates the attraction to hotel owners of joining IHG’s enterprise, and boosts confidence for our net system growth outlook."
In a separate announcement, Maalouf said changes to IHG's system fund arrangements will improve economics for its owners and the continued growth in ancillary fee streams will deliver value through its growth algorithm, consistent with the company's strategic priorities. "The combined power of our platform and efficiency of our operating model will continue to drive IHG forward," he said. "We are excited about the future and our ability to capitalize further on our strengths, scale and leading positions, and on the attractive, long-term demand drivers for our markets.”
Americas
Q1 RevPAR was down 0.3 percent YOY, with U.S. RevPAR down 1.9 percent and up 11.3 percent in aggregate across Canada, Latin America and the Caribbean. Occupancy was 63.1 percent, down 1.1 percent pts, and rate was up 1.5 percent. Groups demand was strongest, leisure was also ahead YOY, and business revenue was slightly lower. The timing of Easter led to lower demand in late March including for business travel, but was followed by higher demand in April, such that trading over the last eight weeks in aggregate has seen U.S. RevPAR ahead of last year.
Gross system growth was up 2.3 percent YOY and up 0.6 percent YTD, with 3,100 rooms (26 hotels) opened in the quarter. Net system size growth was up 1.0 percent YOY and flat YTD. A further 5.1k rooms (61 hotels) were added to the pipeline, representing a broadly similar signings pace to the same quarter last year.
Signings included nine Garner and eight avid hotels, 11 hotels across the Holiday Inn brand family, 25 across the extended-stay brands and five across luxury and lifestyle.