Shares in InterContinental Hotels Group (LON:IHG) have climbed into positive territory in today’s session, with the company revealing a rise in revenue for the first three months of the year. The update comes after the Holiday Inn and Crowne Plaza owner inked a deal to expand its luxury and upscale estate in the UK.
As of 10:31 BST, InterContinental’s share price had added 0.61 percent to 4,648.00p. The shares are marginally outperforming the broader London market, with the benchmark FTSE 100 index currently standing 0.42 percent higher at 7,534.26 points.
InterContinental’s Q1 RevPAR up
InterContinental announced in a statement this morning that its global comparable revenue per available room (RevPAR) had climbed 3.5 percent in the first quarter of the year. The company, however, noted that the earlier timing of Easter weekend which this year was split evenly between March and April, had had a negative impact on RevPAR growth in the Americas and Europe. The blue-chip group meanwhile said that its efficiency programme was underway, on track to deliver $125 million in annual to reinvest to drive growth.
“There continues to be strong momentum across the business. We have made excellent progress against our initiative to expand our footprint in the $60 billion luxury segment,” the group’s chief executive Keith Barr commented in the statement. “The fundamentals for our industry remain strong, we have the right strategy, and we are confident in the outlook for the year ahead.”
Analyst ratings update
Liberum Capital reiterated its ‘outperform’ rating on InterContinental today, while Credit Suisse continues to see the Holiday Inn and Crowne Plaza owner as an ‘outperform’. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average price target of 4,463.85p.