InterContinental share price: Third-quarter room revenue beats estimates

on Oct 21, 2014
Updated: Oct 21, 2019
Listen

iNVEZZ.com, Tuesday, October 21: InterContinental Hotels Group Plc (LON:IHG) has reported that its revenue per room rose seven percent in the third quarter, beating analyst estimates.

Despite the news, InterContinental’s share price has lost about two percent in early London trading today, with the company noting that some of its markets faced “heightened uncertainty and risks”.
**Third-quarter results**
InterContinental, which owns the Crowne Plaza and Holiday Inn brands, announced in a statement this morning that its revenue per available room, a measure of occupancy and rates known as RevPAR, had climbed seven percent in the third quarter, surpassing the 6.2 percent forecast of Bloomberg-polled analysts. The group’s RevPAR for the first nine months of the year rose 6.3 percent.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

In the US, InterContinental’s RevPAR increased by 8.7 percent, fuelling an 8.4 percent gain for the company’s Americas segment. In Europe, the measure rose 6.1 percent with particularly strong results in the UK and Germany. RevPAR at InterContinental Hong Kong climbed 5.4 percent during the quarter, with the group saying that it had only seen ‘minimal impact’ from the recent protests in the Special Administrative Region.

The company reported that its pipeline now stood at 190,000 rooms, or 1,198 hotels, with more than 45 percent under construction. InterContinental opened 8,000 rooms during the reported period and signed a further 16,000 into the system.
Commenting on the results, group chief executive Richard Solomons said that InterContinental had delivered its “best quarterly RevPAR performance in over two years with growth in each of our four regions”.

Solomons noted that “some of our markets face heightened uncertainty and risks” but added that “we continue to see strong momentum in the business and remain encouraged by current trading and positive booking trends”.

Today’s results come after InterContinental in August reported that its operating profit had dropped eight percent to $310 million (£184 million) on a reported basis in the first half of the current year. ()

**Analysts on InterContinental**
As of October 17, the consensus forecast amongst 47 polled investment analysts covering InterContinental for the Financial Times suggests that investors should hold their position in the company. 
Analyst Ratings Network reports that the FTSE 100 group currently has a consensus ‘hold’ rating and an average price target of 2,196.73p.
**As of 08:52 BST, buy InterContinental shares at 2222.00p.**
**As of 08:52 BST, sell InterContinental shares at 2218.00p.**

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

0/10
Learn more
Leisure & entertainment Stock Market Transport & tourism