Shares in InterContinental Hotels Group (LON:IHG) have fallen into the red in today’s session, underperforming the broader market, as the company posted a small rise in first-quarter revenue. The Holiday Inn and Crowne Plaza owner has suffered from weakness in the Greater China region.
As of 09:53 BST, InterContinental’s share price had given up 0.84 percent to 4,956.00p, underperforming the benchmark FTSE 100 index which is currently 0.63 percent better off at 7,397.80 points. The group’s shares have added more than six percent to their value over the past year, as compared with about a one-percent drop in the Footsie.
InterContinental posts results
InterContinental said in a statement today that its global first-quarter revenue per available room (RevPAR) had inched 0.3 percent. The group enjoyed strong performance in the Americas, where comparable RevPAR rose 0.8 percent, driven by 1.2 percent rate growth, while the US saw 0.6-percent growth despite tough comparables from hurricane related demand in Q1 2018. InterContinental’s RevPAR in China, however, was flat during the reported period when the region saw 11-percent growth.
“Our strategic focus on driving industry leading net rooms growth is delivering strong results, with our net system size increasing 5.4 percent in the first quarter and our highest number of signings in 12 years,” InterContinental’s chief executive Keith Barr commented in the statement, adding that the group’s efficiency programme was on track to delivery $125 million of annual savings by 2020.
“While macro-economic and geopolitical uncertainties remain in some markets, the strong fundamentals of our business give us confidence for the balance of the year,” Barr pointed out.
Analyst ratings update
According to MarketBeat, the Holiday Inn and Crowne Plaza owner currently has a consensus ‘hold’ rating, while the average target for the InterContinental share price stands at 4,885p.
The group’s results come after Premier Inn owner Whitbread (LON:WTB) revealed a slump in profits this week and warned of ‘acute’ political and economic uncertainty in the UK.