InterContinental Hotels (IHG) announced that it will launch a new luxury brand as the brand swung to a profit in the first half of this year. The hospitality chain will target high quality independent hotels for its new luxury collection and aims to take on more than 100 hotels within the 10 years.
The company recorded $138m operating profit for the six months ended 30 June 2021, as compared to a loss of $233m last fiscal. Revenue per available room (RevPAR) was up 20% following rise in occupancy in some markets following increased vaccination drives and easing of travel restrictions. Some hotels even registered 50% RevPAR above 2019 levels in July, though recovery in Europe, Middle East, Africa and Asia remained challenged.
“Our focus on the quality of our estate remains extremely high, and we’re making rapid progress with the review of our Holiday Inn and Crowne Plaza portfolios to ensure the consistency of these leading brands and that they are well positioned for future growth,” said Keith Barr, CEO of IHG. “While there is a risk of trading volatility in the balance of the year, and discretionary business trips, group bookings and international travel will take time to fully recover, we are confident in the strength of IHG’s future prospects.”
