InterContinental Hotels Group reported the strongest growth in hotel signings for a decade during the first half of 2018. Its net system size growth is up 4.1 percent year over year.
Increasing IHG's system size was one of a number of initiatives set forth in its strategic plan, first outlined publicly in February. Since then, the company also has launched three new brands: midscale brand Avid, now with 130 rooms signed; upscale brand Voco; and luxury brand Regent Hotels & Resorts.
The company is on pace to deliver approximately $125 million in annual savings by 2020. It is also on track to complete the roll out of its new global reservations system, IHG Concerto, by the end of 2018 or the beginning of 2019.
Q2 Results
Systemwide occupancy rose 1 percentage point year over year to 73.6 percent, and average daily rate grew 2.3 percent to $120.66.
In the Americas, revenue per available room increased 3.4 percent, driven by rate growth. U.S. RevPAR, up 2.9 percent, benefited from strong corporate and group bookings, as well as the calendar shift of Easter into the first quarter. In Europe, the Middle East, Africa and Asia region's RevPAR rose 3 percent, driven by 2.2 percent rate growth. In Greater China, RevPAR increased 9.3 percent.
Total revenue for the first half of the year increased 8 percent to $2.1 billion. IHG didn't report standalone revenue for the second quarter.
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