First-quarter systemwide room revenue generated by business transient travel at IHG Hotels & Resorts increased 3 percent year over year, according to an earnings report on Thursday.
The company, which owns brands such as Holiday Inn, Crowne Plaza and InterContinental, saw its average daily rate for the quarter increase by 2.2 percent compared to the same time last year, while revenue per available room increased 3.3 percent year over year.
The "strong" quarter was also boosted by an increase in occupancy, with IHG CEO Elie Maalouf adding the company is "on track" to meet full-year profit expectations "despite increased volatility."
The increase in Q1 business travel room night revenue was particularly felt in IHG's Americas region, where it grew 4 percent year over year, while groups revenue for the region increased 6 percent.
Across Europe, the Middle East and Africa, ADR for the quarter was up 4 percent year-on-year, while RevPAR was up 5 per cent. Occupancy for the quarter also increased by 0.6 percentage points to 66.7 per cent.
RevPAR ranged from "broadly flat" in the UK, to an increase of 5.6 percent in Continental Europe, while the Middle East and Asia saw increases of 6.2 percent and 6.8 percent, respectively.
"We had strong trading performance and development activity for our world class brands in Q1, despite increased volatility in the macro environment," Maalouf said in a statement.
"Looking ahead, while noting that some forward economic indicators have softened, our comparable on-the-books global revenue for Q2 continues to show growth on the same position a year ago."
The company opened 86 hotels (equating to 14,600 rooms) in the first quarter, more than double the same period last year, and signed an additional 158 hotels (25,800 rooms) following its February acquisition of Munich-based Ruby Hotels.
Expansion in Europe for the quarter was further boosted by IHG's 2024 deal with Novum Hospitality, which saw an additional 13 hotel conversions (1,500 rooms) between January and March. To date, a total of 71 hotels have been converted as part of the deal, while overall regional expansion in the quarter saw the opening of 30 hotels (6,200 rooms), including the group's first "net zero" hotel in the U.K.
Globally, the company's footprint currently spans 6,668 hotels (987,000 rooms), which marks a year-on-year increase of 4.3 percent.
"The outlook of attractive long-term structural growth drivers for both demand and supply remain unaltered for the travel industry and for IHG in particular," Maalouf added.
"Notwithstanding shorter term macro-economic uncertainties, we remain confident in the strength and resilience of IHG's enterprise platform and our ability to capitalise further on our scale, leading positions and the fundamental growth drivers for our markets."
Originally published by BTN Europe.