Holiday Inn and Kimpton owner IHG Hotels and Resorts saw a 22% boost to revenue per room in London as the rebound in demand to visit the capital shows no sign of slowing.
The growth, alongside the return of the Asian market as pandemic restrictions eased, helped IHG’s profits soar by 89% to $567 million (£444 million).
CFO Michael Glover told the Standard that the boost in London came across all traveller types and price points. He said there was no sign of customers cutting back on travel, even as they reduced spending elsewhere.
“What we’re finding is real resiliency, people want to travel,” he said. “I can’t talk to anyone who doesn’t want to travel.”
IHG is also launching a new, “mid-scale” conversion brand, which Glover said will come in at a slightly lower price point than Holiday Inn Express. It will launch in the US first, but IHG hopes to bring it to the UK soon.
Despite plans for a cheaper brand, Glover said IHG is not seeing evidence of customers “trading down” from higher-end hotels to mid-range offerings.
“Right now we’re not seeing anybody trade down,” he said. “We’re just trying to capture a lot of different price points.”
It’s been all change at the top of IHG in recent months, with both Glover and CEO Elie Maalouf being promoted to their roles this year after holding the same roles within the Americas division.
“The transition has gone really well, really smooth. Elie’s going to do a great job,” Glover said.
IHG shares are up 2% to 5,768p today. They are up more than 19% for the year to date. IHG shares are listed in both London and New York, and Glover said there were no plans for that to change.
