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oliday Inn and Kimpton proprietor IHG Hotels and Resorts noticed a 22% increase to income per room in London because the rebound in demand to go to the capital exhibits no signal of slowing.
The development, 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 informed the Standard that the increase in London got here throughout all traveller sorts and worth factors. He mentioned there was no signal of shoppers chopping again on journey, at the same time as they lowered spending elsewhere.
“What we’re finding is real resiliency, people want to travel,” he mentioned. “I can’t talk to anyone who doesn’t want to travel.”
IHG can be launching a brand new, “mid-scale” conversion model, which Glover mentioned will are available in at a barely lower cost level than Holiday Inn Express. It will launch within the US first, however IHG hopes to deliver it to the UK quickly.
Despite plans for a less expensive model, Glover mentioned IHG isn’t seeing proof of prospects “trading down” from higher-end resorts to mid-range choices.
“Right now we’re not seeing anybody trade down,” he mentioned. “We’re just trying to capture a lot of different price points.”
It’s been all change on the prime of IHG in latest months, with each Glover and CEO Elie Maalouf being promoted to their roles this yr after holding the identical roles inside the Americas division.
“The transition has gone really well, really smooth. Elie’s going to do a great job,” Glover mentioned.
IHG shares are up 2% to five,768p at present. They are up greater than 19% for the yr to this point. IHG shares are listed in each London and New York, and Glover mentioned there have been no plans for that to vary.
