IHG's operating profit leaps 23%

Intercontinental Hotels Group's quarter one 2011 profit is up 23% on last year, with revenue growth at 6%.

IHG's operating profit leaps 23%
IHG's operating profit leaps 23%

IHG’s results, which span 1 January to 31 March, show revenue growth was up 8% from $362m (£221m) to $396m (£242m) on the same period last year.

Operating profit was up 35% to $112m, from $83m. Global revenue per available room (RevPAR) grew by 6.9% to $62.79 (£38.39).

Growth in Greater China was 18.8%, and the US saw its highest growth in the US since the second quarter 2006 with an 8.4% rise.

Intercontinental Hotels chief executive Andrew Cosslett said: "We delivered a strong set of results in the first quarter. Our strategy to free up capital to drive growth for our brands is on track.

"Post quarter end we sold two hotels in the US, with proceeds substantially above book value. We have recently committed to enter into a joint venture with Duet Hotels to take Holiday Inn Express into India, developing 19 new hotels by 2016."

He added that the openings of hotels including The Palazzo Las Vegas boosted room supply.

The news comes after IHG revealed ambitious growth plans.

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