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The Markets
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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Pharma & Biotech

PREVIEW: Will InterContinental Hotels reveal another quarter of resilience?

February’s full year results for 2015 represented something of a show of resilience, but how did it hold up in the first quarter?

Holiday Inn owner InterContinental Hotels Plc (LON:IHG) is among the very few names in the book for Friday.

February’s full year results for 2015 represented something of a show of resilience.

Friday brings a trading update for the first quarter of 2016, and ahead of the numbers analysts expect a similar showing.

Vicki Stern, analyst at Barclays, expects IHG to show a 1.4% increase in revenue per room (or RevPar) across the whole group.

Stern forecasts strongest growth (1.7%) coming from operations in the Americas followed by Europe (with 1.6%) but operations in Asia, Middle East and Africa (AMEA) is seen slower (at 0.5%) while a small decline is expected from China.

“We expect net system growth of 2.7% (with Q1 typically being a lower quarter for openings),” Stern said in a note.

“We do not expect this to be a key event for the shares since the US lodging peers have already reported with explicit outlook commentary.”

Analysts at UBS, meanwhile, see slower growth across the group (with 1% Revpar forecast).

Similarly, though UBS expects the Americas to have performed best with 1.5% growth – whilst Europe is expected to lag at 1%.

British Airways and Iberia owner International Airlines Group (LON:IAG), meanwhile, is due to release passenger traffic statistics for April.

And air travel services group BBA Aviation (LON:BBA) is also due to update investors.

Pinch … punch … it is the first [Friday] of the month - which of course means traders everywhere will be distracted by US employment, specifically the monthly non-farm payroll statistics.

Expected stock market announcements

Capital & Counties Properties Plc (LON:CAPC), InterContinental Hotels Group plc(LON:IHG), International Consolidated Airlines Group (LON:IAG), Hastings Group Hldg Plc (LON:HSTG), BBA Aviation Plc (LON:BBA).

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