The attacks on Paris and the impact of the low oil price on business in the Middle East made for a subdued set of interims for the hotelier InterContinental Hotel Group (LON:IHG).
Revenues fell 8% to US$838mln in the period, though on an underlying basis, which excludes disposals, the company said the top line grew around 5%.
Operating profit grew 2% to US$334mln, while a dividend payment of 30 cents, represented a chunky 9% increase and underscored IHG’s confidence in the outlook.
The firm, which owns the Holiday Inn, Intercontinental and Hotel Indigo brands, is sitting US$1.83bn of debt, up 7% year on year.
Revenue per available room, a key metric in the hospitality industry, grew at 2% over the six months to June 30, with the rate accelerating in the second quarter.
RevPar was off 19.5% in the French capital with the city still recovering from last November’s terror attacks, while the decline was 8% in the Middle East as the tumble in the value of crude affected business.
But buoyed by a strong pipeline of new hotels coming online and the resilient performance of the remainder of the IHG portfolio, chief executive Richard Solomons was upbeat on the outlook.
“The fundamentals for our industry, and particularly for IHG as one of the largest branded players, remain compelling,” he told investors.
“This backdrop, combined with our winning strategy and the strength of our business model, will enable us to deliver sustainable growth into the future.
“Despite the uncertain environment in some markets, we remain confident in the outlook for the remainder of the year.”