InterContinental Reports 10 Percent Increase in Profit

InterContinental Reports 10 Percent Increase in Profit

Vacation News » Europe Vacation News Edition | By Francys Vallecillo | February 18, 2014 12:46 PM ET

For its tenth year as a standalone company, InterContinental Hotels Group announced a 10 percent annual profit in 2013.

The Denham, England-based company said operating profit before exceptional items and tax reached $668 million in 2013 from $605 million a year earlier.

In the last 12 months, the company has disposed of three InterContinental hotels, with total gross proceeds of almost $830 million. This includes the sale of the InterContinental Mark Hopkins, San Francisco for about $120 million, which was also announced today.

The company opened 237 hotels and signed another 444 hotels into their pipeline, the highest in five years, according to the statement.

In the Americas, revenue increased by nine percent to $916 million, while operating profit increased 13 percent to $550 million. InterContinental opened 173 hotels, while removing 112 hotels, as the company focuses on "high-quality growth."

IHG operates 4,700 hotels and 687,000 hotel rooms in almost 100 countries. It has more than 1,100 hotels in its development pipeline. The largest increase in 2013 was in China, with an 11 percent increase in hotel rooms to 69,000 rooms.

"Looking into 2014, although economic conditions in some markets remain uncertain, forward bookings data is encouraging and we are confident that we will deliver another year of growth," Richard Solomons, chief executive of InterContinental Hotels Group PLC, said in the statement.

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