Holiday Inn-owner InterContinental Hotels Group blamed lower business bookings in China and Hong Kong protests for a 0.8% fall in third-quarter revenue per room on Friday, the latest company to be pinched by weaker global travel.
The hotel industry in general is feeling the impact of slowing global growth, which is denting business travel. Rival Hilton Worldwide Holdings Inc. warned that lagging growth in China and the China-US trade war would hurt revenue. Raffles owner AccorHotels narrowed its full-year profit guidance, citing uncertainty on China-related issues.
Four months of protests in Hong Kong have taken a toll on tourism, while weak economic data from China has been discouraging.
IHG reported a 6.1% fall in revenue per available room (RevPAR) in Greater China during the quarter, with a 36% drop in Hong Kong. (https://reut.rs/35Lf0Jl)
“While we are certainly not at the stage where business travel has been scaled back on a large scale, the cracks are certainly showing,” AJ Bell’s Investment Director Russ Mould said.
Shares in IHG, which has nearly 5,800 hotels including the Crowne Plaza and Regent Hotels & Resorts brands, fell nearly 2% in early trade on Friday.
The company has been putting more money into China, its fastest-growing market, using new loyalty programs, digital payment options and revamping rooms at Holiday Inn to woo local business travelers. Of the 13,000 rooms IHG opened across its brands in the quarter, 4,100 were in China.
But Chief Financial Officer Paul Edgecliffe-Johnson said the company was seeing more leisure than business travelers, who tend to spend less money on bookings.
Edgecliffe-Johnson said the company had also seen some pressure in the United States as US manufacturing businesses cut spending on conference halls bookings during the third quarter.
Holiday Inn-owner IHG hit by weak China, Hong Kong bookings
Holiday Inn-owner IHG hit by weak China, Hong Kong bookings
- IHG’s revenue fall comes amid a general slowdown in the global hotel industry
- Company opened 13,000 rooms in Q3
DP World announces new leadership appointments
DUBAI: DP World announced the appointment of Essa Kazim as Chairman of its Board of Directors and the appointment of Yuvraj Narayan as Group Chief Executive Officer.
Essa Kazim currently serves as Governor of the Dubai International Financial Centre and Chairman of Borse Dubai. He brings extensive experience in financial and economic affairs, having previously held senior leadership positions in several national institutions.
Yuvraj Narayan has extensive professional experience in financial management, corporate finance, supply chains, and global trade. Since joining DP World in 2004, he has led a number of strategic and transformational initiatives that supported the company’s expansion across international markets and strengthened its role as an integrated global provider of end-to-end supply chain solutions.
Narayan has served as Group Chief Financial Officer since 2005, contributing to the company’s financial resilience and operational efficiency.
DP World affirmed that the new appointments support its strategy for sustainable growth and reinforce its role in strengthening global supply chains and supporting Dubai’s position as a leading hub for trade and logistics.
