InterContinental Hotels announced its half-year report on Tuesday, which saw revenue and profits rally in the first six months after a successful recovery in the travel industry.
The group reported total revenue surged 52% to $1.79 billion from $1.18 billion a year prior. In addition, operating profit came in at $361 million, increasing 162% from 2021.
Meanwhile, Basic Earnings Per Share rallied 348% to 117.4c. The increase in earnings followed the growth in demand for travel in most of IHGs markets.
“The recovery in demand and pricing led to group profit more than doubling versus 2021, with profitability in the Americas now ahead of 2019,” said Keith Barr, CEO of IHG.
Barr continued that despite Greater China’s challenges with Covid and travel restrictions, IHG has seen “a strong recovery in the most recent months.”
The group opened around 100 hotels in the first half and signed more than 200 properties to take its pipeline to 1,858.
Furthermore, the hotels and resorts firm resumed payment of an interim dividend at 43.9c, and an additional $500 million of surplus capital will be returned via its new share buyback program.
After a convincing return to the travel sector, IHGs organic traffic has rallied to record levels. Interest has shown positive momentum since June 2021, and it’s difficult to bet against the hotel company after seeing both consumer metrics and its most recent earnings.
IHG shares are down 1.44% on Tuesday.