Intercontinental Hotels Group has reported a strong start to the financial year and expects to meet its target of US$125 million of cost savings by 2020.
“In the first quarter we delivered RevPAR growth of 3.5 per cent, net system size growth of 4.3 per cent and our best signings pace for eleven years,” said Keith Barr, chief executive of IHG.
Earlier this week the company said it would expand its Kimpton brand in the UK following a deal with Foncière des Régions.
Alongside the 51 per cent stake in Regent Hotels acquired in March, this will establish it as the leading luxury hotel operator, said Barr.
In the three months to the end of March, prices rose by 1.9 per cent at IHG while occupancy was up by one per cent.
However, progress was hampered by the timing of the Easter weekend which affected RevPAR growth in the Americas and Europe.
Avid hotels, the new mainstream brand, is also growing ahead of expectation with the total now more than 100, with on average one added every other day since launch.
“The fundamentals for our industry remain strong, we have the right strategy, and we are confident in the outlook for the year ahead,” Barr added.