InterContinental Hotels Group reported a stronger-than-expected start to the year, posting first-quarter revenue per available room (RevPAR) growth of 4.4% compared with the same period a year earlier, outpacing analyst expectations of 3.3%.
The company said occupancy rose by 1.5 percentage points in the quarter, while average daily rate (ADR) increased by 2.0%, both contributing to the RevPAR gain.
On a regional basis, the Americas delivered 3.6% RevPAR growth, with the United States specifically recording a 3.4% rise. The EMEAA region achieved 5.6% growth, and Greater China saw RevPAR increase by 5.7%.
InterContinental also reported continued expansion of its portfolio. Net system size grew 5.0% during the quarter, as 14,900 rooms were opened. Gross system size expanded by 6.6%. The company signed agreements for 21,400 rooms in the quarter - described as 6% growth - lifting the global development pipeline to 343,000 rooms.
However, the company flagged short-term pressure in parts of EMEAA. April RevPAR for the region fell 7% year over year, a decline that included a 50% drop in the Middle East sub-region. The Middle East accounts for 19% of EMEAA, and InterContinental attributed the weakness to the ongoing Middle East conflict and to broader disruptions in international travel.
By contrast, performance in the Americas showed signs of momentum. The company noted an acceleration in RevPAR growth rates during March and April for the region.
Looking ahead to the current quarter, group-level bookings point toward year-over-year growth for the second quarter. Bookings for the EMEAA region, the company said, indicate improvement in May and June.
Despite the regional headwinds in April, InterContinental reiterated its confidence in meeting full-year consensus forecasts: RevPAR growth of 2.2% for the year and adjusted earnings per share of 566 cents.
Methodology note - The information above reflects the company-stated results, regional breakdowns, system-size metrics, booking trends and management guidance as reported by InterContinental Hotels Group for the periods described.