October 20, 2017 / 6:34 AM / in a year

Hotelier IHG says hurricanes hit revenue growth in Americas

FILE PHOTO: Hotel Intercontinental is pictured in Vienna, Austria, May 6, 2016. REUTERS/Leonhard Foeger/File Photo

(Reuters) - InterContinental Hotels Group (IHG) (IHG.L) reported a slowdown in revenues in its Americas business on Friday, due to the affects of Hurricanes Harvey and Irma on the regional business.

Revenue per available room (RevPAR) at its Americas business rose 0.8 percent in the three months ended Sept. 30, compared with a rise of 1.9 percent in the same period last year and 0.1 percent growth in the second quarter of 2017.

In the United States, the largest market for the company in terms of room numbers, RevPAR was up 0.4 percent, which compared with a rise of 1.4 percent a year ago.

“Hurricanes Harvey and Irma had a mixed impact; displacement activity together with the relief and reconstruction efforts benefitted our franchise business. But performance across the managed estate was negatively impacted by the cancellation of group bookings at some hotels,” the company said.

The company, which runs over 5,000 hotels in about 100 countries under brands such as Crowne Plaza, Holiday Inn and InterContinental, said RevPAR in Mexico was flat due to the earthquake in Mexico City.

However, global comparable RevPAR in the third quarter was up 2.3 percent, compared with a growth of 1.3 percent last year, helped by recovery in its European business.

“Markets previously impacted by terrorist attacks grew strongly, including RevPAR growth of 6 percent in France, and double-digit growth in Belgium and Turkey,” IHG said.

Separately, IHG said Elie Maalouf, it’s chief executive for the Americas, would join the main board as an executive director with effect from Jan. 1, 2018.

(This story corrects second paragraph to read “...a rise of 1.9 percent in the same period last year and 0.1 percent growth in the second quarter of 2017...” instead of “...a 1.1 percent rise in the second quarter and 1.9 percent a year earlier...”)

Reporting by Esha Vaish and Radhika Rukmangadhan in Bengaluru; Editing by Greg Mahlich

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