InterContinental Hotels Group Plc reported first-quarter room revenue that beat analyst estimates as the owner of the Holiday Inn and Crowne Plaza saw increases in all its regions.
Revenue per available room, an industry measure of occupancy and rates known as revpar, increased by 5.9 percent, the Denham, England-based company said in a statement Friday. Analysts predicted 5 percent growth, according to the average of eight estimates compiled by Bloomberg.
“Our industry-leading boutique brands are performing strongly, with high single-digit revpar growth in the U.S. and a growing geographical distribution,” Chief Executive Officer Richard Solomons said in the statement.
The company’s stock surged to a record last month after Starwood Hotels & Resorts Worldwide Inc. said it’s exploring strategic and financial alternatives to increase shareholder value, fueling speculation it may bid for InterContinental. Activist investor Marcato Capital Management in November urged InterContinental to merge with another leading hotel operator.
InterContinental closed at 2,759 pence in London trading on Thursday, 15 percent higher than a year ago. That compares with a 17 percent drop in the Bloomberg World Lodging Index.
This article was written by Dalia Fahmy from Bloomberg and was legally licensed through the NewsCred publisher network.