IHG sees drop in Middle East room revenue

IHG Hotels, which operates several brands including Holiday Inn, reported a drop in room revenues in its Middle East hotels over the third quarter. (Reuters)
Updated 20 October 2017
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IHG sees drop in Middle East room revenue

LONDON: IHG’s strong global performance for the third quarter dipped in the Middle East.
The hotel operator said revenue per available room, a measure known in the industry as RevPAR, fell 6 percent in the region compared to a year earlier.
In its latest trading update, the company, whose holdings include the InterContinental, Crowne Plaza and Holiday Inn hotel brands, cited the ongoing impact of low oil prices, high supply growth and government austerity measures as well as the timing of Ramadan as reasons for the decline.
Globally, the group recorded a 2.3 percent rise in RevPAR over the period with a net rooms growth of 4.1 percent, its strongest since 2010.
This takes the group total to 786,000 rooms with a further 235,000 in the pipeline.
China and Europe recorded the strongest growth in room revenues.
In the Middle East, IHG said it maintained momentum this year with the opening of six new hotels by the end of 2017.
This includes a Holiday Inn in Doha and two new properties in Saudi Arabia – Staybridge Suites Jeddah Alandalus Mall and a Crowne Plaza in Riyadh.
Discussing the group’s expanding footprint across the region at Arabian Travel Market earlier this year, Rajit Sukumaran, the regional chief development officer at IHG said: “While we have great demand for our mid-scale offering in the current economic environment, we are also seeing interest in our extended-stay brand, Staybridge Suites, in response to the evolution of the region’s major cities into budding business hubs.”
IHG was the first international hotel company to enter the Middle East with the launch of the InterContinental Phoenicia Beirut in Lebanon in 1961.


Scottish government wins fracking case against energy giant Ineos

Updated 19 June 2018
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Scottish government wins fracking case against energy giant Ineos

  • The devolved government said a moratorium on fracking was in place
  • neos had argued that the ban was imposed unlawfully

EDINBURGH: Scotland’s highest court has ruled in favor of a government ban on fracking which had been challenged by energy giant Ineos, the Scottish government said on Tuesday.
“This decision vindicates the extensive process of research and consultation which the Scottish government has undertaken since 2015,” Scottish business minister Paul Wheelhouse said in a statement. “Our preferred position is not to support unconventional oil and gas extraction in Scotland (fracking), and that position remains unchanged.”
The devolved government said a moratorium on fracking — gas extraction via hydraulic fracturing of the ground — was in place. That meant no local authority could grant planning permission until an impact assessment process had been carried out.
Ineos had argued that the ban was imposed unlawfully, and that it contradicted evidence that shale gas could be produced safely by unconventional methods.
Scotland decided to outlaw fracking in October after a public consultation found overwhelming opposition to it.