Holiday Inn-owner IHG hit by weak China, Hong Kong bookings

IHG is the latest international hotel group to feel the squeeze in the travel sector amid the ongoing Hong Kong protests. (Shutterstock)
Updated 18 October 2019

Holiday Inn-owner IHG hit by weak China, Hong Kong bookings

  • IHG’s revenue fall comes amid a general slowdown in the global hotel industry
  • Company opened 13,000 rooms in Q3

Holiday Inn-owner InterContinental Hotels Group blamed lower business bookings in China and Hong Kong protests for a 0.8% fall in third-quarter revenue per room on Friday, the latest company to be pinched by weaker global travel.
The hotel industry in general is feeling the impact of slowing global growth, which is denting business travel. Rival Hilton Worldwide Holdings Inc. warned that lagging growth in China and the China-US trade war would hurt revenue. Raffles owner AccorHotels narrowed its full-year profit guidance, citing uncertainty on China-related issues.
Four months of protests in Hong Kong have taken a toll on tourism, while weak economic data from China has been discouraging.
IHG reported a 6.1% fall in revenue per available room (RevPAR) in Greater China during the quarter, with a 36% drop in Hong Kong. (https://reut.rs/35Lf0Jl)
“While we are certainly not at the stage where business travel has been scaled back on a large scale, the cracks are certainly showing,” AJ Bell’s Investment Director Russ Mould said.
Shares in IHG, which has nearly 5,800 hotels including the Crowne Plaza and Regent Hotels & Resorts brands, fell nearly 2% in early trade on Friday.
The company has been putting more money into China, its fastest-growing market, using new loyalty programs, digital payment options and revamping rooms at Holiday Inn to woo local business travelers. Of the 13,000 rooms IHG opened across its brands in the quarter, 4,100 were in China.
But Chief Financial Officer Paul Edgecliffe-Johnson said the company was seeing more leisure than business travelers, who tend to spend less money on bookings.
Edgecliffe-Johnson said the company had also seen some pressure in the United States as US manufacturing businesses cut spending on conference halls bookings during the third quarter.


Key to success is passion: PepsiCo official

“I always think success is married with passion,” Simon Lowden said, adding that he likes to get involved with ideas that excite him
Updated 14 November 2019

Key to success is passion: PepsiCo official

  • Lowden was speaking at a session titled “100 years is a long time: Preparing for multiple shifts.”

RIYADH: The key to success is being passionate about what you do, Simon Lowden, chief sustainability officer at PepsiCo, told a brainstorming session at the Misk Global Forum in Riyadh on Wednesday.

“I always think success is married with passion,” he said, adding that he likes to get involved with ideas that excite him.

“I started my life in a small farming village, went to London to attend university, joined PepsiCo … and now I run our sustainability agenda,” he said. “This made me rich as a person, and I did things I really enjoyed.”

Lowden was speaking at a session titled “100 years is a long time: Preparing for multiple shifts.”

Other panelists included Dave Brooke, vice president of client solutions at Dell Technologies; Kevin Gaskell, an international speaker on leadership and business performance; Deloitte CEO David Sproul; and Nancy Yammout, general director of the NGO Rescue Me. The session was moderated by Lebanese journalist and politician Naufal Daou.