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(Alliance News) - InterContinental Hotels Group PLC on Friday said its chief executive officer will step down to return to his family in the US, set to be succeeded by the company's Americas CEO, while it said first quarter revenue per available room rose across all regions from a year earlier.
The Windsor, Berkshire-based operator of InterContinental, Holiday Inn and Crowne Plaza hotel chains said Keith Barr's final day as CEO will be June 30, remaining available to the firm until the end of the year.
Elie Maalouf will take up the role as group CEO on July 1, after eight years serving as the firm's Americas CEO. A process is underway to find a successor to the Americas CEO role, IHG said.
IHG said Barr "transformed" the company towards long-term sustainable growth since being appointed CEO in July 2017, "surpassing 6,000 open hotels, broadening the portfolio with the addition of seven brands in six years, significantly investing in IHG's digital capabilities and loyalty offer, embarking on a 10-year responsible business strategy, and progressing in key areas of [diversity, equity and inclusion]".
Barr has worked for IHG for more than 30 years, IHG noted.
The hotel operator said Maalouf has lived and worked internationally across Europe, the Middle East, north Africa and the US, and speaks four languages. Under his leadership for the Americas region, the estate has grown to more than 4,350 hotels from around 3,700, alongside delivering "record profits, overs[eeing] the launch of new brands and formats, and strengthen[ing] how the business drives value for our hotel owners".
CEO designate Maalouf said: "Working closely with Keith and as an executive committee, we've made a number of critical strategic investments in recent years that position us with exciting opportunities to realise IHG's full industry leading potential, by driving the performance and growth of our fantastic brands and delivering strong returns for all our stakeholders."
In a trading update for the first quarter of 2023, IHG said revenue per available room was up 33% from a year earlier. It was up 18% in Americas, up 64% in Europe Middle East Africa & Asia, and up 75% in China.
Compared to the first quarter of 2019, group RevPAR was up 6.8%, Americas was up 11%, while EMEAA was up 9.7%. Lagging however, China RevPar was still below pre-pandemic levels, down 9.1%.
"We've seen a good start to the year, with continued strong trading in both the Americas and EMEAA, and an excellent rebound in demand in Greater China since the lifting of travel restrictions," said outgoing Chair Barr.
"We opened eight thousand rooms across 45 hotels in the quarter, and while financing challenges for the wider commercial real estate industry are holding back new hotel development and opening activity fully returning to normal, we anticipate improving levels as the year progresses.
"Whilst comparatives to 2022 get tougher from the second quarter onwards and there are ongoing economic uncertainties, IHG has continued to prove the resiliency of its business model and we remain confident about the strong tailwinds for attractive long-term, sustainable growth and value creation. We look forward to making additional progress over the course of 2023 in further evolving our brand portfolio, increasing RevPAR and expanding our system size."
IHG said its USD750 million share buyback programme was now 32% complete, having bought back 3.5 million shares so far at an average price of GBP54.71 per share. The programme was announced with its annual 2022 results release in late February.
Shares in IHG were down 2.0% to 5,406.40 pence each in London on Friday morning.
By Greg Rosenvinge, Alliance News reporter
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