Hotel group positive despite room rate dip

Holiday Inns owner InterContinental Hotels revealed slower growth in Revenue Per Available Room (RevPAR), a key measure of performance, in the third quarter.

RevPAR grew 1.3% in the third quarter, reducing the growth rate to 1.8% in the first nine months of the year from 2% in the first half.

Third-quarter RevPAR was up 1.9% in the Americas but was flat in Europe.

Excluding Greater China, RevPAR in the third quarter in the Asia, Middle East and Africa region was down 0.1%, although performance in the Middle East was strong.

The group expects foreign exchange fluctuations to have an impact on 2016 reported profit.

IHG chief executive Richard Solomons said: “The fundamentals for the sector, and particularly for IHG, remain compelling.”

Dundee’s Holiday Inn Express.