New owner of Four Seasons hotel beats estimates

InterContinental Hotels Group boosts revenue per room by 6.1 per cent

InterContinental Hotels Group reported 2014 profit that beat analyst estimates as the owner of the Holiday Inn and Crowne Plaza brands boosted revenue in the Americas.

The hotel chain took over Dublin’s Four Seasons hotel in December 2014 and also operates the Holiday Inn, Holiday Inn Express and Crowne Plaza brands in Ireland.

Adjusted earnings per share was unchanged from last year at 158.3 cents, the Denham, England-based company said in a statement Tuesday.

Analysts predicted 155.6 cents, the average of 23 estimates compiled by Bloomberg. Revenue per available room, an industry measure of occupancy and rates known as revpar, increased by 6.1 per cent.

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InterContinental in December agreed to buy the Kimpton Hotels and Restaurants for $430 million, gaining a boutique chain with high-end properties in cities across the US The purchase will add 62 properties in 28 cities, an exception to the company’s decade-long strategy of reducing the amount of property it owns.

"We expanded our brand portfolio and strengthened our position in boutique hotels, the fastest growing segment in the industry over last five years," chief executive officer Richard Solomons said in the statement.

Full-year revenue declined 2.4 percent to $1.86 billion. Net income climbed to $391 million from $372 million a year earlier.

Bloomberg