Holiday Inn chief steps down as group sees bookings hike despite ‘economic tailwinds’
The chief of Holiday Inn owner International Continental Hotels (IHG) is to step down from the helm after nearly six years.
Keith Barr, group chief executive officer of the global hotel chain will be succeeded by Elie Maalouf, who currently heads up its American operations.
Barr has worked within the brand for almost 14 years, joining first as a chief executive officer for greater China, before taking on the role as head of the brand in 2017, where he oversaw the opening of more than 6,000 hotels, across the world.
Barr said: “I am proud of the strong position that IHG is in today, thanks to the investments we have made to transform every aspect of our business, deliver for our guests and owners, and grow and operate our brands in the right way around the world.”
He will step down from the role in June when he will return to America to be with his family.
Holiday Inn post Covid-19
It comes as the Holiday Inn owner informed investors this morning of its performance in the first leg of the year, with RevPAR, the tool hoteliers use to measure the value of each room, up 33 per cent across the group vs 2022 levels.
As the market fully recovered from Covid-19 and travel picked up revenue per room up was also up 12 per cent in the UK.
Across its EMEMAA offering, the budget and luxury hotel operator added 26 hotels to its pipeline pushing growth up 8 per cent year on year.
Barr, said: “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.”
Holiday Inn and IHG portfolio expansion
Micky Yang, corporate partner at Gowling WLG, said: “As the travel sector has continued to recover from the pandemic and consumer demand for hotel beds increases, InterContinental Hotels Group has benefitted from an expanding portfolio and from investing in brand loyalty and technology platforms to drive revenue growth through a focus on improving RevPAR and occupation rates.
She added: “The efforts of competitors to recover from a difficult period and similarly thrive will doubtlessly be in focus, particularly with the cost-of-living crisis and inflationary pressures impacting consumer spending. Shareholders will want to see this success sustained and the rise in revenue converted into profit after the downturn during the pandemic as the hospitality sector rebounds.”
Travel boost
IAG saw operating profit of €9m in the first quarter, gaining significant benefits from the fall in the fuel price.