IHG's tentative recovery driven by China

InterContinental Hotels Group (IHG.NYSE, IHG.LSE) said first-quarter revenues were up 3% to US$362 million, a tentative recovery that’s largely been driven by China, the Financial Times reported. This is the hotel group’s first report of an uplift in revenue per available room in 18 months. Operating profit was also up 15%. IHG’s shares were in part boosted by upbeat numbers in the lodging sector, while the industry tries to recover from a tough 2009 by utilizing rate-cutting promotions. Global revenue per available room (revpar), the benchmark indicator for the lodging industry, grew 0.2% in the first quarter and April’s global revpar showed a 5.2% climb. Greater China revpar increased 22.2%, while Asia Pacific outperformed other regions, posting a 10% revpar rise. In comparison, the Americas saw a 1.9% fall in revpar; the decline in rates was not offset by a small rise in occupancy.