InterContinental Hotels First-Quarter Profit Gains On China

　　InterContinental Hotels Group Plc (IHG), the world’s largest provider of hotel rooms, reported a 5.4 percent increase in first-quarter earnings, helped by increased revenue per room in China and the U.S.

　　Operating profit rose to $118 million, the Denham, England- based company said today. That beat the $114.4 million average estimate of 11 analysts surveyed by Bloomberg. Sales climbed 3.3 percent to $409 million compared with a $407.3 million average estimate of 10 analysts.

　　InterContinental is benefiting from rising demand in emerging markets such as the greater China region, which accounts for about 13 percent of group revenue. About a third of the 174,554 rooms in the company’s development pipeline are in the region. Global revenue per available room gained 7 percent in the quarter amid a recovery in business and leisure travel.

　　“The global economic backdrop, particularly in Europe, is still challenging, but the considerable strengths of our business including our resilient model and strong balance sheet give us confidence that we will continue to drive high-quality growth,” Chief Executive Officer Richard Solomons said in the statement.

　　InterContinental Hotels fell 2.5 percent to 1,465 pence in London trading yesterday. The shares have risen about 27 percent this year.