The company attributes decline to Ramadan timing and high supply growth
InterContinental Hotel Group recorded a decline in revenue per available room (RevPAR) in the Middle East in its latest Q3 figures.
The hotel giant, which has over 5,000 hotels operating under 12 different brands around the world, reported a 2.3 percent overall increase in its global RevPAR, along with a 4.1 percent growth in net rooms in Q3 2017.
IHG CEO Keith Barr noted that the global growth was the company’s strongest since 2010, and that IHG signed hotels into its pipeline at the fastest third quarter rate since 2008.
In Asia, the Middle East and Africa, RevPAR was up 0.6 percent in Q3, and 1.2 percent Q3 YTD.
In the Middle East alone, however, RevPAR declined 6 percent, which IHG attributed to the timing of Ramadan, the impact of low oil prices and high supply growth.
IHG currently has 80 hotels operating across five of the company’s brands in the Middle East region with a further 27 in the development pipeline.
The strongest RevPAR growth was in the Greater China region (7.8 percent) followed by Europe (7.1 percent) and the Americas (0.8 percent).
"Looking ahead, despite macro-economic and geopolitical uncertainties around the world, we remain confident in the outlook for the remainder of the year,” Barr said in a statement.