Vacation Inn-owner IHG’s shares drop as finance chief checks out

Oct 21 (Reuters) – Vacation Inn proprietor IHG’s (IHG.L) finance chief Paul Edgecliffe-Johnson is leaving to affix bookmaker Flutter Leisure (FLTRF.L), the lodge group mentioned on Friday, disappointing buyers who had praised his efficiency throughout the pandemic.

Shares in IHG fell 3.7% by 0755 GMT, with analysts at Citi calling Edgecliffe-Johnson’s departure after eight years as CFO “disappointing”.

Edgecliffe-Johnson, 50, who has been with IHG for nearly 20 years and led the group by means of the worst of the pandemic, will be a part of Flutter Leisure in early 2023.

Flutter’s London-listed shares had been up marginally.

Information of his exit overshadowed IHG’s third quarter outcomes, which confirmed group room income (RevPAR) in July-September exceeded pre-pandemic ranges for the primary time, leaping 28% from a 12 months early and got here in 2.7% greater than the identical interval in 2019.

IHG, which additionally owns Crowne Plaza, Regent and Hualuxe, mentioned occupancy ranges remained under 2019 ranges within the quarter, however the common each day charge was up 11% versus 2019.

Resort operators are benefiting as individuals spend extra on journey and guide longer lodge stays, lifting occupancy charges and costs, though they’re dealing with dangers from cussed inflation and a cost-of-living disaster that forged a cloud over winter demand.

“The business is experiencing decrease ranges of recent lodge opening exercise, and with a specific affect from the restrictions in China,” Chief Govt Keith Barr mentioned in an announcement.

RevPAR within the third quarter in China was down 20% from 2019 ranges, whereas the UK was up 7% in the identical interval and Americas, its largest areas, was up 6.8%.

London’s Heathrow airport warned of a potential slowdown in journey demand this winter, whereas main airways mentioned demand for journey was holding up.

Resort costs will hold rising in 2023 in a lot of the key cities for enterprise occasions worldwide, although at a slower tempo as a result of a worsening financial outlook, American Categorical World Enterprise Journey mentioned earlier this month.

Reporting by Radhika Anilkumar in Bengaluru; further reporting by Amna Karimi; Enhancing by Sherry Jacob-Phillips and Susan Fenton

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