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IHG posts profit jump and dividend hike in H1

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Shares rise 4% - ending 4-day losing streak

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China RevPAR down 7%, US up 2.5% in Q2

(Adds shares in paragraph 2, comment on China in paragraph 3,

Marriott ( MAR ) background in paragraph 6)

Aug 6 (Reuters) - Holiday Inn-owner InterContinental

Hotels Group reported a 3.2% rise in revenue per

available room in the second quarter as a strong rebound in the

United States offset weakness in China.

Shares in IHG, which have been pressured in the past week

after a warning from U.S. rival Marriott ( MAR ) and U.S. recession

fears, rose 4% in early trade.

IHG, which also owns the Crowne Plaza, Regent and Hualuxe

hotel chains, said the industry has seen a shift in pattern of

demand this year from domestic tourism in China to overseas

travel to other Asia Pacific countries.

Growth in revenue per available room (RevPAR), a key

performance measure for the hotel industry, picked up in the

second-quarter from 2.6% in the first three months, IHG said.

"RevPAR growth accelerated in the latest quarter, reflecting

a strong US rebound in Q2 and the breadth of our global

footprint, and development activity continues to increase," CEO

Elie Maalouf said in a statement.

Bigger rival Marriott International ( MAR ) last week

lowered its forecast for 2024 room revenue growth, citing softer

domestic travel demand in China and North America. The warning

from Marriott ( MAR ) had also sent IHG shares tumbling on the day.

The hotel industry has benefited from higher demand and

pricing as leisure travel rebounded from the pandemic, but it

has had to contend with weakness in China and funding issues

holding back new hotel developments in the U.S.

IHG's RevPAR in China dropped 7% in the second-quarter,

while it grew 2.5% in the United States after a 1.9% drop in the

prior three months.

IHG raised its interim dividend by 10% and reported an

operating profit from reportable segments of $535 million for

the first-half, up 12%.

IHG did not give an annual RevPAR forecast but said that a

"very busy" second quarter, which saw 23% more new hotel

signings, is keeping it on track for its expectations of net

system size growth - the number of new rooms opened minus those

that are closed.