InterContinental Hotels, the owner of the Holiday Inn and Crowne Plaza brands, said first-half earnings rose as a resilient US market made up for slowdowns in other regions including the Middle East.
Overll operating profit before one-time items climbed 2.1 per cent to US$344 million, with gains in the Americas driving growth. The Americas region accounts for more than half of InterContinental’s sales.
Profit beat a $332.9m average estimate by seven analysts in a Bloomberg survey. Revenue fell 8.4 per cent to $838m after the company sold properties in Paris and Hong Kong.
In the Middle East, revenue per available room was down 8 per cent due to the ongoing impact of low oil prices, the England-based company said on Tuesday.
“Despite the uncertain environment in some markets, we remain confident in the outlook for the remainder of the year,” said the chief executive Richard Solomons.
Demand for European hotel rooms has been hit by traveller uncertainty in the wake of terrorist attacks in France and an attempted coup in Turkey. Accor, Europe’s biggest hotel operator, said last week that first-half profit fell 4 per cent partly due to its French business.
Operating profit in Europe fell 5.6 per cent to $34m – hurt partly by the sale of the InterContinental Paris Le Grand last year – with revenue per available room in Paris dropping 19.5 per cent. In the Americas, profit rose 6.1 per cent to $313m.
“Favourable economic fundamentals and historically modest levels of new supply in the US continue to support growth in our largest region, where demand continues to be at an all-time high,” InterContinental said.
The company said it is increasing its interim dividend by 9 per cent to 30 cents per share.
The United Kingdom’s vote to leave the European Union may help InterContinental achieve administrative savings, it said.
“With a substantial proportion of our central costs denominated in sterling, we would even benefit at a profit level if the post-referendum sterling exchange rate is maintained,” the company said, noting that only a small portion of its hotels are located in the UK.
InterContinental, which has about 750,000 rooms in about 100 countries, lost its ranking as the world’s biggest hotel company after a wave of consolidation created increasingly large competitors. Marriott International completed its acquisition of Starwood Hotels & Resorts Worldwide this year, and Accor bought the owner of the upscale Fairmont, Raffles and Swissotel brands.
Investors spent $85 billion on hotel deals last year, 50 per cent more than in 2014, according to data compiled by Jones Lang LaSalle. InterContinental conducted talks with financial advisers about whether to sell itself or combine with a competitor, people with knowledge of the matter said in November.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Director: Dean Fleischer Camp
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England's all-time record goalscorers:
Wayne Rooney 53
Bobby Charlton 49
Gary Lineker 48
Jimmy Greaves 44
Michael Owen 40
Tom Finney 30
Nat Lofthouse 30
Alan Shearer 30
Viv Woodward 29
Frank Lampard 29
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Results
1. New Zealand Daniel Meech – Fine (name of horse), Richard Gardner – Calisto, Bruce Goodin - Backatorps Danny V, Samantha McIntosh – Check In. Team total First round: 200.22; Second round: 201.75 – Penalties 12 (jump-off 40.16 seconds) Prize €64,000
2. Ireland Cameron Hanley – Aiyetoro, David Simpson – Keoki, Paul Kennedy – Cartown Danger Mouse, Shane Breen – Laith. Team total 200.25/202.84 – P 12 (jump-off 51.79 – P17) Prize €40,000
3. Italy Luca Maria Moneta – Connery, Luca Coata – Crandessa, Simone Coata – Dardonge, Natale Chiaudani – Almero. Team total 130.82/198.-4 – P20. Prize €32,000
