After 23 years with IHG Hotels & Resorts, Keith Barr will step down as CEO on July 1 and hand the reins to Elie Maalouf, currently the firm's CEO of the Americas.
Barr, who oversaw his final quarterly earnings results for the British hotel firm, informed the board that he wishes to return with his family to his native U.S. He will remain in the position until the handover.
Barr’s time at IHG has been storied. He began his tenure as CEO in July 2017, and he has been on the company’s board since 2011.
Barr has been at IHG since 2000 in the roles of CEO of the Americas; CEO of Asia, Middle East and Africa; vice president of operations for the midscale segment in North America; vice president of operations for Holiday Inn in North America; chief operating officer in Australia, New Zealand and South Pacific; and, for the four years before he took over as CEO, chief commercial officer.
Maalouf, also on the board, has been in his current role since 2015. He will relocate to the United Kingdom.
Maalouf was not on the earnings call, but it was the debut of Michael Glover, who started in the role of chief financial officer on March 20, following the exit of Paul Edgecliffe-Johnson, the firm’s long-time chief financial officer and head of group strategy.
Glover has been at the firm for almost two decades.
Speaking on the call to present first-quarter earnings, Barr said IHG has started the year strong.
IHG’s revenue per available room for the first quarter grew 33% compared with the same period in 2022, boosted by increases of 75% in Greater China, 64% in Europe, Middle East, Africa and Asia, and 18% in the Americas, where the industry recovered after the COVID-19 pandemic the quickest.
Barr said in a news release that the results reflect "continued strong trading in both the Americas and EMEAA and an excellent rebound in demand in Greater China since the lifting of travel restrictions."
Glover said average daily rate increased 10% against 2019 numbers and that occupancy had almost returned to its level in that full year.
In addition to continuing strong leisure demand, there has been an increase in business and group travel, although Barr said group demand still lags 2019 levels by 12%.
Barr said the firm was aware of current "economic uncertainties and financing challenges … but improvements are expected as the year continues."
Glover said in the U.S. revenue from business travel was flat year over year, which he added was excellent performance considering the segment’s recent history of lagging far behind leisure demand.
In Europe, the return of group and leisure demand is notable, with many trade fairs having returned, Glover said. Hotel signings were also robust in Europe, especially in the luxury and lifestyle category.
In other news from the firm this week, IHG signed a memorandum of understanding with the Saudi Tourism Authority, which, according to a news release, “provides a framework for both entities to explore methods to increase inbound visitation to Saudi Arabia from key markets across [the] Middle East and Africa region.”
On Thursday, IHG announced it would open its first Kimpton Hotels & Restaurant’s hotel in the Middle East in Riyadh, Saudi Arabia, via a management agreement with the King Abdullah Financial District Management & Development Company, a subsidiary of Saudi Arabia’s Public Investment Fund. The hotel will open in June 2024 and have 212 rooms.
In total, IHG now has more than 1.2 million rooms in operations and in its development pipeline. Sixty-six percent of opened rooms are in the midscale segment.
In the first quarter, IHG opened 45 hotels and more than 8,000 rooms and signed 108 hotels and more than 16,500 rooms, a 3.3% year-over-year increase in its portfolio.
As of press time, IHG stock was trading at 54.12 pounds sterling ($68.06) a share, an increase of 8.8% year over year. The London Stock Exchange’s FTSE 100 index was up 3.3% over the same period.