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IHG quarterly room revenue growth accelerates on China demand

InterContinental Hotels Group Plc’s (IHG) second-quarter room revenue growth accelerated, helped by higher demand in China, it said on Tuesday.

Despite trade war fears putting pressure on the Chinese stock market and a sliding yuan, Barr was sanguine on China, the hotel groups’ second-largest market after the U.S. He described this as owing to China’s robust domestic consumer market, which constitutes a much larger portion of revenue than international customers do.

“Principally our businesses are domestic businesses,” Barr said. “What drives performance there principally is domestic travel. International inbound has a very, very small impact on overall performance too. It’s incredible to see the infrastructure development, the movement toward a consumption-based economy, and the levers that the Chinese government can pull to drive performance in GDP is unlike most countries in the world. So we are fairly confident in China.”

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