Three things you need to know as the UK financial markets open, from Tony Cross.
#1. IHG’s global footprint offers support as RevPAR plummets in China
Intercontinental Hotels LON:IHG, the hotel operator behind names like Holiday Inn and Crowne Plaza, has this morning published its Q3 trading update. Room rates are still increasing at a global level, but momentum is definitely lagging with RevPAR up just 1.5%, notably hit by a 10.3% decline in China, with strong comparatives weighing.
Development performance was also notable with 17.5k rooms opening, around double the number seen in Q3 ’23. Shareholder returns remain on track for the full year and market expectations are still set to be met. That geographic diversification is boding well.
#2. Mulberry rejects Frasers’ overtures again
Mulberry Group LON:MUL has come back again in response to the Frasers Group LON:FRAS attempt to acquire the business. Management remains of the opinion that such a solution doesn’t offer shareholder value, with today’s news of a capital raise providing further evidence that the business is well-positioned for future growth. There’s less than a week left before Frasers must table a firm offer or walk away from the transaction.
#3. Bar operator The Revel Collective hunts for optimism
The Revel Collective [LON:TRC] – the new name for Revolution Bars – published full year results this morning. The company which came close to being absorbed into Nightcap LON:NGHT earlier in the year reported full year revenues of £149.5m, down from £152.6m in FY ’23. Losses are also climbing but the company notes that following its successful refinancing and bringing experienced management, it is well positioned for future growth. That said there are comments from the CEO that hint at success only being possible with government reform/support. Will that instil confidence amongst investors?
