(Alliance News) - InterContinental Hotels Group PLC said on Friday its revenue per available room surged in the first quarter compared to the previous year as trading improved in the Americas and in Europe, the Middle East and Africa regions.
For the three months ended March 31, RevPAR- a key metric in the hotel industry - was up 61% from the first quarter of last year. Versus the same period in 2019, however, it was down 18%.
Holiday Inn-owner InterContinental Hotels Group said it seen positive trading conditions in the first quarter with travel demand continuing to increase in almost all of its key markets around the globe.
First quarter average daily rate - which measures the average rental revenue earned for an occupied room per day - was up 27% from a year before.
IHG said Americas and EMEAA regions saw sequentially improved trading in February and March after a challenging January. However, in Greater China, trading in March was hurt by the tightening of localised travel restrictions following a spike in Covid-19 cases.
In Greater China, first-quarter RevPAR was down 7% from the first quarter of 2021 and down 42% from the same period in 2019.
The group opened 6,600 rooms in the first quarter and 885,000 rooms globally, with 68% of them across midscale segments, and 32% across upscale and luxury segments.
They also signed 16,600 rooms in the first quarter, which is 15% more than 2021 and 2020, increasing global pipeline to 278,000 rooms.
Chief Executive Officer Keith Barr said: "We've seen very positive trading conditions in the first quarter with travel demand continuing to increase in almost all of our key markets around the world.
"The high level of demand we have seen for leisure travel continues to drive increased rates and occupancy. We also continue to see a return of business and group travel, further supporting RevPAR improvements in many of our key urban markets."
In the Americas, demand was boosted by a strong spring break vacation period, with leisure rooms revenue 10% higher than 2019 for the quarter overall.
The company also announced the retirement of Non-Executive Director Ian Dyson from the IHG board, and the appointment of Byron Grote as non-executive director, who will succeed Dyson as chair of the Audit Committee from March 1, 2023 upon his retirement.
InterContinental Hotels shares were down 0.9% at 4,933.00 pence each on Friday morning in London.
By Xindi Wei; xindiwei@alliancenews.com
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InterContinental Hotels (IHG)
