(Alliance News) - InterContinental Hotels Group PLC said Friday its trading continues to improve significantly, with its revenue per available room creeping closer towards pre-pandemic levels.
Shares in the hotel operator - which owns brands such as Holiday Inn and Crowne Plaza - were 1.9% lower in London on Friday morning at 4,901.00 pence each.
IHG reported third-quarter RevPAR, a key hospitality metric, growth of 66% on a year ago, though it remained down 21% on 2019. In its half-year results, IHG reported RevPAR up 20% on 2020 and down 43% on 2019.
In the Americas, RevPAR was up 76% on 2020 and down 10% on 2019, with US RevPar down just 7% on pre-virus levels. In Europe, Middle East, Africa & Australia, RevPAR was down 43% on 2019.
In greater China, RevPAR was down 30% on 2019, with IHG noting that in July, this was down just 6% due to strong domestic leisure demand. However, a resurgence in Covid cases in August saw RevPAR weaken to a 55% decline in August, though the recovery resumed once more in September.
IHG didn't provide its actual RevPAR figures, only percentage changes.
"While we remain vigilant to fluctuating Covid restrictions in different markets, the pace of returning demand is very encouraging as travel increasingly re-opens in every region," said Chief Executive Keith Barr.
He continued: "Domestic leisure demand was particularly strong in a number of markets over the summer, where occupancy and rate climbed back to 2019 levels. Discretionary business travel, group bookings and international trips have also shown increasingly encouraging signs, on top of continuing good levels of essential business demand.
"We continue to grow rapidly, opening 79 hotels in the quarter and signing another 91 in to our pipeline of 1,800 properties, and we expect development activity to pick up further over the remainder of the year."
A review of about 200 Holiday Inn and Crowne Plaza hotels remains on track, with more than 90 hotels exited already or with an exit confirmed and more than 40 committed to improvement plans.
By Paul McGowan; paulmcgowan@alliancenews.com
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InterContinental Hotels (IHG)
