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InterContinental Hotels Group warned of a deeper slump in revenue per room in April after occupancy levels dropped to 'historic lows' in March and April as Covid-19 containment measures hurt performance.
In the first quarter, comparable revenue per available room, RevPAR, was down 24.9% after falling 55% in March and was expected to be down around 80% in April, the company said.
Occupancy levels in comparable open hotels fell to the low-to-mid 20% range, the company said.
'Following a solid performance in the first two months of 2020, occupancy levels dropped to historic lows in March and April, as social distancing measures and travel restrictions came into effect around the world,' the company said.
'In the US, our biggest market, our franchise portfolio of 3,750 mainstream hotels has seen lower levels of RevPAR decline than the industry, and as at the end of April we had about 90% of our estate open,' it added. 'Our business is also weighted towards non-urban markets that are less reliant on international inbound travel and large group meetings and events, which provides a level of resilience during this difficult period.'
The company signed 14,000 rooms in the quarter, including 4,000 in March, taking the pipeline to 288,000 rooms.
Looking ahead, the company said anticipated continued disruption to travel in the coming months, warned forward visibility on the timing and shape of improvements in demand remained very limited.
'We are though still seeing hotel openings including the Regent Shanghai Pudong later this month, and great signings such as the InterContinental in Rome. Progress also continues around the world to build upon the launches of our avid, voco and Atwell Suites brands,' IHG said.