Intercontinental Hotels reports slump in Q3 revenue as pandemic dents occupancy

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Intercontinental Hotels reported a slump in third-quarter room revenue amid a pandemic-led hit to occupancy, though the hotel chain did see improved quarterly performance.

Third-quarter revenue per available room, or RevPAR, fell 53.4% year-on-year as occupancy fell 30%.

RevPAR in the Americas was down 49.8% in Q3, down 70.4% in Europe, Middle East & Africa and down 23% in Greater China.

Intercontinental Hotels opened 82 hotels year-to-date, and signed agreements to open a further 82 hotels, with its total pipeline standing at 1,899 hotels.

The company said performance had improved quarter-on-quarter as the 53% decline in Q3 RevPAR, compared with a 75% decline in the prior quarter, while occupancy was 44%, up from 25% in Q2.

'We remain on track to reduce Fee Business costs by ~$150m in 2020 and with our target for around half of this level to be sustainable into 2021, whilst continuing to invest appropriately in growth initiatives,' it added.

At 8:11am: (LON:IHG) Intercontinental Hotels Group PLC share price was -22.5p at 4240.5p