7th May 2020 10:16
(Alliance News) - InterContinental Hotels Group PLC on Thursday said its performance in the first quarter of 2020 was hurt by the coronavirus pandemic.
The FTSE 100-listed hospitality company reported comparable revenue per available room - a key industry metric - in the three months to the end of March down 25% year-on-year.
In the month of March alone, RevPAR declined by 55%, and IHG said it expects a fall in April to be around 80%, as 15% of the estate was closed as at the end of April.
Meanwhile, occupancy levels in comparable open hotels were in the low-to-mid 20% range, InterContinental Hotels said.
In the US - IHG's biggest market - its franchise portfolio of 3,750 mainstream hotels has seen lower levels of RevPAR decline than the industry as a whole, and as at the end of April it had 90% of its estate open.
During the first quarter of 2020, the company said its net system size grew by 4.6% to 882,000 rooms.
"Covid-19 represents the most significant challenge both IHG and our industry have ever faced," said Chief Executive Keith Barr.
"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," added Barr.
IHG shares were trading 0.9% higher in London on Thursday at 3,464.08 pence each.
By Evelina Grecenko; [email protected]
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