27th Apr 2020 09:06
(Alliance News) - InterContinental Hotels Group PLC on Monday said it expects a decline in first quarter revenue as it announced new financing arrangements to strengthen its liquidity amid the Covid-19 pandemic.
Shares in the Holiday Inn and Crowne Plaza Owner were 4.9% higher at 3,526.84 pence each on Monday morning in London.
The hotel owner said it expects to report that, globally, revenue per available room fell 25% in the first-quarter due to travel restrictions and government-enforced lockdowns. It said that trading in Greater China continues to steadily improve, with only 12 out of 470 hotels now closed. In the US, only 10% of hotels are currently closed, demonstrating "the resilience of our mainstream, franchised business". In Europe Middle East Africa and Asia, 50% of hotels remain closed.
Separately, IHG said it has amended its revolving credit facility to include a waiver of existing covenants until the end of 2021 and to introduce a minimum liquidity covenant of USD400 million until June 30, 2021. It added that it has issued GBP600 million in commercial paper under the UK Government's Covid Corporate Financing Facility.
IHG said it now has access to USD1.35 billion of cash on deposit with existing bank facilities of USD660 million currently undrawn, taking its total available liquidity to USD2 billion.
By Ife Taiwo; [email protected]
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