23rd Oct 2020 09:23
(Alliance News) - InterContinental Hotels Group PLC said Friday it has seen a quarterly improvement in revenue per available room but noted this was still significantly lower than a year prior.
For its third quarter ended September 30, the FTSE 100-listed hotel operator stated its decline in RevPAR eased to 53% compared to 75% in the second quarter, leaving the year-to-date figure down 52%.
Occupancy climbed to 44% from 25%. A total of 199 hotels, or 3% of the group's estate, remained closed as at September-end
"Trading improved in the third quarter, although progress continues to vary by region. Domestic mainstream travel remains the most resilient, and our industry-leading Holiday Inn brand family positions us well to meet that demand as it slowly returns," said Chief Executive Officer Keith Barr.
The Holiday Inn and Crowne Plaza owner said that, by region, RevPAR fell 50% in the Americas, 70% in Europe, Middle East, Asia & Africa and 23% in greater China.
Looking ahead, Intercontinental Hotels said it is on track to reduce fee business costs by around USD150 million in 2020, adding that it is targeting half this level to be sustainable into 2021.
Total available liquidity as at the end of September was USD2.9 billion.
Shares in IHG were trading 0.7% lower at 4,235.00 pence each on Friday morning in London.
By Ife Taiwo; [email protected]
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