30th Jun 2020 09:30
(Alliance News) - InterContinental Hotels Group PLC on Tuesday said it saw a steady improvement in operations over the second quarter of 2020 as Covid-19 lockdowns eased globally.
The FTSE 100-listed operator of Holiday Inn and Crowne Plaza hotels said it expects to report a comparable revenue per available room decline of 75% for the second quarter on a year before, resulting in a 52% fall for the first half.
InterContinental Hotels said revenue per available room decreased by 82% annually in April, 76% in May and the decline in June is estimated at 70%.
The small but steady improvements in revenue per available room through the second quarter are mostly attributed to the Americas franchised estate and the Greater China region. Occupancy levels in comparable open hotels have improved to over 40% in the US.
The second-quarter revenue per available room decline for the Americas region is estimated at 72%, the Denham, Buckinghamshire-based company noted.
The pace of hotels reopening has continued to accelerate through the second quarter, InterContinental Hotels said, with only 10% of the global estate currently still closed. In the Americas region, around 5% are closed.
Good progress has been made across the Europe, Middle East, Africa and Asia region as government-mandated hotel closures have eased, the company said, with around 30% currently remain closed. In Greater China, just 1% of hotels are closed.
As at 26 June, InterContinental Hotels continued to have about USD2 billion in available financial liquidity. The company noted that it remains on track to reduce fee business costs by USD150 million from 2019 levels.
InterContinental Hotels shares were trading 1.4% lower in London on Tuesday at 3,594.00 pence each.
By Evelina Grecenko; [email protected]
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