7th May 2021 08:24
(Alliance News) - Hotel operator InterContinental Hotels Group PLC on Friday said trading continued to improve during the first quarter of 2021 and it is seeing a strong performance in openings and signings.
For the three month to March 31, revenue per available room, a key metric in the hotel industry - was down 51% from 2019 and down 34% versus 2020.
IHG noted there was a notable pick-up in demand in March, particularly in the US and China, which continued into April.
In Greater China, after temporary domestic travel restrictions were lifted, demand recovered quickly in March towards levels seen in the second half of 2020, IHG added.
Occupancy levels for IHG remained low at 40% as at March 31 but were improving through the quarter. Levels were particularly strong in the US, with the 46% occupancy rate not higher since the first three months of 2020.
A GBP600 million coronavirus loan was repaid to the UK government, leaving the firm with available liquidity of USD2.1 billion at the end of the period, IHG said.
"Trading continued to improve during the first quarter of 2021, with InterContinental Hotels maintaining its outperformance of the industry in key markets and seeing strong performance in openings and signings as we expand our brands around the world...While the risk of volatility remains for the balance of the year, there is clear evidence from forward bookings data of further improvement as we look to the months ahead," said Chief Executive Keith Barr.
"We opened a further 56 hotels during the quarter, and these new openings broadly offset hotels removed as part of our continued focus on maintaining the highest quality estate for our guests.
"Our pipeline grew with 92 signings in the quarter, driven by our industry-leading midscale brands and continued strong owner appetite for conversion opportunities, particularly in our Premium and Luxury & Lifestyle categories," Barr added.
Shares in InterContinental Hotels were up 0.1% at 5,048.00 pence each in London, early on Friday morning.
By Will Paige; [email protected]
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