Holiday Inn-owner Intercontinental Hotels Group (IHG) has struck an agreement with its creditors to extend waivers of its debt covenants through the end of 2022, the company said in a statement.
The move by IHG to shore up its finances comes as the hotel industry faces a plunge in travel demand due to the COVID-19 pandemic, forcing it to adjust its interest cover and leverage ratios and boost efforts to maintain minimum liquidity of $400 million until December of 2022.
All, including Europe's biggest hotel group Accor and Premier-inn owner Whitbread, have taken steps to cut costs and lower their workforce in a bid to ride out the crisis.
IHG and others, however, had signalled occupancy levels were improving, ahead of the most recent lockdowns in Europe.
IHG, the brands of which also include the Crowne Plaza, Regent and Hualuxe hotel chains, experienced a 53.4% fall in revenue per available room (RevPAR) in the third quarter, smaller than the 75% drop in the prior quarter.
It is yet to report results for the final quarter.