IHG Ramps Up Hotel Reopenings; Posts 76% Drop In May Room Revenue
InterContinental Hotels Group (IHG) Plc has posted a 76% slump in average room revenue for May due to coronavirus lockdowns, which is a slight improvement from April, as the Holiday Inn-owner accelerates the reopening of its properties.
The UK-based company said that comparable revenue per available room (RevPAR), a key gauge of performance for the hotel industry, is expected to fall 75% for the second quarter overall. It reported an 80% slump in RevPAR in April.
However, IHG, which operates Crowne Plaza, Regent and Hualuxe chain of hotels, said that the pace of reopening has continued to accelerate through the second quarter, with only 10% of the global estate currently still closed.
"The small but steady improvements in RevPAR through the second quarter are mostly attributed to the Americas franchised estate and the Greater China region," IHG said.
Occupancy levels have improved to over 40% in the United States, it added.
Shares in IHG, which have skidded 31% so far this year, were down 1% by 0711 GMT on Tuesday June 30.
The Biggest Challenge The Hotel Industry Has Ever Faced
IHG has said that the coronavirus crisis is the biggest challenge the hotel industry has ever faced, with travel drawing to a near halt amid strict lockdowns to contain the spread of the disease.
IHG said that it had $2 billion in available liquidity as of June 26.