InterContinental Hotels Group (IHG) has released a trading update for the three months to September 30, 2020, revealed that the group's revenue per available room (RevPAR) decreased by 53.4% during the third quarter of the year and has decreased by 52.3% during the year to date.
IHG stated that its Q3 RevPAR reflects a 30% year-on-year reduction in occupancy.
IHG's occupancy improved to 44% during Q3 2020 from 25% in Q2.
Americas, Europe, Australia, Middle East And Greater China
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IHG's RevPAR in the Americas decreased by 49.8% in Q3, while its occupancy was 46%, up from 28% in Q2. IHG's US RevPAR specifically was down 47.3% during Q3.
Meanwhile, IHG's RevPAR in Q3 was down 72% in Europe, 66% in Australia and 65% in the Middle East, while overall occupancy was 31%.
In Greater China, IHG's RevPAR was down 23% in Q3 while occupancy was 57%, up from 32% in Q2.
Cash Flow, Liquidity And Room Openings And Signings
IHG also said that that it had positive cash flow in Q3, leading to its total available liquidity increasing to $2.1 billion at end the of September, and that, after the issuance of new bonds and the partial repayment of 2022 bonds in early October, on a pro forma basis, its liquidity increased further to $2.9 billion.
Additionally, IHG opened 11,000 new rooms in Q3, bringing the total number of rooms that it has opened during 2020 to date to 23,000. The group also signed a further 14,000 rooms during the year's third quarter, bringing the total number of rooms that it has signed this year to 40,000.
"A Full Industry Recovery Will Take Time"
IHG CEO Keith Barr stated, "Trading improved in the third quarter, although progress continues to vary by region. RevPAR declined 53%, compared to a 75% decline in the prior quarter, while occupancy was 44%, up from 25% in Q2. 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."
Barr added, "A full industry recovery will take time, and uncertainty remains regarding the potential for further improvement in the short term, but we take confidence from the steps taken to protect and support our owners and drive demand back to our hotels as guests feel safe to travel. Our actions have resulted in ongoing industry outperformance in our key markets, and we remain focused on leveraging the strength of our brands, scale and market positioning to recover strongly and drive future growth."
© 2020 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.