InterContinental Hotels Group reported significant improvement in demand over the course of H1, resulting in RevPAR (43)% vs 2019 and +20% vs 2020.
Total revenue in the first half of this year was only 1.18 billion, down by 6% YOY.
• Recovery most advanced in Greater China with Q2 RevPAR (16)% vs 2019; continued improvement in the Americas to (26)%; EMEAA still most challenged at (65)%. Regional performance reflects variations in both vaccine rollout progress and travel restrictions
• Group Q2 RevPAR (36)% vs 2019, reflecting occupancy 19%pts lower and rate sustained at 87% of 2019 levels; Q2 occupancy of 53% improved through the quarter; June 69% in the US; 54% Greater China; and 40% EMEAA
• Gross system growth of +5.1% YOY; after removals, including SVC portfolio termination in Q4 2020 and Holiday Inn and Crowne Plaza review in H1 2021, net system size growth +0.1% YOY
• Opened 17.4k rooms (132 hotels) in H1, +46% vs 2020; global estate now at 884k rooms (5,994 hotels)
• Signed 32.6k rooms (203 hotels) in H1, +24% vs 2020; global pipeline now at 274k rooms (1,805 hotels)
Keith Barr, Chief Executive Officer, IHG Hotels & Resorts, said:“It has been great to see our teams welcome more and more guests back into our hotels, with domestic leisure bookings leading the way, particularly in the US and China. ... With occupancy and rate continuing to improve, nearly 50% of our hotels achieved RevPAR above 2019 levels in July.”
“We’re also excited to announce that we’ll soon be launching a new Luxury & Lifestyle collection brand to provide further choice for guests and owners. Over the last four years we’ve added five new brands to create a portfolio of 16, each targeting a specific segment and enhancing our market reach. The addition of a collection brand will provide high quality independent hotels access to the many benefits of IHG’s system, whilst retaining a property’s distinctive identity. There are currently around 1.5 million independently run rooms in the market segments we are targeting, and we expect the collection to attract more than 100 hotels within 10 years.”