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IHG posts Q3 results, group RevPAR down 21% vs 2019

10/25/2021| 6:30:55 PM| 中文

Increases in Covid-19 cases and the reintroduction of temporary restrictions resulted in RevPAR weakening to a 55% decline in August in Greater China.

InterContinental Hotels Group PLC published its 2021 Q3 trading update. 

Highlights

• Significant improvement in trading, leading to Q3 group RevPAR (21)% vs 2019 (+66% vs 2020)

• Average daily rate attained in line with 2019 levels; occupancy of ~60% achieved

• Gross system growth of +5.2% YOY; opened 12.3k rooms (79 hotels) in Q3; opened 29.6k YTD, +30% vs 2020

• Review of around 200 Holiday Inn and Crowne Plaza hotels on track; over 90 hotels exited already or with an exit

confirmed, and more than 40 committed to improvement plans or scopes of work

• Of 26.5k rooms removed YTD, 17.1k relate to Holiday Inn and Crowne Plaza in Americas and EMEAA

• Net system growth flat YOY (+1.9% excluding the SVC portfolio termination in Q4 2020)

• Global system of 889k rooms (6,031 hotels); 68% across midscale segments, 32% across upscale and luxury

• Signed 12.6k rooms (91 hotels) in Q3; signed 45.2k YTD, +13% vs 2020; global pipeline 270k rooms

• Fee business cost savings of ~$75m vs 2019 on track and sustainable in future years whilst still investing for growth

• Additional temporary cost savings in 2021 of ~$25m

Regional performance

For Americas, Q3 RevPAR was down 10% vs 2019 (up 76% vs 2020). US RevPAR was down 7% vs 2019. Across the region, occupancy was 66%, up from 60% in the prior quarter. Holiday Inn Express saw occupancy rise to 70%, while our Extended Stay brands achieved 80%, exceeding 2019 levels. Demand was particularly strong over the peak summer vacation period in July, across our near-3,000 US hotels in non-urban locations, RevPAR was up 2% vs 2019. Across our US franchised estate, which is weighted to domestic demand in upper midscale hotels, Q3 RevPAR declined by 4% vs 2019; the US managed estate, weighted to upscale and luxury hotels in urban locations, declined by 31%. We have continued to see more group activity and corporate bookings in recent months; during September, there was sequential weekly improvement in demand, with particular strength from construction, logistics and technology business customers. 

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TAGS: IHG | financial results | Greater China | America
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