InterContinental Hotels Group releases first quarter trading update

There has been an improvement in demand within the first quarter, led by the Americas and Greater China.

InterContinental Hotels Group releases its first quarter trading update. The highlights of the update include:

  • There has been an improvement in demand within the first quarter, led by the Americas and Greater China.
  • The Group RevPAR went down 50.6 per cent vs 2019 (down 33.7 per cent vs 2020); continued industry outperformance in key markets.
  • RevPAR reflects a 23 per cent pts reduction in occupancy, with rate sustained at around 80 per cent of 2019 levels.
  • Occupancy of 40 per cent, improving through the quarter; 223 hotels (4 per cent of estate) closed at 31 March.
  • Net system size growth broadly flat YTD; global estate 884k rooms (5,959 hotels).
  • Opened 7.3k rooms (56 hotels); 5.8k added to Essentials and Suites brands, 1.5k in Premium, Luxury & Lifestyle.
  • Removed 9.5k rooms (61 hotels); 6.3k (31 hotels) for Holiday Inn and Crowne Plaza in Americas and EMEAA.
  • Signed 14.5k rooms (92 hotels), ahead of Q1 last year; total pipeline increased to 274k rooms (1,820 hotels).
  • Repaid £600m UK Government CCFF at maturity; total available liquidity at 31 March of $2.1bn.

Keith Barr, Chief Executive Officer, IHG Hotels & Resorts said, “Trading continued to improve during the first quarter of 2021, with IHG maintaining its outperformance of the industry in key markets and seeing strong performance in openings and signings as we expand our brands around the world. There was a notable pick-up in demand in March, particularly in the US and China, which continued into April. While the risk of volatility remains for the balance of the year, there is clear evidence from forward bookings data of further improvement as we look to the months ahead." 

He further mentioned that the improved Group RevPAR performance was led by the Americas, which strengthened to 43 per cent versus 2019 levels compared to 50 per cent in Q3 and Q4 2020. In EMEAA, the continuation of lockdowns across much of the region meant RevPAR levels were largely unchanged from the prior two quarters. In Greater China, after temporary domestic travel restrictions were lifted, demand recovered quickly in March towards levels seen in the second half of 2020. 

"We opened a further 56 hotels during the quarter, and these new openings broadly offset hotels removed as part of our continued focus on maintaining the highest quality estate for our guests. Linked to this, we are making good progress on our review of the Holiday Inn and Crowne Plaza estates. Our pipeline grew with 92 signings in the quarter, driven by our industry-leading midscale brands and continued strong owner appetite for conversion opportunities, particularly in our Premium and Luxury & Lifestyle categories. This includes conversions to our voco brand, which has achieved over 50 signings in more than 20 countries in fewer than three years since launch," he added.

"As the rollout of vaccines becomes more established, travel restrictions lift, and economic activity rebuilds, traveller demand will continue to grow and generate further momentum in an industry recovery over the course of the year. Coupled with our resilience as a business and the important work we’re doing to support our owners, develop our brands and expand our pipeline, we’re confident that IHG is well positioned for sustained growth,” he concluded.  


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Keith Barr First Quarter Trading Update

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