Holiday Inn owner IHG sees signs of recovery in July as consumers book staycations
Holiday Inn owner Intercontinental Hotels Group (IHG) said it had seen an uptick in bookings in July as holiday makers opt for staycations during the coronavirus pandemic.
The figures
IHG, which also owns the Crowne Plaza, Regent and Hualuxe hotel brands, saw revenue more than halve to $488m in the first six months of 2020.
Operating profit plummeted 82 per cent to $74m, and adjusted earnings per share plunged 90 per cent to 14.3 cents.
Revenue per available room fell 52 per cent in the first half, driven by a 75 per cent slump in the second quarter, at the height of lockdowns around the world.
Why it’s interesting
IHG was forced to close 15 per cent of its global portfolio by the end of April, improving to ten per cent at the end of July.
There have been “small but steady” improvements in hotel room revenues in July, improving to a 58 per cent year-on-year decline compared to a 75 per cent drop in the second quarter.
“Performance steadily improved through the second quarter, driven by increases in domestic travel demand in countries that have lifted restrictions, including the US, where our performance has been ahead of the industry through the initial stages of the recovery,” IHG said in a statement.
What IHG said
Chief executive Keith Barr said: “The impact of this crisis on our industry cannot be underestimated, but we are seeing some very early signs of improvement as restrictions ease and traveller confidence returns.
“Whilst the near-term outlook remains uncertain and the time period for market recovery is unknown, we are well positioned with preferred brands in the largest markets and segments, a leading loyalty platform and one of the most resilient business models in the industry.
“This gives us confidence in our ability to meet the needs of our guests and owners, and to emerge strongly when markets recover.”