Hotel Brands

IHG sees RevPAR increase 66%

The company opened 12,300 rooms across 79 hotels in Q3, and opened 29,600 rooms year to date

IHG Hotels and Resorts has seen a “significant improvement” in trading, leading the group’s Q3 revenue per available room (RevPAR) to increase by 66% compared to 2020, and by 21% compared to 2019.

The company’s fee business cost savings were reportedly $75m (£54.5m) compared to 2019, making IHG Hotels and Resorts “on track and sustainable in future years whilst still investing for growth”, said IHG.

The company also saw an additional temporary cost savings of $25m (£18m) in 2021.

IHG Hotels and Resorts’ gross system growth also reportedly went up by 5.2% year over year (YOY). The company opened 12,300 rooms across 79 hotels in Q3, and opened 29,600 year to date (YTD), which went up 30% compared to 2020 levels.

The global system of 889,000 rooms across 6,031 hotels went up by 68% across midscale segments, and 32% across upscale and luxury.

Additionally, the average daily rate attained by IHG Hotels and Resorts saw an occupancy of 60% achieved in line with 2019 levels.

Keith Barr, CEO of IHG Hotels and Resorts, said: “We continue to grow rapidly, opening 79 hotels in the quarter and signing another 91 into our pipeline of 1,800 properties, and we expect development activity to pick up further over the remainder of the year. 

“Across our portfolio of 17 brands, owner interest is strong both for those brands recently launched or acquired, in addition to our well‑established and industry-leading brands. The rapid progress we are making with the review of the Holiday Inn and Crowne Plaza portfolios is also ensuring that we are well positioned for future growth.”

He added: “While we remain vigilant to fluctuating Covid restrictions in different markets, the pace of returning demand is very encouraging as travel increasingly re-opens in every region. 

“The strength of our brands, platforms and scale gives us confidence in IHG’s future prospects and of both exceeding prior levels of profitability and delivering industry-leading net system size growth in the coming years.”

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