IHG trading nears pre-pandemic levels in FY21
The group hailed its period of recovery while noting that RevPAR has recovered to 70% of 2019 levels, reaching 83% in Q4
IHG has returned to profit in its latest full-year results as travel and tourism begins to rebound, with operating profits totaling $494m (£364m) following a loss of $153m (£113m) in 2020.
The group hailed its period of recovery while noting that RevPAR has recovered to 70% of 2019 levels, reaching 83% in Q4.
Its global Q4 RevPAR of 17% was broadly in line with 2019 levels, while Q4 occupancy was 56%, or 53% in the full-year.
Meanwhile, the hotel chain opened 44.0k rooms across 291 hotels over the year, up by 12% against 2020. Its global estate now stands at 880k rooms across 5,991 hotels.
It comes as it reported a “significant” acceleration in signings in Q4 at 23.7k, close to levels achieved in 2019, with the strongest increase seen in EMEAA.
Overall, it signed 68.9k rooms from 437 hotels in total in 2021, up by 23% against 2020. It also has a global pipeline now at 271k rooms from 1,797 hotels.
Keith Barr, CEO, IHG Hotels and Resorts, said: “Trading improved significantly in 2021, with RevPAR getting closer to pre-pandemic levels as the year went on, profitability and cash flow rebounding strongly, and signings accelerating in Q4.
“As vaccination rates rise and restrictions are lifted around the world, we are seeing the demand for travel increase. While there may be unexpected challenges ahead, we are confident in our ability to respond and adapt to what consumers and owners need as we position IHG for strong future growth.”
He added: “Recognising the scale of our ambitions and the strengths and efficiencies of our distribution and technology platforms, owner interest in our brands continues to increase. Development activity was well ahead of 2020, with 437 hotel signings contributing to a global pipeline that represents more than 30% of today’s system size.
“With the strong financial improvements delivered in 2021, including more than doubling our operating profit from reportable segments and substantially reducing our net debt, the Board is pleased to be recommending the reinstatement of a dividend. The signs are encouraging that we are nearing the end of the pandemic, and we are confident in the strength of IHG’s enterprise, market positioning and ability to drive attractive levels of long-term, sustainable growth.”
