IHG RevPAR surges 61% in Q1 2022

IHG has revealed its group RevPAR increased 61% year-on-year for the first quarter ending 31 March 2022, attaining 82% of pre-Covid levels in 2019. Overall, the average daily rate is up 27% year-on-year in 2021 and in line with 2019. In EMEAA, Q1 RevPAR surged 122% compared to Q1 2021, although this is down 33% compared to 2019 levels. Occupancy was approaching 50%, down 21% on a two-year basis, whilst the rate was down just 4%. All in all, Q1 RevPAR was down 15% in the UK compared to 2019, and 7% in the Middle East, whilst it was still 38% lower in Australia, 45% in Continental Europe, 58% in South East Asia and Korea and 64% in Japan. Meanwhile, the Americas saw Q1 RevPAR grow 58% year-on-year, although this is down 8% from 2019. In particular, US RevPAR was down 6% from 2019. Across the region, occupancy was close to 60%, down 6% on 2019, whilst the rate was up 1%. However, Holiday Inn Express and IHG’s Extended Stay brands exceeded 2019 levels of RevPAR, with leisure rooms revenue 10% higher than 2019 for the quarter overall. IHG said leisure demand is expected to remain strong in the coming quarters, along with growth in corporate bookings and more group activity and events returning. The group opened 3.5k rooms across 17 hotels in the EMEAA in the quarter, growing its system size by 4.2% year-on-year. It also opened 7.8k rooms across 73 hotels in the Americas, exceeding the Q1 signings back in 2019. However, Greater China trading in March was impacted by the tightening of localised travel restrictions. Q1 RevPAR was down 42% from 2019 and down 7% from 2021. Occupancy was 36%, down 16% in 2019, whilst the rate was down 17%. In March, travel restrictions implemented following increased Covid-19 cases led to RevPAR weakening to a 53% decline vs 2019, with around a third of the estate temporarily closed or repurposed. Keith Barr, chief executive officer, said: “The high level of demand we have seen for leisure travel continues to drive increased rates and occupancy. We also continue to see a return of business and group travel, further supporting RevPAR improvements in many of our key urban markets. “Of the 120 hotels signed, there was a particularly strong performance in the Americas with a near-doubling of signings from 39 to 73.”

IHG RevPAR surges 61% in Q1 2022

Luxury and Lifestyle brands now account for around 20% of all signings, and there were 52 signings across the Holiday Inn brand and 14 for Crowne Plaza, together up 22% on last year.

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