IHG Hotels surpasses pre-pandemic RevPAR levels

IHG Hotels and Resorts report that its RevPAR grew by 28% in Q3 to 30 September 2022, compared to the 2.7% increase in 2019. The hotel operator’s average daily rates also saw an increase of 13% compared to last year. Though occupancy rose by 8%, it was still 6% less than in 2019. The group also saw its gross system size grow by 4.3% year-on-year, opening 8,000 rooms in 51 hotels during Q3, in keeping with levels reported in Q2 and ahead of Q1. In addition, its net system size also grew by 2.6% year-on-year on an adjusted basis. In addition, its global system of 888,000 rooms in 6,061 hotels is now 67% across midscale segments, and 33% across upscale and luxury. The group also signed an additional 13,200 rooms in 89 hotels during Q3, which is similar to Q2 and last year, with the global pipeline of 278,000 rooms growing by 2.9% year-on-year. However, IHG’s underlying removal rate reportedly fell 1.7% year-on-year, equating to an annualisation underlying rate of negative 1.3%. The group’s Q3 results coincide with the group’s announcement that Paul Edgecliffe-Johnson will step down from the board, as well as his role as chief financial officer and head of strategy. It is reported that Edgecliffe-Johnsons will leave the group in six month’s time while the company is in the process of appointing a successor. He joined IHG in 2004 and held a number of senior roles before being appointed CFO and to the board and executive committee in 2014. He also took on the leadership of IHG’s strategy function in 2019. Keith Barr, CEO of IHG Hotels and Resorts, said: “We remain focused on our strategy to develop IHG’s portfolio of brands, invest in leading technology and transform our loyalty programme. These appeal very strongly to hotel owners to join our enterprise platform, and we continue to explore a number of organic opportunities to help deliver on our ambitions for net system size growth. “We have also proven the resiliency of our business model and the ability for IHG to respond and adapt to opportunities and to macroeconomic uncertainties. These reinforce the confidence we have in our ability to drive attractive levels of long-term, sustainable growth.” He added: “Paul has played a major role in helping IHG achieve its growth ambitions through expanding our brand portfolio, investing in our enterprise platform and building a strong finance team. Although we are sad to see Paul go, we wish him all the very best for the future.”