IHG Q3 RevPar falls 53%

Hospitality giant IHG has revealed group RevPAR for the third quarter of the year decreased 53.4%, attributed to the continued impact of Covid-19.

However, the total marks an improvement in RevPAR compared with the second quarter of the year where it declined by 75% YOY.

It also revealed occupancy improved to 44% during the three month period ending 30 September, despite the fact 199 hotels remained closed at the end of September.

IHG also revealed its cost and cash preservation actions, “strong focus on working capital” and the improvement in trading led to positive free cash flow in Q3. The total available liquidity at the end of September increased to $2.1bn (£1.60bn).

The total net system size of IGH grew 2.9% year-on-year with the global estate estimated at 890,000 rooms, spanning over 5,977 hotels.

Fee business costs were also reportedly “on track” and said to have reduced by $150m (£114m) in 2020.

Keith Barr, CEO of InterContinental Hotels Group PLC, said: “Trading improved in the third quarter, although progress continues to vary by region. RevPAR declined 53%, compared to a 75% decline in the prior quarter, while occupancy was 44%, up from 25% in Q2.

“Domestic mainstream travel remains the most resilient, and our industry-leading Holiday Inn Brand Family positions us well to meet that demand as it slowly returns. I want to thank all our incredible colleagues and hotel owners for their dedication to creating a clean, safe stay experience that every one of our guests can count on in these uncertain times.”

He added: “Despite the challenges we’ve faced, we have continued to open new hotels and sign more into our pipeline. This is recognition of consumer preference for our brands and strong owner relationships, and also the long-term attractiveness of the markets we operate in and the relative resilience of our business model.

“As we continue to invest in growth initiatives, we do so with a strict focus on cost reduction and an unwavering commitment to act responsibly for our people, guests, owners and local communities.”