InterContinental Hotels Group (IHG) suffered a big loss in the first six months of 2020, but it wasn’t all bad news for the company.
IHG posted a US$275 million ($383.4 million) half-yearly loss, compared to a US$375 million ($522.9 million) profit during the same period in 2019.
Global RevPAR declined by 52 per cent in the first half and was down 75 per cent in the second quarter, when occupancy at comparable IHG hotels fell to 25 per cent.
However, the group still managed to open more than 90 hotels in the first six months of the year, and strengthened its pipeline with an average of one new signing a day, including almost 100 for its Holiday Inn brand.
IHG noted that “small but steady” improvements in occupancy and RevPAR through the second quarter continued into July, with an expected RevPAR decline of 58 per cent, and occupancy rising to around 45 per cent.
The company has also maintained roughly US$2 billion ($2.8 billion) in liquidity, and plans to make around half of the US$150 million ($209.1 million) of savings it will achieve this year sustainable into 2021.
“The impact of this crisis on our industry cannot be underestimated, but we are seeing some very early signs of improvement as restrictions ease and traveller confidence returns,” IHG chief executive Keith Barr said.
“Whilst the near-term outlook remains uncertain and the time period for market recovery is unknown, we are well-positioned with preferred brands in the largest markets and segments, a leading loyalty platform and one of the most resilient business models in the industry.
“This gives us confidence in our ability to meet the needs of our guests and owners, and to emerge strongly when markets recover.”
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