InterContinental Hotels Group (IHG) has revealed the damage the COVID-19 pandemic has caused to its financials so far in 2020, and offered some predictions on its future impact.
The company’s global RevPAR declined by 25 per cent in the three months to 31 March, compared to the prior corresponding period.
This included a 55 per cent decline in March, and IHG is anticipating April to be down by around 80 per cent.
Approximately 15 per cent of IHG’s hotels were closed at the end of April, representing roughly 1,000 properties.
On a more positive note, the company managed to sign 104 hotels (or 14,000 rooms) during the March quarter.
Occupancy levels in IHG’s comparable open hotels during the first three months of the year were in the low-to-mid 20 per cent range.
IHG chief executive Keith Barr said the company was delivering on its plans to reduce costs, preserve cash and strengthen its liquidity.
“We remain focused on managing the business appropriately through this unique period, while also positioning IHG to emerge strongly when our markets recover,” he said.
“We anticipate continued disruption to travel in the months ahead, and forward visibility on the timing and shape of improvements in demand remains very limited.”
Featured image: iStock/StockPhotosArt
