IHG reports 22% drop in Q1 UK revpar
InterContinental Hotels Group (IHG) has reported a 22% drop in UK revenue per available room (revpar), with London down 25% in its first quarter trading update.
In the group's Europe, Middle East, Asia and Africa (EMEAA) region, revpar was down 25.7%, including a 63% decline in March. From the end of April around half of the group's hotels in the region were closed (approximately 560 properties).
Total group revpar was down 24.9%, with March specifically down 55% and April expected to be down around 80%.
Keith Barr (pictured), chief executive of InterContinental Hotels Group, said: "Covid-19 represents the most significant challenge both IHG and our industry have ever faced. We are responding on every front and taking decisive action to the benefit of all our stakeholders.
"I would like to sincerely thank everyone at IHG and our owners for the way they have responded to this challenge. This includes protecting the health and safety of guests and colleagues; flexing booking and cancellation options for guests and protecting their loyalty membership status; and repurposing hotels to provide essential activities including accommodation to frontline workers, military personnel and vulnerable members of society.
"We have been working closely with our owners to help keep hotels open, including advising on adjusting operations, providing fee relief and payment flexibility, and collaborating to secure broader government support for the industry.
"Our business is also weighted towards non-urban markets that are less reliant on international inbound travel and large group meetings and events, which provides a level of resilience during this difficult period.
"Building on our conservative balance sheet approach, we are delivering on our plans to reduce costs, preserve cash and strengthen our liquidity. We remain focused on managing the business appropriately through this unique period while also positioning IHG to emerge strongly when our markets recover. 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.
"Our strategy is unchanged, and we will look to continue building on the resilience of our business model relative to the industry."
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