IHG Hotels & Resorts reported declines during the first quarter in the industry's three key performance metrics, but there was a "notable pick-up in demand in March particularly for the US and China, which continued into April," said IHG CEO Keith Barr in a statement.
First-quarter comparable group revenue per available room (RevPAR) was $35.55, down 33.7 per cent year over year or down 50.6 per cent compared with the same period in 2019. The company's occupancy level reached 40 per cent, which improved throughout the period, but was down 8 percentage points year over year and 23.3 percentage points from 2019. Average daily rate was $88.79 for the quarter, representing a 20.4 per cent drop from 2020 and a 22.1 per cent decline versus 2019.
"While the risk volatility remains for the rest of the year, there is clear evidence from forward bookings data of further improvement as we look to the months ahead," Barr said.
Greater China reported the best results by region, with quarterly RevPAR up 78.2 per cent year over year, and down 37.7 per cent versus 2019. Occupancy was 40 per cent, which was lower than the 57 per cent reported in both the third and fourth quarters of 2020, due to the reintroduction of temporary restrictions in January and February. The recovery resumed in March with demand returning toward levels seen in the second half of last year, according to the company.
RevPAR for the Americas was down 28.1 per cent year over year and 43 per cent compared with 2019. This showed an improvement over the 50 per cent decline reported in the third and fourth quarters of 2020. Occupancy reached 46 per cent, which matched the level reached in Q3 2020 and was an improvement over Q2 and Q4 2020 levels.
The Europe, Middle East, Asia and Africa region fared the worst for the quarter, with RevPAR down 62 per cent year over year and 71.4 per cent versus 2019. Performance varied by region, reflecting differing levels of government-mandated closures and restrictions, according to the company. Compared with 2019 figures, RevPAR was off 75 percent in the U.K., 87 per cent in continental Europe, 75 percent in Japan, 73 per cent in Southeast Asia and Korea, 51 per cent in Australia and 49 per cent in the Middle East.
EMEAA occupancy was just 27 per cent. This level was down compared with the 31 per cent and 29 per cent levels in the third and fourth quarters last year, respectively. Only Q2 2020 showed worse occupancy in the past year, at 14 per cent.
IHG opened about 7,300 rooms during the quarter, but removed approximately 9,500, for a total decline of just over 2,200 rooms. Two-thirds of those removals were from the Holiday Inn and Crowne Plaza brands. The company also signed more than 14,500 rooms in the first quarter, bringing IHG's total pipeline to nearly 274,000.
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