BTN Europe presents an overview of business travel and MICE predictions for this year
InterContinental Hotels Group (IHG) said it now has access
to US$2 billion of liquidity after securing a £600 million (about US$740
million) commercial loan under the UK government’s Covid Corporate Financing
The company said a number of new financing arrangements have
strengthened its position in the face of the Covid-19 crisis. This includes
amending its revolving credit facility to include a waiver of existing
covenants until 31 December 2021.
In addition to US$1.35 billion cash on deposit, IHG has
existing bank facilities that are currently US$660 million undrawn, taking its
total potential liquidity to US$2 billion.
According to its preliminary Q1 results, IHG expects global
RevPAR to be down 25 per cent, including a 55 per cent decline in March. It
said trading in Greater China continues to improve, with only 12 out of 470
hotels now closed. Around 10 per cent of its properties in the US are closed,
while about half of its hotels are closed in EMEA and Asia. Occupancy levels in
comparable open hotels are currently in the low to mid-20 per cent range across
the business, according to the company.
IHG will release its full Q1 results on 7 May.