Occupancy at the InterContinental Hotels Group
improved from 25 to 44 per cent from the second to
third quarters of the year, the company said in a trading update to the markets today. However,
the hotels group said that group revenue per available room (RevPAR) for the
quarter was down 53.4 per cent, although the situation in Europe is worse,
where RevPAR declined 72 per cent.
The group said it was on track
to reduce costs in the franchised and managed part of its portfolio by US$150 million in 2020. It said cash
flow was positive and total available liquidity at end of September had increased to US$2.1 billion.
Keith Barr, IHG’s CEO, said: “Domestic
mainstream travel remains the most resilient, and our Holiday Inn brand family
positions us well to meet that demand as it slowly returns.”
He added: “Despite the challenges we’ve faced, we have continued to open new
hotels and sign more into our pipeline. This is recognition of consumer
preference for our brands and strong owner relationships, and also the
long-term attractiveness of the markets we operate in and the relative
resilience of our business model.
“We signed 82 hotels in the quarter, taking us
to 263 year-to-date, more than a quarter of which are conversions. As we
continue to invest in growth initiatives, we do so with a strict focus on cost
reduction and an unwavering commitment to act responsibly for our people,
guests, owners and local communities.”
Barr continued: “A full industry recovery will take time and uncertainty remains regarding the
potential for further improvement in the short term, but we take confidence
from the steps taken to protect and support our owners and drive demand back to
our hotels as guests feel safe to travel.”
The company said that 199 hotels
(3 per cent of its total) remained closed at 30 September.