InterContinental Hotels Group anticipates a 75 per cent
year-over-year decline in second-quarter revenue per available room, resulting
in a 52 per cent RevPAR decrease for the first half of 2020 based on a
comparable-hotel and constant-currency basis, the company announced. RevPAR
declined 82 per cent year over year in April and 76 per cent in May and is
estimated to be down 70 per cent for June.
"The smaller but steady improvements in RevPAR through
the second quarter are mostly attributed to the Americas franchised estate and
the Greater China region," the company said in a statement.
IHG includes US-franchised and US-managed divisions in its
Americas region. The Q2 Americas RevPAR decline is estimated at 72 per cent
year over year. RevPAR for the US franchise group, which is weighted toward
domestic demand-driven mainstream hotels and non-urban markets and less on
large group business, is anticipated to decline 67 per cent. This compares to a
projected 87 per cent second-quarter RevPAR decline for the US managed
division, which is weighted toward luxury and upper-upscale hotels in urban
markets that "individually contribute higher fee revenue than a mainstream
franchised hotel."
Occupancy levels in comparable open hotels have improved to
more than 40 per cent in the US, according to the company, adding that about 10
per cent of its global portfolio remain closed. In the Americas, about 5 per cent
are closed, most being managed luxury and upscale hotels and those outside of
the US. In the Europe, Middle East, Africa and Asia region, 30 per cent of
hotels remain closed. In China, 1 per cent are closed.