Revenue halved at IHG as hotel giant reports 59% revpar decrease in the UK
InterContinental Hotels Group (IHG) has reported a drop in revenue of 52% for the first half of 2020 delivering a £178m loss for the period.
In the UK, the Holiday Inn, Hotel Indigo and Kimpton operator said that revenue per available room (revpar) was down 59% for the half year to 30 June, with a second quarter decline of 90% largely due to government-mandated hotel closures.
Total revenue at the group was down from £1.74b to £960m year-on-year, while operating profit went from £322m to a loss of £178m.
Global revpar fell by 52% in the first half, though the group said there were small but steady improvements, with overall occupancy rising to 45% in July.
Chief executive Keith Barr (pictured) said the business was seeing "early signs of improvement, but warned that the short-term outlook remained uncertain.
He added: "The impact of this crisis on our industry cannot be underestimated, but we are seeing some very early signs of improvement as restrictions ease and traveller confidence returns.
"While the near-term outlook remains uncertain and the time period for market recovery is unknown, we are well-positioned with preferred brands in the largest markets and segments, a leading loyalty platform and one of the most resilient business models in the industry. This gives us confidence in our ability to meet the needs of our guests and owners, and to emerge strongly when markets recover."
