Intercontinental Hotels Group (LON:IHG) reported a 61% jump in first quarter Revenue Per Available Room (RevPAR) compared to the same period last year, 18% lower than 2019 levels. The recovery continues in the Americas and Europe, the Middle East and Africa (EMEAA), whilst China was impacted by fresh restrictions.
Average daily rates were back in line with 2019 levels, whilst occupancy was 11 percentage points lower.
Q1 2022 hedge fund letters, conferences and more
CEO, Keith Varr, said: "We've seen very positive trading conditions in the first quarter with travel demand continuing to increase in almost all of our key markets around the world.”
The shares were broadly flat following the announcement.
IHG's Earnings
Matt Britzman, Equity Analyst at Hargreaves Lansdown
“The resurgence of travel demand as restrictions ease in most areas across the globe means the Holiday Inn owner’s been able to reap the rewards. Leisure travel leads the way, with business and group/events also showing signs of life, that’s given occupancy and rates a boost and means revenue per room is edging ever closer to pre-pandemic levels – about 18% shy.
Owing to the strong branding power and a consumer keen to get out and enjoy the Spring Break period, rates for leisure rooms in the US managed to surpass 2019 levels by 10%, a trend that’s expected to continue. As expected, China was impacted by fresh restrictions introduced in March and was the only key region to show declines in growth.
Following last year’s clean out of Holiday Inn and Crowne Plaza hotels that didn’t quite cut the mustard, new singings are coming thick and fast which is good news as the lost revenue needs replacing. With a cost-of-living crisis sweeping the globe, the group’s focus on a mid-tier value offering should hold it in good stead to capture demand from an increasingly cash strapped consumer.”
__About Hargreaves Lansdown
__
Almost 1.7 million clients trust us with £141.2 billion (as at 31 December 2021), making us the UK’s number one platform for private investors. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month.
Updated on
