IHG Hotels & Resorts reported declines during the first
quarter in the industry's three key performance metrics, but there was a
"notable pick-up in demand in March particularly for the U.S. and China,
which continued into April," said IHG CEO Keith Barr in a statement.
First-quarter comparable group revenue per available room
was $35.55, down 33.7 percent year over year or down 50.6 percent compared with
the same period in 2019. The company's occupancy level reached 40 percent,
which improved throughout the period, but was down 8 percentage points year
over year and 23.3 percentage points from 2019. Average daily rate was $88.79
for the quarter, representing a 20.4 percent drop from 2020 and a 22.1 percent
decline versus 2019.
"While the risk volatility remains for the rest of the
year, there is clear evidence from forward bookings data of further improvement
as we look to the months ahead," Barr said.
Greater China reported the best results by region, with
quarterly RevPAR up 78.2 percent year over year, and down 37.7 percent versus
2019. Occupancy was 40 percent, which was lower than the 57 percent reported in
both the third and fourth quarters of 2020, due to the reintroduction of
temporary restrictions in January and February. The recovery resumed in March
with demand returning toward levels seen in the second half of last year,
according to the company.
RevPAR for the Americas was down 28.1 percent year over year
and 43 percent compared with 2019. This showed an improvement over the 50
percent decline reported in the third and fourth quarters of 2020. Occupancy
reached 46 percent, which matched the level reached in Q3 2020 and was an
improvement over Q2 and Q4 2020 levels.
The Europe, Middle East, Asia and Africa region fared the
worst for the quarter, with RevPAR down 62 percent year over year and 71.4
percent versus 2019. Performance varied by region, reflecting differing levels
of government-mandated closures and restrictions, according to the company.
Compared with 2019 figures, RevPAR was off 75 percent in the U.K., 87 percent
in continental Europe, 75 percent in Japan, 73 percent in Southeast Asia and
Korea, 51 percent in Australia and 49 percent in the Middle East.
EMEAA occupancy was just 27 percent. This level was down
compared with the 31 percent and 29 percent levels in the third and fourth
quarters last year, respectively. Only Q2 2020 showed worse occupancy in the
past year, at 14 percent.
IHG opened about 7,300 rooms during the quarter, but removed
approximately 9,500, for a total decline of just over 2,200 rooms. Two-thirds
of those removals were from the Holiday Inn and Crowne Plaza brands. The
company also signed more than 14,500 rooms in the first quarter, bringing IHG's
total pipeline to nearly 274,000.
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