InterContinental Hotels Group anticipates a 75 percent year-over-year decline in second-quarter revenue per available room, resulting in a 52 percent RevPAR decrease for the first half of 2020 based on a comparable-hotel and constant-currency basis, the company announced. RevPAR declined 82 percent year over year in April and 76 percent in May, and is estimated to be down 70 percent 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 U.S.-franchised and U.S.-managed divisions in its Americas region. The Q2 Americas RevPAR decline is estimated at 72 percent year over year. RevPAR for the U.S. 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 percent. This compares to a projected 87 percent second-quarter RevPAR decline for the U.S. 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 percent in the United States, according to the company, adding that about 10 percent of its global portfolio remain closed. In the Americas, about 5 percent are closed, most being managed luxury and upscale hotels and those outside of the United States. In the Europe, Middle East, Africa and Asia region, 30 percent of hotels remain closed. In China, 1 percent are closed.