Holiday Inn owner IHG secures £600m coronavirus loan
Holiday Inn owner Intercontinental Hotels (IHG) has secured a £600m loan under the government’s coronavirus financial support scheme, the company announced this morning.
IHG’s share price jumped 4.85 per cent this morning after the hotel operator said it now had $2bn in liquidity, after it also amended its credit facility to include a waiver of existing covenants until the end of next year.
The company said revenue per available room fell 25 per cent in the first quarter, driven by a 55 per cent dive in March.
Around half of IHG venues are closed across Europe, the Middle East and Africa due to coronavirus lockdowns.
In the US, around 10 per cent of its hotels are shut.
Meanwhile, trading in China is improving, IHG said this morning, with just 12 out of 470 hotels still closed.
Last month the hotel chain announced measures to reduce costs by $150m, including cutting executive pay and a reduction in marketing spend.
“Demand for hotels is currently at the lowest levels we’ve ever seen,” said IHG chief executive Keith Barr.
“IHG has a robust business model and the measures we are announcing today to reduce costs and preserve cash give us the capacity to manage the business through this unique environment and to support our owners during this incredibly difficult time.”