Holiday Inn owner IHG’s occupancy levels dive to record lows during coronavirus pandemic
Holiday Inn owner Intercontinental Hotels Group (IHG) said occupancy levels dropped to historic lows in March and April due to coronavirus lockdowns around the world.
The hotel group said global revenue per available room plunged 25 per cent in the first quarter, with a 55 per cent drop in March.
It is forecast to fall even further, with IHG expecting to report an 80 per cent dive in April.
At the end of last month, 15 per cent of IHG’s estate was closed due to the pandemic. The company said half of its sites in Europe, the Middle East and Africa had temporarily shut.
In the Americas, 10 per cent of IHG’s hotels were closed, and two per cent remain shut in Greater China.
IHG chief executive Keith Barr said: “Covid-19 represents the most significant challenge both IHG and our industry have ever faced.
“We are responding on every front and taking decisive action to the benefit of all our stakeholders.
“Our top priority remains to support our guests, colleagues and hotel owners through this crisis, whilst protecting for the long term and positioning the business for recovery.”
Barr added: “We have been working closely with our owners to help keep hotels open, including advising on adjusting operations, providing fee relief and payment flexibility, and collaborating to secure broader government support for the industry.”
Last month IHG confirmed it had secured a £600m loan under the government’s coronavirus financial support scheme.
It also amended its credit facility to include a waiver of existing covenants until the end of next year.