Worldwide: InterContinental Hotels Group has reported an expected 75 per cent revPAR decline for the second quarter overall, with “small but steady” improvements during the quarter.
Around five per cent of IHG’s estate remain closed in the Americas region, and only one per cent in Greater China. Around 30 per cent remain shut in the EMEAA region.
Of the group’s owned, leased and managed lease hotels, 17 out of 26 remain closed. A gradual reopening is expected through the third quarter, with anticipated low occupancies and lower than usual non-room revenues.
An estimated total of 70 per cent revPAR decline is expected for June – an improvement of 12 per cent from April.
The group said that this is mostly attributed to the Americas franchised estate and the Greater China region. Occupancy levels have now reached over 40 per cent in the US.
The Q2 revPAR decline for the Americas region is estimated at 72 per cent. Here, IHG’s franchised estate is weighted towards domestic demand-driven mainstream hotels, with a lower reliance on large group business and higher distribution in non-urban markets. IHG estimates a decline of 67 per cent in quarter two.
Compared to its US managed estate, which is weighted to luxury and upper upscale hotels in urban markets, the group estimates an 87 per cent revPAR decline.
The group confirmed that as at 26 June, it had around $2 billion in available liquidity.
