Holiday Inn owners see signs of lockdown recovery

Shoots of post-lockdown recovery are now visible in global hotel industry, the owners of the Holiday Inn chain has said.

InterContinental Hotels Group, which operates nearly 6,000 premises around the world, reported a significant uplift in trade, with July occupancy rates exceeding 2019’s levels in nearly half of its hotels.

Chief executive Keith Barr said: “Trading improved significantly during the first half of 2021, with travel demand returning strongly as vaccines roll out, restrictions ease and economic activity rebuilds.

“The actions we have taken during the last 18 months position us well to exceed our pre-pandemic level of growth and profitability.

“While there is a risk of trading volatility in the balance of the year, and discretionary business trips, group bookings and international travel will take time to fully recover, we are confident in the strength of IHG’s future prospects.”

Revenue for the group rose 16% to $565m (£408 million) and the company moved from a $275m (£199 million) pre-tax loss in the first six months of 2020, to a $67m (£48 million) profit in the same period this year.

However, the recovery still has a long way to go, with China leading the way, with revenue per available room down just 16% compared to 2019. In the Americas the same measurement is down 26%.

However, in Europe, Middle East, Africa and Australia the company is the most challenged, with revenue per available room still 65% lower than in 2019.

No dividends will be paid to shareholders this year.

“Trading has improved significantly during the first half of the year leading to profitability rebounding and the board is confident that the proven highly cash generative nature of our business model will allow resumption of dividend payments in due course,” it said.

Sign up to our newsletter and get all the latest LCN content here >>>http://eepurl.com/deVW