IHG Hotels & Resorts Releases First Quarter Trading Update

strategic alliance

IHG Hotels & Resorts released its Q1 2022 trading update. The highlights from the report include:

  • Q1 group RevPAR up 61 percent versus 2021 and attaining 82 percent of 2019’s level
  • Average daily rate up 27 percent versus 2021 and in line with 2019
  • Americas and EMEAA saw improved trading in February and March after a challenging January
  • Greater China trading in March impacted by the tightening of localized travel restrictions
  • Gross system size growth up 4.9 percent year-over-year (YOY), up 0.7 percent year-to-date (YTD); opened 6,600 rooms (45 hotels) in Q1, broadly similar to 2021
  • Net system size growth up 3.4 percent YOY (adjusted for Holiday Inn and Crowne Plaza removals in 2021), up 0.5 percent YTD
  • Global system of 885,000 rooms (6,028 hotels); 68 percent across midscale segments, 32 percent across upscale and luxury
  • Signed 16,600 rooms (120 hotels) in Q1, around 15 percent more than 2021 and 2020; global pipeline increased to 278,000 rooms

Keith Barr, CEO, IHG Hotels & Resorts, said, “We’ve seen very positive trading conditions in the first quarter with travel demand continuing to increase in almost all of our key markets around the world. The high level of demand we have seen for leisure travel continues to drive increased rates and occupancy. We also continue to see a return of business and group travel, further supporting RevPAR improvements in many of our key urban markets. As occupancy levels rise and due to the strength of our brands, our hotels are seeing increased pricing power; in March, our hotels in the United States achieved leisure rates up by more than 10 percent on 2019 levels and rate across the whole of the U.S. business was 4 percent ahead. Trading in Greater China continues to be impacted by restrictions put in place to control rising COVID cases.”

Barr continued, “Our strategic focus on strengthening and expanding our brand portfolio continues to drive growth. We signed 17 thousand rooms into our development pipeline in the first quarter, 15 percent more than in 2021. Our pipeline of 278 thousand rooms increased 2.4 percent. Of the 120 hotels signed, there was a particularly strong performance in the Americas with a near-doubling of signings from 39 to 73. Luxury & Lifestyle brands now account for around 20 percent of all signings, and following the completion of our quality review in 2021, there were 52 signings across the Holiday Inn brand family and 14 for Crowne Plaza, together up 22 percent on last year. Our net system size is expanding, and we are pleased with the progress towards our ambition of delivering an industry-leading level of net rooms growth.”

Advertisement
Previous articleBaird/STR Hotel Stock Index Rises 0.7 Percent
Next articleBrookfield Real Estate Funds to Acquire Watermark Lodging Trust