Holiday Inn owner predicts "sustained growth" as demand picks up internationally

An international hotel group has reported that it has seen a “noticeable pick-up” in demand as the impact of the pandemic lessens.

InterContinental Hotels Group, based in Britain, said that its revenue per available room (RevPAR) for the first quarter of the year has begun to rise after a dip last year.

The company, which owns the Holiday Inn chain of hotels, said that its venues in the Americas are driving its recovery, with RevPAR increasing by 7 per cent compared to the last half of 2020.

During the period, the group opened an additional 56 hotels, which it said broadly offset the 61 it closed.

It predicts that it will see “sustained growth” over the next year as travel restrictions lift and the economy improves.

Keith Barr, CEO of IHG Hotels & Resorts, said: “Trading continued to improve during the first quarter of 2021, with IHG maintaining its outperformance of the industry in key markets and seeing strong performance in openings and signings as we expand our brands around the world.

“There was a notable pick-up in demand in March, particularly in the US and China, which continued into April.

“While the risk of volatility remains for the balance of the year, there is clear evidence from forward bookings data of further improvement as we look to the months ahead.

“The improved group RevPAR performance was led by the Americas, which strengthened to -43 per cent versus 2019 levels compared to -50 per cent in Q3 and Q4 2020.

“In EMEAA, the continuation of lockdowns across much of the region meant RevPAR levels were largely unchanged from the prior two quarters. In Greater China, after temporary domestic travel restrictions were lifted, demand recovered quickly in March towards levels seen in the second half of 2020.

“We opened a further 56 hotels during the quarter, and these new openings broadly offset hotels removed as part of our continued focus on maintaining the highest quality estate for our guests.

“Linked to this, we are making good progress on our review of the Holiday Inn and Crowne Plaza estates.

“Our pipeline grew with 92 signings in the quarter, driven by our industry-leading midscale brands and continued strong owner appetite for conversion opportunities, particularly in our premium and luxury & lifestyle categories.

“This includes conversions to our voco brand, which has achieved over 50 signings in more than 20 countries in fewer than three years since launch.

“As the rollout of vaccines becomes more established, travel restrictions lift, and economic activity rebuilds, traveller demand will continue to grow and generate further momentum in an industry recovery over the course of the year.

“Coupled with our resilience as a business and the important work we’re doing to support our owners, develop our brands and expand our pipeline, we’re confident that IHG is well positioned for sustained growth.”