Return of business travel boosts trading for IHG

InterContinental Inns Group has been boosted by the return of enterprise and group journey as its revpar (income per obtainable room) approached pre-Covid ranges within the second quarter.

IHG, which owns manufacturers akin to Vacation Inn and Crowne Plaza, noticed a “vital enchancment” in buying and selling through the second quarter of the 12 months, with revpar within the Americas up by 3.5 per cent on 2019 and solely 10.3 per cent decrease within the EMEAA (Europe, Center East, Asia and Africa) area. World revpar for Q2 was 4.5 per cent decrease than in 2019.

The UK-based firm added that international common day by day charge (ADR) through the first half of 2022 was up by 4 per cent on 2019, though occupancy remained 10 share factors under pre-Covid ranges.

Keith Barr, IHG’s CEO, mentioned: “We noticed continued robust buying and selling within the first half of 2022 with elevated demand for journey in most of our markets. This introduced group revpar very near pre-pandemic ranges within the second quarter. 

“Alongside leisure stays, the return of enterprise and group journey demand continued to construct over the interval, and our lodges are seeing elevated pricing energy as a result of power of IHG’s manufacturers, loyalty programme and know-how platform.

“The restoration in demand and pricing led to group revenue greater than doubling versus 2021, with profitability within the Americas now forward of 2019. The EMEAA area additionally noticed wonderful enchancment in efficiency.”

The group reported a 52 per cent improve in income to $1.8 billion for the primary half of this 12 months, whereas working revenue elevated by 162 per cent from $138 million in 2021 to $361 million year-on-year.

IHG attributed the variation in efficiency throughout the EMEAA area to the timing of the lifting of Covid-19 restrictions with the UK market benefiting from an earlier easing of its guidelines.

Revpar on the firm’s UK properties was solely down by 2 per cent on 2019 ranges within the second quarter of 2022, with “robust enhancements in London buying and selling”, which noticed the town “quickly closing the efficiency hole” with the UK areas. By comparability, revpar in continental Europe was down by 8 per cent in Q2 in contrast with the identical quarter in 2019.