InterContinental Hotels makes steady progress to 2019 levels as travel booms

InterContinental Hotels’s revenue per available room (RevPAR) was up 61 per cent compared to 2021, clinching 82 per cent of 2019 levels overall.InterContinental Hotels’s revenue per available room (RevPAR) was up 61 per cent compared to 2021, clinching 82 per cent of 2019 levels overall.

InterContinental Hotels’s revenue per available room (RevPAR) was up 61 per cent compared to 2021, clinching 82 per cent of 2019 levels overall.

For Europe, the Middle East and Africa, figures hit 122 per cent compared 2021, whilst the Americas were up 58 per cent.

For the latter, Holiday Inn Express and our Extended Stay brands exceeded 2019 levels of RevPAR. Demand was boosted by a strong Spring Break vacation period, with leisure rooms revenue 10 per cent higher than 2019 for the quarter overall.

Leisure demand is expected to remain strong in the coming quarters. Together with growth in corporate bookings and more group activity and events returning, this is expected to support further progress in both occupancy and rate.

Previous restrictions, particularly on international travel, were generally being lifted over the course of the quarter in all markets, though the timing of these still resulted in a broad spread of performance within the region.

Keith Barr, Chief Executive Officer, IHG Hotels & Resorts, said: “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% more than in 2021. Our pipeline of 278 thousand rooms increased 2.4%.

“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.”

In April, IHG entered into a new $1.35bn syndicated bank revolving credit facility (RCF). The previous $1.275bn syndicated facility and $75m bilateral facility have been cancelled. The covenant amendments to the previous facility announced in December 2020, which included a relaxation of covenants for the June 2022 and December 2022 and the $400m minimum liquidity covenant, are no longer in effect.