IHG says hotel demand approaching pre-pandemic levels
InterContinental Hotels Group (IHG), the owner of brands including Holiday Inn and Crowne Plaza, said its trading was "getting closer to pre-pandemic levels" as demand for global travel returns.
In its results for the year to 31 December 2021, the company said revenue per available room (revpar) had returned to 70% of 2019 levels with the roll-out of the vaccination programme and coronavirus restrictions lifting worldwide.
UK revpar was down 41% on 2019 levels across the year. In December, the impact of the Omicron variant of coronavirus caused revpar to be 21% lower than pre-pandemic levels.
Trade in London was hit hardest in the final quarter of the year, with revpar 39% down on 2019, while in regions outside the capital it only dropped 2%.
Keith Barr, chief executive officer of IHG, said: "Working hand in hand, our colleagues and hotel owners have once again shown incredible efforts to navigate the ebbs and flows of recovery.
"As vaccination rates rise and restrictions are lifted around the world, we are seeing the demand for travel increase. While there may be unexpected challenges ahead, we are confident in our ability to respond and adapt to what consumers and owners need as we position IHG for strong future growth."
Worldwide IHG's profit from reportable segments was £393.8m, a 144% increase on 2020 but 38% lower than in 2019. Group operating profit was £364m.
IHG operates over 6,000 hotels across 17 brands in more than 100 countries. A further 1,800 hotels are in development.
Barr said the group's board was recommending the reinstatement of a dividend, which had been suspended since 2019, after IHG increased operating profit and reduced net debt.
"The signs are encouraging that we are nearing the end of the pandemic, and we are confident in the strength of IHG's enterprise, market positioning and ability to drive attractive levels of long-term, sustainable growth," he said.
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