IHG Hotels & Resorts started off 3Q22 earnings season on Friday reporting group-wide RevPAR exceed pre-pandemic levels. CEO Keith Barr said leisure stays saw room revenue increase 12% in 2019, while the ongoing return of business and group travel continues to build momentum.
Barr added that RevPAR performance in the Americas was well ahead compared to three years ago and the EMEAA region was back to broadly flat on 2019 levels. “Improvements in Greater China reflected the lifting of some of the COVID-related travel restrictions and, while the potential for further lockdowns there continues, we are pleased with overall group momentum,” he added.
Highlights of 3Q trading:
- Group RevPAR +28% vs 2021; +2.7% vs 2019, with Americas +6.8%, EMEAA -0.1% and Greater China -20%
- ADR +13% vs 2021, +11% vs 2019; occupancy +8% pts vs 2021, -6% pts vs 2019
- Gross system size growth +4.3% YOY; opened 8,000 rooms (51 hotels) in Q3, similar to Q2 and ahead of Q1
- Underlying removal rate -1.7% YOY; removals YTD equate to an annualized underlying rate of -1.3%
- Net system size growth +2.6% YOY on an adjusted basis
- Global system of 888,000 rooms (6,061 hotels); 67% across midscale segments, 33% across upscale and luxury
- Signed 13,200 rooms (89 hotels) in Q3, similar to Q2 and last year; global pipeline of 278,000 rooms, +2.9% YOY