As part of its 2Q21 earnings report on Tuesday, IHG Hotels & Resorts said it will soon launch a new luxury and lifestyle collection brand for independent hotels. CEO Keith Barr said there are currently around 1.5 million independently run rooms in the market segments IHG is targeting, and it expects the collection to attract more than 100 hotels within 10 years.
IHG revenue was up 16% for the first half of the year to US$565 million, with operating profit standing at US$188 million, up 262%. The group reported total revenues of US$325 million for Q2, up 24% from the same period in 2020, creating a US$67 million pre-tax profit compared to a loss of US$275 million last year.
IHG reported a surge in demand in China and the Americas with reservations per room up in both regions throughout the second quarter. Bookings are still down on 2019 levels, however. In Q2, Greater China saw a 16% increase in RevPAR versus 2019; Americas RevPAR was up 26%; EMEAA was still the most challenged at -65%.
Newly opened Holiday Inn Express, Nice, France
“Essential business travel was a key element of our resilience throughout the pandemic, and we are now seeing more group activity and corporate bookings start to come back,” Barr said. “These trends and the momentum in the business have continued in recent weeks, including in EMEAA where a lifting of travel restrictions in some markets is also now driving improvements in demand. With occupancy and rate continuing to improve, nearly 50% of our hotels achieved RevPAR above 2019 levels in July.”
The company also reported that it opened 132 hotels and signed 203 deals during the first half of the year.