IHG reports U.S. rates beat 2019 levels in March

With March room rates in the U.S. for leisure up by more than 10% over 2019 levels and overall rates in the U.S. up 4% over 2019 levels, IHG Hotels & Resorts joins the other major brand players reporting optimistic results for 1Q22.

In its 1Q earnings report, IHG said group RevPAR was up 61% versus 2021 and attained 82% of 2019 levels.

Average daily rate was up 27% versus 2021 and in line with 2019, IHG reported.

IHG’s recently opened voco Times Square South in New York City

Americas and EMEAA saw sequentially improved trading in February and March after a challenging January.

Similar to other global players, Greater China trading in March for IHG was impacted by tightening of localized travel restrictions.

Gross system size growth for IHG was +4.9% YOY, +0.7% YTD. IHG opened 6,600 rooms (45 hotels) in Q1, broadly similar to 2021.

IHG’s net system size growth was +3.4% YOY in 1Q (adjusted for Holiday Inn and Crowne Plaza removals in 2021) and is up 0.5% YTD.

IHG reported that it signed 16,600 rooms (120 hotels) in 1Q1, about 15% more than 2021 and 2020. The global pipeline for IHG increased to 278,000 rooms.

IHG CEO Keith Barr said of the 120 hotels signed, there was a particularly strong performance in the Americas with a near-doubling of signings from 39 to 73. “Luxury and lifestyle brands now account for around 20% of all signings and following the completion of our quality review in 2021 there were 52 signings across the Holiday Inn brand family and 14 for Crowne Plaza, together up 22% on last year,” he said. “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.”