InterContinental Hotels Group PLC (LSE:IHG) returned to profit in the first half as travel demand picked up and occupancy and room rates continued to improve in the second half.
Revenue per available room (RevPAR) in the first six months of the year was down 42.6% versus pre-pandemic 2019, with the second quarter of this year outperforming the first quarter.
Occupancy and room rates continued to improve and almost 50% of the group’s hotels achieved RevPAR above 2019 levels in July, it said.
"Trading improved significantly during the first half of 2021, with travel demand returning strongly as vaccines roll out, restrictions ease, and economic activity rebuilds,” said Keith Barr, chief executive of IHG Hotels & Resorts.
“It has been great to see our teams welcome more and more guests back into our hotels, with domestic leisure bookings leading the way, particularly in the US and China. 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.
“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.”
It moved to a pretax profit of US$67mln from a loss of US$275mln in the first six months of 2020.
IHG said 84 hotels, or 1% of the global estate, remained temporarily closed at 30 June 2021, a significant improvement from almost 300 hotels at the start of 2021.
“The actions we have taken during the last 18 months position us well to exceed our pre-pandemic level of growth and profitability,” said Barr.
“While there is a risk of trading volatility in the balance of the year, and discretionary business trips, group bookings and international travel will take time to fully recover, we are confident in the strength of IHG's future prospects," he said.
The group decided not to pay an interim dividend, but said dividend payments should resume “in due course”.