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The Markets
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Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Leisure, gaming and gambling

IHG says 1% of hotels closed in China, but 30% in Europe, Middle East and Africa

The Crowne Plaza owner expects revenue per available room to be down 75% in the second quarter

InterContinental Hotels Group PLC (LON:IHG) said only 10% of its hotels are still closed around the world as it continues to open up after coronavirus shut-downs.

In Greater China, just 1% of the Holiday Inn and Crowne Plaza owner’s hotels were closed, rising to around 30% in Europe, Middle East, Africa and the rest of Asia, with the Americas at 5%.

The FTSE 100 group expects revenue per available room (revpar) to be down 75% in the second quarter of 2020, with a decline of 82% in April lessening to near 70% for June. For the first half as a whole, revpar will have been 52% lower.

First-half operating losses from owned, leased and managed hotels are expected to be in the region of US$25mln before exceptional items.

As at June 26, IHG said it continued to have around US$2bn in available liquidity, having “taken steps to protect cash flow by reducing costs and capital expenditure, and by proactively managing our working capital with measures including fee relief and increased payment flexibility for owners, which has resulted in continued payments being received through May and June”.

Shares were down 1% to 3,605p in early trading on Tuesday.

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