IHG experiences 'very positive trading conditions' in Q1

Holiday Inn-owner InterContinental Hotels Group said on Friday that it had seen "very positive trading conditions" in the first quarter, with travel demand continuing to increase in almost all of its key markets.

InterContinental Hotels said first-quarter group revenue per available room was up 61% against 2021 levels and hit 82% of 2019's pre-Covid level, while average daily rate up was 27% higher than twelve months earlier and in line with 2019.

The Americas and Europe, Middle East and Africa saw "sequentially improved" trading in February and March after a "challenging" January. Trading in Greater China, on the other hand, was impacted by the tightening of localised travel restrictions throughout March.

Chief executive Keith Barr said: "We've seen very positive trading conditions in the first quarter with travel demand continuing to increase in almost all of our key markets around the world. The high level of demand we have seen for leisure travel continues to drive increased rates and occupancy. We also continue to see a return of business and group travel, further supporting RevPAR improvements in many of our key urban markets.

"As occupancy levels rise and due to the strength of our brands, our hotels are seeing increased pricing power; in March, our hotels in the US achieved leisure rates up by more than 10% on 2019 levels and rate across the whole of the US business was 4% ahead. Trading in Greater China continues to be impacted by restrictions put in place to control rising Covid cases."

As of 0840 BST, InterContinental Hotels shares were down 1.09% at 4,922.0p.