IHG Hotels & Resorts reported “strong trading” in the third quarter thanks to leisure revenues outstripping pre-pandemic levels, and business and group travel continuing to recover.
A trading statement from the Holiday Inn and Crowne Plaza parent said its third-quarter revenues per available room (revpar) were up by 2.7% compared to the same period in 2019, and 28% higher year-on-year.
The average daily rate was 13% year-on-year and 11% up on Q3 in 2019.
Keith Barr, chief executive, said: “Strong trading in the third quarter helped our group-wide revpar exceed pre-pandemic levels.
“Leisure stays saw rooms revenue increase 12% on 2019, while the ongoing return of business and group travel has been building each quarter through the year.
“Revpar performance in the Americas was well ahead compared to three years ago and the EMEAA region was back to broadly flat on 2019 levels.”
Within the EMEAA region, Q3 revpar was up 11% in Continental Europe, compared to 2019 levels, and up by 7% in the UK.
More: IHG sees group profit more than double for H1 2022
There were improvements in Greater China following the lifting of some of the Covid-related travel restrictions but Q3 revpar was down 20% compared to Q3 2019. It was up 12% year-on-year.
“While the potential for further lockdowns there continues, we are pleased with overall group momentum,” said Barr.
“We have also proven the resiliency of our business model and the ability for IHG to respond and adapt to opportunities and to macroeconomic uncertainties.
“These reinforce the confidence we have in our ability to drive attractive levels of long- term, sustainable growth.”
The trading update said the company is continuing to carry out “additional steps as part of our recovery and assurance plans to review and further enhance security measures”, following the unauthorised access to technology systems in early September.
External specialists engaged to investigate the incident had identified “no evidence of unauthorised access” to systems storing guest data and the criminal activity has been reported to law enforcement.
• IHG also announced that Paul Edgecliffe-Johnson will step down as chief financial officer and group head of strategy to take up a new position outside the company.
He will leave IHG in six months’ time and the firm has begun the process of appointing a successor.
Edgecliffe-Johnson joined IHG in 2004 and held a number of senior roles before being appointed CFO and to the board in 2014.
Deanna Oppenheimer, IHG chair, commented: “Paul has established excellent relationships across all our key stakeholders during his nearly 20 years at IHG. I want to thank him for his contribution.”
Barr added: “Paul has played a major role in helping IHG achieve its growth ambitions through expanding our brand portfolio, investing in our enterprise platform and building a strong finance team. Although we are sad to see Paul go, we wish him all the very best for the future.”
Edgecliffe-Johnson said: “It has been a huge privilege to have spent almost two decades as part of such a dynamic and successful business. I have valued working with talented colleagues and I will be leaving in the knowledge that IHG is well positioned for further success.”