Highlights
Group Q1 comparable RevPAR1 down 24.9%; March down 55%; April expected to be down around 80%
~15% (~1,000 hotels) of the estate closed as at the end of April; ~10% (~440 hotels) in the
Occupancy levels in comparable open hotels in the low-to-mid 20% range
4.6% YoY net system size growth to 882k rooms
6k rooms opened, including 1k in March
Signed 14k rooms (104 hotels) in the quarter, including 4k in March, taking the pipeline to 288k rooms
Delivering on our cost reduction and cash conservation actions across the
Following a solid performance in the first two months of 2020, occupancy levels dropped to historic lows in March and April, as social distancing measures and travel restrictions came into effect around the world. Global RevPAR in the first quarter declined by 25%, including a 55% decline in March, and we anticipate April to be down by around 80%. In the US, our biggest market, our franchise portfolio of 3,750 mainstream hotels has seen lower levels of RevPAR decline than the industry, and as at the end of April we had ~90% of our estate open. Our business is also weighted towards non-urban markets that are less reliant on international inbound travel and large group meetings and events, which provides a level of resilience during this difficult period.
Building on our conservative balance sheet approach, we are delivering on our plans to reduce costs, preserve cash and strengthen our liquidity. We remain focused on managing the business appropriately through this unique period while also positioning IHG to emerge strongly when our markets recover. We anticipate continued disruption to travel in the months ahead, and forward visibility on the timing and shape of improvements in demand remains very limited. We are though still seeing hotel openings including the
IHG's response to Covid-19 is centred on remaining true to our purpose and values, and we are taking all necessary actions to manage through the uncertainties and challenges facing our industry. Our strategy is unchanged, and we will look to continue building on the resilience of our business model relative to the industry.'
1 RevPAR growth is on a comparable hotels basis and at constant exchange rates (CER) unless otherwise stated
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