Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

IHG books $153 million loss, Holiday Inn softens coronavirus blow

02/23/2021 | 04:19am EDT
FILE PHOTO: Britain introduces hotel quarantine programme for arrivals from a

(Reuters) - InterContinental Hotels booked an annual loss of $153 million on Tuesday, pummelled by repeated COVID-19 restrictions and lockdowns, but said a faster recovery in its Holiday Inn Express brand had helped it outperform in key markets.

The company, which previously scrapped its final dividend, said 2020 was the most challenging year in its history as revenue per available room slumped 52.5%, with global travel and entertainment spending remaining under pressure.

Pinning its hopes on the global roll-out of COVID-19 vaccines and a wider economic rebound, IHG said the industry was unlikely to see a recovery until later in the year but hinted that global travel was starting to recover.

"People want to travel again...It is the thing that people have missed most and so there is enormous pent up demand to travel," Chief Financial Officer Paul Edgecliffe-Johnson said, adding that "travel will come back very rapidly."

Shares of the company were up 3.8% at 5,516 pence by 0845 GMT, amid a near 3% rise on the FTSE 350 travel and leisure index as Britain saw a surge in flight and hotel bookings after the government said would-be holidaymakers will be given clarity on making plans for the summer by April 12.

Demand remained stronger in IHG's Holiday Inn Express business, which represents about 70% of its rooms in the U.S. market and has historically been impacted less and recovered faster than other segments in economic downturns, the company said.

"IHG is at the start of a prolonged period of commercial recovery," Peel Hunt analysts said in a note.

Still, IHG reported a group operating loss of $153 million for the year ended Dec. 31, compared with a profit of $630 million last year.

(Reporting by Tanishaa Nadkar in Bengaluru; Editing by Devika Syamnath and Alexander Smith)

By Tanishaa Nadkar

© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
FTSE UK 350(GBP) 0.17% 4126.41 Delayed Quote.11.71%
INTERCONTINENTAL HOTELS GROUP PLC -2.92% 4850 Delayed Quote.3.41%
Latest news "Economy & Forex"
12:26p'Dune' Opens to $40 Million at the Box Office. Strong Enough for a Sequel?
12:19pUniCredit, Italy govt end talks over potential sale of Monte dei Paschi
12:16pUnicredit had valued parts of mps business it would have bought at 1.3 bln euros, treasury estimated a fair value of 3.6-4.8 bln euros - source
12:16pUnicredit's terms incompatible with treasury's goal to not undersell stake in monte dei paschi - source
12:16pTreasury has deemed such adjustments in large part unjustified - source
12:16pUnicredit asked italy to inject 6.3 bln euros in cash into monte paschi due to negative accounting adjustments - source
11:19aUnicredit - unicredit, mef say that negotiations pertaining to potential acquisition of banca monte dei paschi di siena will no longer continue
11:18aUnicredit - unicredit and the ministry of economy and finance announce the decision to cease the negotiations
10:47aYellen says U.S. is not losing control of inflation
09:56aYELLEN : regulations strengthened under Fed chief Powell, predecessors
Latest news "Economy & Forex"