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Although third-quarter U.S. leisure demand remained sturdy for IHG Accommodations & Resorts and important enterprise journey has been resilient, “what we at the moment are seeing is rising quantities of discretionary enterprise journey demand,” IHG CFO and group head of technique Paul Edgecliffe-Johnson mentioned Friday throughout an earnings name.
“This resulted in general enterprise room nights consumed down solely 12 p.c within the third quarter [compared with 2019], with the speed down lower than 5 p.c, a marked enchancment on the prior two quarters,” he mentioned. “Group demand has equally seen enhancements every quarter, and pricing is holding agency. Whereas room nights consumed have been nonetheless down practically 30 p.c [compared with 2019], fee was down solely 8 p.c.”
Additional, the Americas area, which accounts for about 73 p.c of IHG’s portfolio, reported the strongest outcomes for the quarter in contrast with different areas. Occupancy was 65.7 p.c, off about 8.2 share factors from the identical interval in 2019. Common every day fee was $124.84, up 1.3 p.c. Income per accessible room was $81.79, down about 9.9 p.c.
Vacation Inn Categorical and the corporate’s extended-stay manufacturers reached occupancy ranges of 70 p.c and 80 p.c, respectively, exceeding 2019 ranges for the quarter.
For the corporate globally, IHG third-quarter common occupancy was 58.8 p.c, down 14.7 share factors in contrast with the third quarter of 2019. Common every day fee was $114.71, down only one.1 p.c for the interval, whereas income per accessible room was $67.45, off by 20.8 p.c. The RevPAR efficiency confirmed “vital sequential enchancment” from the comparative declines of 51 p.c within the first quarter and 36 p.c within the second quarter, Edgecliffe-Johnson mentioned.
IHG opened about 12,300 rooms through the quarter for five.2 p.c year-over-year progress. 12 months so far, the corporate has opened 29,600 rooms, or 30 p.c greater than in 2020, and has greater than 889,000 room open in its portfolio. IHG signed 12,600 rooms through the quarter. “Signings accelerated over the course of the quarter, and this trajectory is anticipated to hold on by way of the fourth quarter,” Edgecliffe-Johnson mentioned.
IHG Q2 earnings
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