21 October 2022
Third Quarter Trading Update to 30 September 2022
Highlights
- Q3 group RevPARa +28% vs 2021; +2.7% vs 2019, with Americas +6.8%, EMEAA (0.1)% and Greater China (20.0)%
- Average daily rate +13% vs 2021, +11% vs 2019; occupancy +8%pts vs 2021, -6%pts vs 2019
- Gross system size growth +4.3% YOY; opened 8.0k rooms (51 hotels) in Q3, similar to Q2 and ahead of Q1
- Underlying removal rate -1.7% YOY; removals YTD equate to an annualised underlying rate of -1.3%
- Net system size growth +2.6% YOY on an adjustedb basis
- Global system of 888k rooms (6,061 hotels); 67% across midscale segments, 33% across upscale and luxury
- Signed 13.2k rooms (89 hotels) in Q3, similar to Q2 and last year; global pipeline of 278k rooms, +2.9% YOY
Keith Barr, Chief Executive Officer, IHG Hotels & Resorts, 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. Improvements in Greater China reflected the lifting of some of the Covid-related travel restrictions and, while the potential for further lockdowns there continues, we are pleased with overall group momentum.
Against a backdrop of inflationary pressure in most economies around the world, the strength of IHG’s brands is clear with rate up 11% on 2019. As well as leisure rates being up around 15% in the quarter, business rates were up by 7% and group activity also saw rate move into positive territory on 2019 levels. Employment levels globally remain high, which supports occupancy levels that are 8%pts up on last year and now just 6%pts below 2019. Demand has therefore remained robust, and more is still to return in a number of segments and countries.
The industry is experiencing lower levels of new hotel opening activity, and with a particular impact from the restrictions in China. Despite this, in this latest quarter, we opened 51 hotels and signed 89 more into our pipeline. In the year to date our newer brands grew to be 12% of signings, while conversions increased to be over 30% of openings. We are also achieving the expected lowering of the removal rate to around 1.5%, with this driven by the success of the review activity undertaken last year that further improved the quality and consistency of our estate.
We remain focused on our strategy to develop IHG’s portfolio of brands, invest in leading technology and transform our loyalty programme. These appeal very strongly to hotel owners to join our enterprise platform, and we continue to explore a number of organic opportunities to help deliver on our ambitions for net system size growth. 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.”
a RevPAR is presented on a comparable basis, comprising groupings of hotels that have traded in all months in both years being compared. Comparable hotel groupings will be different for comparisons between 2022 vs 2021, 2022 vs 2019, 2021 vs 2019 and 2020 vs 2019. See ‘Use of key performance measures and non-GAAP measures’ in IHG’s half year and full year results announcements for further information on the definition of RevPAR.
b Adjusted for: 1) the removal of Holiday Inn and Crowne Plaza rooms that occurred in Q4 2021, driven by the review that was completed that year with 34.3k (151 hotels) exiting IHG’s system for these two brands for the year as a whole, of which 17.6k (78 hotels) exited in Q1-Q3 and 16.7k (73 hotels) exited in Q4 2021; 2) the removal of 6.5k rooms (28 hotels) in Russia in Q2 2022, following IHG’s announcements regarding ceasing all operations in that country.
PDF 197Kb Download the full announcement of our Q3 2022 Trading Update
Ends
About IHG®
IHG Hotels & Resorts [LON:IHG, NYSE:IHG (ADRs)] is a global hospitality company, with a purpose to provide True Hospitality for Good.
With a family of 17 hotel brands and IHG One Rewards, one of the world's largest hotel loyalty programmes, IHG has over 6,000 open hotels in more than 100 countries, and more than 1,800 in the development pipeline.
- Luxury & Lifestyle: Six Senses Hotels Resorts Spas, Regent Hotels & Resorts, InterContinental Hotels & Resorts, Vignette Collection, Kimpton Hotels & Restaurants, Hotel Indigo
- Premium: voco hotels, HUALUXE Hotels & Resorts, Crowne Plaza Hotels & Resorts, EVEN Hotels
- Essentials: Holiday Inn Hotels & Resorts, Holiday Inn Express, avid hotels
- Suites: Atwell Suites, Staybridge Suites, Holiday Inn Club Vacations, Candlewood Suites
InterContinental Hotels Group PLC is the Group's holding company and is incorporated and registered in England and Wales. Approximately 325,000 people work across IHG's hotels and corporate offices globally.
Visit us online for more about our hotels and reservations and IHG One Rewards. To download the new IHG One Rewards app, visit the Apple App or Google Play stores.
For our latest news, visit our Newsroom and follow us on LinkedIn, Facebook and Twitter.
Contact details
For further information, please contact:
Investor Relations:
Stuart Ford (+44 (0)7823 828 739)
Aleksandar Milenkovic (+44 (0)7469 905 720)
Joe Simpson (+44 (0)7976 862 072)
Media Relations:
Amy Shields (+44 (0)7881 035 550)
Dan Winter (+44 (0)7423 793 352)
Conference call for analysts and institutional shareholders
Paul Edgecliffe-Johnson, Chief Financial Officer and Group Head of Strategy, will host a call commencing at 9:00am (London time) on 21 October. The live listen-only audio webcast can be accessed directly at https://www.investis-live.com/ihg/63404529bbaa6b0c0064cd38/fwjwq or via www.ihgplc.com/en/investors/results-and-presentations.
Analysts and institutional shareholders wishing to ask questions should use the following dial-in details for a Q&A facility:
UK: |
0800 640 6441 |
UK Local: |
0203 936 2999 |
US: | +1 855 979 6654 |
US Local: | +1 646 664 1960 |
All other locations: | +44 203 936 2999 |
Passcode: | 47 78 26 |
An audio replay will also be available for 7 days using the following details:
UK: |
0203 936 3001 |
US: | +1 845 709 8569 |
All other locations: | +44 203 936 3001 |
Passcode: | 41 20 85 |