IHG Records Positive First Quarter Result: The Highlights
IHG Hotels & Resorts has announced an update on the first quarter reports of its trading, with very positive trading conditions in the first quarter with travel demand continuing to increase in almost all of its key markets around the world.
The high level of demand recorded for leisure travel continues to drive increased rates and occupancy. The hotel group also continues to see a return of business and group travel, further supporting RevPAR improvements in many of its key urban markets.
As occupancy levels rise and due to the strength of its brands, its hotels are seeing increased pricing power; in March. The group’s hotels in the US achieved leisure rates up by more than 10% on 2019 levels and rate across the whole of the US business was 4% ahead.
Americas and EMEAA saw sequentially improved trading in February and March after a challenging January. Trading in Greater China continues to be impacted by restrictions put in place to control rising Covid cases.
IHG's strategic focus on strengthening and expanding its brand portfolio continues to drive growth. The hotel group signed 17 thousand rooms into its development pipeline in the first quarter, 15% more than in 2021.
Its pipeline of 278 thousand rooms increased 2.4%. Of the 120 hotels signed, there was a particularly strong performance in the Americas with a near-doubling of signings from 39 to 73.
Luxury & Lifestyle brands now account for around 20% of all signings, and following the completion of its quality review in 2021 there were 52 signings across the Holiday Inn brand family and 14 for Crowne Plaza, together up 22% on last year.
IHG's net system size is expanding, with progress being made towards its ambition of delivering an industry-leading level of net rooms growth.