InterContinental Hotels said on Tuesday that it swung to a profit in the first half as trading recovered after it took a hit from the pandemic.
In the six months to 30 June, the Holiday Inn owner swung to an operating profit of $138m from a loss of $233m in the same period a year ago, with a “significant” improvement in demand over the course of the half, resulting in revenue per available room rising 20% versus 2020.
Chief executive officer Keith Barr said: “Trading improved significantly during the first half of 2021, with travel demand returning strongly as vaccines roll out, restrictions ease, and economic activity rebuilds.
“It has been great to see our teams welcome more and more guests back into our hotels, with domestic leisure bookings leading the way, particularly in the US and China. Essential business travel was a key element of our resilience throughout the pandemic, and we are now seeing more group activity and corporate bookings start to come back.”
Barr said these trends and the momentum in the business have continued in recent weeks, including in EMEAA, where a lifting of travel restrictions in some markets is driving improvements in demand.
The company, which also owns the Crowne Plaza hotels, among others, said that with occupancy and rate continuing to improve, nearly half of its hotels achieved RevPAR above 2019 levels in July.
Despite the improvement in trading, IHG said it won’t be paying an interim dividend.
