On October 20th, InterContinental Hotels Group (IHG) released key financial data for the third quarter ending on September 30, 2023.
The group’s revenue per available room increased by 10.5% year-over-year, surpassing pre-pandemic levels. Average daily rates and occupancy rates both saw a YoY growth of 4.1%. In particular, revenue per available room in Greater China surged by 43.2% compared to the same period last year, marking a 2.3% increase over the pre-pandemic levels of 2019.
IHG’s CEO, Elie Maalouf, stated, “On a Group-wide basis, RevPAR was up 10.5% on last year and up 12.8% versus 2019 levels. You will recall that we first saw Group RevPAR exceed 2019 in the third quarter last year. The 12.8% we are reporting today therefore marks the fifth quarter of sequential improvement ahead of pre-pandemic highs. Our Americas region was already ahead of 2019 from April last year with EMEAA also moving ahead a year ago. In this last quarter, the excellent rebound in Greater China means that it too has now completed its post-Covid recovery. In terms of the component parts of Group RevPAR for the quarter, pricing remained very robust with average daily rate up 4% versus last year and up 15% on 2019. Occupancy of 72% was four percentage points better than last year and at just one percentage point lower than 2019 is a further reflection of the near-complete return to pre-Covid levels of demand.”
In Greater China, revenue per available room increased by 43.2% compared to the same period last year and 9.3% compared to 2019. Among these, revenue per available room in first-tier cities decreased by 3% compared to 2019, reflecting the gradual recovery of cross-border tourism, while second to fourth-tier cities saw a 13% increase in revenue per available room compared to 2019.
The occupancy rate in Greater China was 67%, an increase of 14.1 percentage points compared to the previous year and 2.3 percentage points compared to 2019. The average daily room rate increased by 13% compared to the previous year and 5.6% compared to 2019.
Gross system size saw an 8.1% YoY growth, with 21 new hotels opened in the quarter, totaling 3,600 rooms. Net system size increased by 5.5% YoY, with 37 new hotels in development, totaling 6,900 rooms. Development activity in Greater China has improved steadily since the relaxation of pandemic restrictions last year, with this quarter seeing the highest number of new signed projects since 2021.
| Source: Official Financial Report
| Image Credit: IHG official site
| Editor: LeZhi