InterContinental Hotels Group has seen RevPAR plummet in the wake of Covid-19, with a forecast decline of 80% last month.
In a trading update, the hotelier said global RevPAR fell 25% overall in the first quarter, including a 55% decline in March.
In Q1, RevPAR fell 65.2% in China, 25.7% in Europe, the Middle East, Asia and Africa, and 19.3% in the Americas.
It has closed 1,000 hotels making up around 15% of the estate, with 440 hotels closed in the Americas and 560 in EMEAA.
At the remaining open hotels, IHG said occupancy had dropped to “historic lows” in March and April, with open hotels “in the low-to-mid 20% range”.
IHG said the weighting towards non-urban markets less reliant on inbound international travel provides “a level of resilience during this difficult period”.
The company is reducing salaries and incentives and working to reduce costs, including a cut to marketing spend.
IHG has agreed a covenant waiver on an existing $1.35bn revolving credit facility until the end of next year and extended a $1.275bn RCF for 18 months. It has also issued £600m under the Bank of England’s Covid Corporate Financing Facility.
Chief executive Keith Barr said: “Covid-19 represents the most significant challenge both IHG and our industry have ever faced. We are responding on every front and taking decisive action to the benefit of all our stakeholders.”
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