Intercontinental Hotels Group (IHG) on Friday reports a jump in third-quarter earnings, with revenue per available room up from 2020.
Intercontinental is closing in on its pre-Covid revenue thanks to the easing of global policy on international travel.
The group said RevPAR (revenue per available room), a key performance indicator for the hotel industry, increased 66% for the July-September period, following a 53.4% decline in 2020. That figure, however, is down 21% from 2019.
“Domestic leisure demand was particularly strong in a number of markets over the summer, where occupancy and rates have recovered to 2019 levels,” said IHG CEO Keith Barr.
Travel and hospitality companies around the world are slowly recovering from a year-long pandemic, thanks to increased vaccination rates and easing restrictions.
However, new closures due to the spread of the highly contagious Delta variant, as well as pre-flight COVID-19 testing and remote work options, are still a significant constraint on the industry.
Revenue in IHG’s Americas region, representing the bulk of the group’s revenue, increased 76% in the quarter and was down 10% from 2019.
The group is targeting nearly $25 million in savings this year, having already confirmed it has sold or is in the process of selling 90 hotels.
Featured photo : © Intercontinental