InterContinental Hotels reports loss but sees improvement signs
By Sean Farrell
Date: Tuesday 11 Aug 2020
(Sharecast News) - InterContinental Hotels suffered a $233m (£178m) loss in the first half as occupancy at its hotels plunged during the Covid-19 crisis but reported signs of improvement.
The FTSE 100 company swung to an operating loss for the six months to the end of June from a profit of $442m a year earlier as revenue fell 45% to $1.25bn.
Revenue per available room dropped by 52% in the first half and by 75% in the second quarter as international travel came to a halt at the peak of the Covid-19 shutdowns.
The operator of Holiday Inn hotels said business was picking up as restrictions are relaxed and people start travelling again. July revenue per available room fell by about 58% in July and occupancy in comparable open hotels improved to about 45%, the company said.
Keith Barr, InterContinental's chief executive, said: "The impact of this crisis on our industry cannot be underestimated, but we are seeing some very early signs of improvement as restrictions ease and traveller confidence returns. Whilst the near-term outlook remains uncertain and the time period for market recovery is unknown, we are well positioned with preferred brands in the largest markets and segments, a leading loyalty platform and one of the most resilient business models in the industry."
The group took a net charge of $255m for exceptional items including $41m for trade deposits and loans that will not be recovered and $85m for the impaired value of assets such as property and equipment at hotels. As indicated before, the company paid no interim dividend.
InterContinental said it was on track to reduce fee business costs by $150m in 2020 and was targeting about half this level to be sustainable into 2021. The company had $2bn of liquidity at the end of June and July.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN