IHG’s Recovery Is Being Offset by Greater China Drag
Skift Take
China’s ongoing Covid crackdowns have put the brakes on an almost-there recovery for IHG Hotels & Resorts.
Thankfully, destinations like the U.S. and the UK are surging ahead, with cities including Miami, Austin, and London witnessing a particularly strong first quarter.
Overall the hotel group is almost back to pre-pandemic numbers — but the snag is Greater China and its localized travel restrictions.
In Greater China, first-quarter RevPAR — or revenue per available room, a key industry metric — was down 42 percent on 2019 (down 7 percent on 2021). Occupancy was at 36 percent, down 16 percentage points on 2019 levels.
“If we didn’t have China drag, we’d be looking better,” said Paul Edgecliffe-Johnson, chief financial officer and group head of strategy, during a first-quarter trading update investor call on Friday. “Until we have China fully
