InterContinental Hotels Group announced today that it expects global RevPAR to drop by 25% in the first quarter of this year, of which the decline in March was as high as 55%, which is consistent with InterContinental's March performance update data.
Intercontinental said that Greater China's performance is steadily improving, with only 12 of the 470 hotels currently closed. In the US market, 10% of hotels are currently closed. 50% of hotels in Europe, Middle East, Asia and Africa (EMEAA) are closed. The comparable hotel occupancy rate of the group's overall opening is currently in the 20% -26% range (low to mid 20%).
In contrast, Marriott and Accor ’s performance in the first quarter of this year is not optimistic:
On April 15, Marriott initially estimated that the global RevPAR fell by 23% in the first quarter of this year. Global RevPAR is expected to fall by 60% in March, and RevPAR in Greater China has plummeted by more than 80%. However, the demand trend in Greater China has initially improved. During the Qingming period, the occupancy rate of more than 20 hotels exceeded 60%.
On April 24th, Accor released its first quarter financial report, with quarterly revenue of US $ 830 million (EUR 768 million), a 17% year-on-year decline. The overall RevPAR in the first quarter fell by 25.4% year-on-year, of which, RevPAR in China fell by 67.7%. However, the hotel occupancy rate and catering business in the Chinese market have already recovered.
Intercontinental also recently received a series of new financing and loan agreement arrangements to improve the company ’s liquidity:
* Intercontinental amended the syndicated revolving credit agreement, and the contract period of its existing loans can be extended to December 31, 2021.
* Intercontinental has been confirmed by the Bank of England to participate in the UK CCFF epidemic special loan project, and has issued 600 million pounds (about 740 million US dollars) of debt notes.
Intercontinental still has a cash deposit of US $ 1.35 billion, an unused bank loan of US $ 660 million, and a total of about US $ 2 billion in working capital.
