IHG starts 2023 on a positive note

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Published on 05/05/23 - Updated on 05/05/23

IHG Q1 2023

IHG Hotels & Resorts performed well during the first quarter of 2023 with all indicators on the rise, returning to growth and financial balance. The beginning of this year is also marked by the step down of Keith Barr from his role as Group CEO.

After a good year 2022 regarding the financial results, IHG keeps up the momentum during the first quarter of 2023. The RevPAR during this period rose by 33% in comparison with the first quarter of0 2022. A good performance driven in particular by the increase in RevPAR in Greater China (+75%), followed by EMEAA (+64%) as well as Americas (+18%).

The RevPAR of Q1 2023 is also superior to the one of 2019 by +6.8% but this time the rise is the highest in the Americas region (+11.1%), followed by EMEAA (+9.7%) and Greater China (+9.1%). Increases made possible by the growth of the average daily rate, +11% vs 2022 and +10% vs 2019. The occupency rate also experienced an increase, +10 pts vs 2022 and +2 pts vs 2019.

The rose in Americas was driven by another strong Spring Break vacation period, leisure rooms revenue for the total estate was 11% higher than last year, and up 22% on 2019 levels. Regarding Greater China, the increase was the result of the reopening of the borders thus marking the rebound of the tourism.

With the opening of 45 new hotels, or 8 400 rooms, the gross system size grew by 5.8% on year on year basis and by 0.9% on year to date basis. The global system of IHG is now counting 915 000 rooms (6,179 hotels). A number that will continue to grow with 108 new hotels (16 500 rooms) signed during this first quater. IHG has now a pipeline of 287 000 rooms, or 1,906 hotels.

We’ve seen a good start to the year, with continued strong trading in both the Americas and EMEAA, and an excellent rebound in demand in Greater China since the lifting of travel restrictions. Leisure demand has remained buoyant, and there has been further return of business and group travel as expected. […] Whilst comparatives to 2022 get tougher from the second quarter onwards and there are ongoing economic uncertainties, IHG has continued to prove the resiliency of its business model and we remain confident about the strong tailwinds for attractive long-term, sustainable growth and value creation. We look forward to making additional progress over the course of 2023 in further evolving our brand portfolio, increasing RevPAR and expanding our system size.

Keith Barr, Chief Executive Officer, IHG Hotels & Resorts

The first quarter of 2023 is also marked by the announcement of Keith Barr to step down from his role as Group Chief Executive Officer (CEO) and from the IHG Board. His final day as CEO will be 30 June, after which he will remain available to support and advise the business until the end of 2023.

He will be succeeded by Elie Maalouf, a member of IHG’s Board and Executive Committee, who has led IHG’s Americas business as regional CEO for the past eight years. Elie Maalouf will take up his new position on 1 July and will be based in the UK to lead the business.

Elie Maalouf joined IHG as Americas CEO in February 2015. He led the delivery of record profits, oversaw the launch of new brands and formats, and strengthened how the business drives value for IHG’s hotel owners. He has spent several decades in the global hospitality sector and has a breadth of experience spanning hotel development, branding, finance, real estate and operations management, as well as F&B expertise.

I feel incredibly privileged to have spent three decades as part of IHG, working alongside the many talented colleagues that make it such a special company, and in partnership with our hotel owners who share our passion for hospitality. I have been lucky enough to experience this in multiple countries over the years and to have spent the last six as CEO has been an honour.

Keith Barr, Chief Executive Officer, IHG Hotels & Resorts

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