IHG, the hotels giant behind the Kimpton, Holiday Inn and InterContinental chains, said the average price of a room at its hotel has risen by almost 15% since 2019 as travel demand continues to rebound.
Revenue per available room, a key metric in the hotels sector, was up another 10.5% year-on-year in the third quarter of the year, as revenue in China exceeded 2019 levels for the first time. In the UK, revenue per room was up 18%.
Most of the growth has been driven by pricing, with average rates up 14.8% from pre-pandemic levels as leisure has been one of the sectors most affected by rising inflation. Occupancy is still below 2019 levels.
CEO Elie Maalouf said: “Travel demand remained very healthy during the quarter, and I would like to thank all our teams for supporting another strong trading period. Group-wide occupancy was 72%, just one percentage point behind 2019 which further confirms the near-complete return to preâCovid levels of demand.
“Pricing remained very robust. As well as yearâonâyear RevPAR growth in each of our three regions, it was also pleasing to see rooms revenue growth for each of leisure, business and group travel.”
Philip Baker, head of hotels at Gowling WLG, said: “The travel sector continues to demonstrate its resilience and benefit from the increased consumer demand despite the cost of living crisis.
“Indeed, the group continues to demonstrate its ability to continue generating cash flow in uncertain times on the back of continuous investment in Europe, the Middle East and Asia. Subsequently, its growth ambitions look increasingly positive as more consumers are capitalising on being able to travel freely again.
IHG opened 7,700 new rooms during the quarter, but Maalouf warned “short-term financing challenges” were holding back development of new properties.
The shares were down by 2.4% to 6006p, but are still up 24% this year and above pre-pandemic levels.
