IHG Hotels & Resorts released its Q1 2023 trading update. Highlights from the results include:
- Q1 group RevPAR up 33 percent versus 2022 with Americas up 18 percent, EMEAA up 64 percent, and Greater China up 75 percent
- Q1 group RevPAR up 6.8 percent versus 2019, with Americas up 11.1 percent, EMEAA up 9.7 percent, and Greater China 9.1 percent
- Average daily rate up 11 percent versus 2022, up 10 percent versus 2019; occupancy up 10 percentage points versus 2022, 2 percentage points versus 2019
- Gross system size growth up 5.8 percent YOY, up 0.9 percent YTD; opened 8,400 rooms (45 hotels) in Q1, ahead of 2022
- Net system size growth up 4.2 percent YOY on an adjusted basis, up 0.4 percent YTD
- Global system of 915,000 rooms (6,179 hotels); 66 percent across midscale segments, 34 percent across upscale and luxury
- Signed 16,500 rooms (108 hotels) in Q1, in-line with 2022; global pipeline of 287,000 rooms (1,906 hotels), up 3.3 percent YOY
Keith Barr, CEO, IHG Hotels & Resorts, said, “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.
The guest appeal of our brands has continued to support pricing with rate up 10 percent versus 2019 and occupancy now almost back to pre-COVID levels. For owners, the strength of our enterprise platform and investments we’ve made to enhance our portfolio and widen our offer continues to attract demand and drive growth. We signed over 16 thousand rooms across 108 hotels into our development pipeline in the quarter, in line with our performance in 2022. A third of all signings were across our six Luxury & Lifestyle brands, as we accelerate our growth in the segment.
We opened eight thousand rooms across 45 hotels in the quarter, and while financing challenges for the wider commercial real estate industry are holding back new hotel development and opening activity fully returning to normal, we anticipate improving levels as the year progresses. Meanwhile, conversions increased to be over a third of both openings and signings in the period.
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.”