Rising hotel rates barely keeping up with inflation, says IHG
Room rates have not exceeded inflation in any of its markets, says InterContinental Hotels Group
IHG’s third quarter trading update, which published Friday, showed the company’s RevPAR was up 10.5% compared to third quarter 2022, and nearly 13% higher compared to the third quarter of 2019, which was before the pandemic.
Key takeaways
- Occupancy levels in the third quarter at IHG hotels was 72% - just 1% shy of pre-pandemic levels, according to the quarterly update. But average room rates have jumped well above 2019 levels - up nearly 6% in Greater China, 15% in the Americas, and 24% in Europe, Middle East, and Africa (EMEA) and Asia;
- The lack of flight capacity into China is below 50% of pre-pandemic levels, which is affecting travel recovery in cities like Beijing, Shanghai, Guangzhou and Shenzhen;
- The Israel-Hamas war could complicate ambitious tourism goals in Saudi Arabia and the United Arab Emirates.
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