Hotel group behind Holiday Inn Express rebounds after pandemic losses

Intercontinental Hotels Group, the international group behind the Holiday Inn, Holiday Inn Express and Crowne Plaza brands, has reported a modest profit after significant losses due to the pandemic in 2020.

The Buckinghamshire based chain reported a $48 million operating profit in the first six months of 2021, despite suffering $210 million losses over the same period last year as the coronavirus pandemic grounded international travel and tourism.

International Hotels Group is now expecting a further boost to profits during the remainder of the year as tourism and hotel occupancy pick up once more. Following the easement of coronavirus restrictions, the Holiday Inn Express in Stockport had returned to 70% occupancy in April and May 2021 after having previously only been open for key workers. Occupancy rates at the Stockport Exchange hotel have also outpaced the wider Greater Manchester hotels sector according to figures revealed by the Manchester Hoteliers’ Association.

Commenting on the group’s worldwide performance, Keith Barr, Chief Executive Officer, IHG Hotels & Resorts, said:

Trading improved significantly during the first half of 2021, with travel demand returning strongly as vaccines roll out, restrictions ease, and economic activity rebuilds. It has been great to see our teams welcome more and more guests back into our hotels, with domestic leisure bookings leading the way, particularly in the US and China. Essential business travel was a key element of our resilience throughout the pandemic, and we are now seeing more group activity and corporate bookings start to come back.”

IHG now plans to continue to expand its portfolio of hotels and continue with pre-pandemic growth plans; Keith Barr added:

The actions we have taken during the last 18 months position us well to exceed our pre-pandemic level of growth and profitability. While there is a risk of trading volatility in the balance of the year, and discretionary business trips, group bookings and international travel will take time to fully recover, we are confident in the strength of IHG’s future prospects.”