The British hotel group fell into the red in the first half of the year, blaming the impact of the pandemic on its revenues due to the closure of a majority of its establishments during containment.
General manager Keith Barr called the impact of the new coronavirus “substantial”, notably because of a 25% drop in room occupancy levels (archives).
Keystone / AP / Ariana Cubillos
Over the six months ended at the end of June, IHG recorded a net loss, group share of 210 million dollars (nearly 192 million francs), against a profit of 306 million a year earlier, according to a statement released Tuesday.
Revenues plunged 45% to $ 1.25 billion over the period, eroding the group’s profitability despite the cost-saving measures taken to weather the crisis, including lower administrative costs and the cancellation of the dividend.
Substantial impact
Over the semester, the average revenue per room fell by 52% and by 75% in the second quarter, a more marked drop in Europe (-88%) and a little less in China where the economy, hit from December, restarted faster in 2020.
Chief Executive Officer Keith Barr called the impact of the new coronavirus “substantial”, notably because of a 25% drop in room occupancy levels.
However, he noted “very early signs of improvement as travel restrictions are reduced and traveler confidence is on the rise”, while declaring the outlook still “very uncertain”.
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