InterContinental Hotels Group (IHG) disclosed today that it is noticing some "very early" signs of improved customer demand since seeing its revenue drop by more than half and profit slide 82 percent during the first half of 2020, thanks to the impact of the COVID-19 crisis.
IHG, parent company of the Holiday Inn, Crowne Plaza, Regent and Hualuxe hotel brands, suffered the same blow as other major hotel operators during the first half of 2020 because of the pandemic, and found itself striving to cut costs wherever possible while still returning its hotels to operation post-lockdown.
Through June 30, 2020, IHG's revenue fell 52 percent and reported an adjusted operating profit of $74 million, in comparison with the $410 million earned in the same period last year.
"The impact of this crisis on our industry cannot be underestimated, but we are seeing some very early signs of improvement as restrictions ease and traveler confidence returns," Chief Executive Officer Keith Barr said.
The company pointed to "small but steady" improvements in key indicators, such as revenue per available room (RevPAR). IHG's RevPar in July was down 58 percent after reaching an almost 75 percent low during 2020's second quarter.
Reuters reported that stock market shares in the company, which have slid by roughly 20 percent this year, had risen by as much as four percent today.
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