a8475x
SECURITIES
AND EXCHANGE COMMISSION
Washington
DC 20549
FORM 6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 AND 15d-16
OF
THE
SECURITIES EXCHANGE ACT OF 1934
For 7
May 2021
InterContinental Hotels Group PLC
(Registrant's
name)
Broadwater
Park, Denham, Buckinghamshire, UB9 5HJ, United Kingdom
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form
20-F
Form 40-F
Indicate
by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.
Yes
No
If
"Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): Not
applicable
EXHIBIT
INDEX
99.1
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2021
First Quarter Trading Update dated 7 May 2021
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Exhibit
No: 99.1
7 May
2021
InterContinental Hotels Group PLC
2021
First Quarter Trading Update
Highlights
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Improvement in
demand within the first quarter, led by the Americas and Greater
China.
●
Group RevPAR down
50.6% vs 2019 (down 33.7% vs 2020); continued industry
outperformance in key markets.
●
RevPAR reflects a
23%pts reduction in occupancy, with rate sustained at ~80% of 2019
levels.
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Occupancy of 40.0%,
improving through the quarter; 223 hotels (4% of estate) closed at
31 March.
●
Net system size
growth broadly flat YTD; global estate 884k rooms (5,959
hotels).
●
Opened 7.3k rooms
(56 hotels); 5.8k added to Essentials and Suites brands, 1.5k in
Premium, Luxury & Lifestyle.
●
Removed 9.5k rooms
(61 hotels); 6.3k (31 hotels) for Holiday Inn and Crowne Plaza in
Americas and EMEAA.
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Signed 14.5k rooms
(92 hotels), ahead of Q1 last year; total pipeline increased to
274k rooms (1,820 hotels).
●
Repaid £600m
UK Government CCFF at maturity; total available liquidity at 31
March of $2.1bn.
Keith Barr, Chief Executive Officer, IHG Hotels & Resorts,
said:
“Trading
continued to improve during the first quarter of 2021, with IHG
maintaining its outperformance of the industry in key markets and
seeing strong performance in openings and signings as we expand our
brands around the world. There was a notable pick-up in demand in
March, particularly in the US and China, which continued into
April. While the risk of volatility remains for the balance of the
year, there is clear evidence from forward bookings data of further
improvement as we look to the months ahead.
The
improved Group RevPAR performance was led by the Americas, which
strengthened to -43% versus 2019 levels compared to -50% in Q3 and
Q4 2020. In EMEAA, the continuation of lockdowns across much of the
region meant RevPAR levels were largely unchanged from the prior
two quarters. In Greater China, after temporary domestic travel
restrictions were lifted, demand recovered quickly in March towards
levels seen in the second half of 2020.
We
opened a further 56 hotels during the quarter, and these new
openings broadly offset hotels removed as part of our continued
focus on maintaining the highest quality estate for our guests.
Linked to this, we are making good progress on our review of the
Holiday Inn and Crowne Plaza estates. Our pipeline grew with 92
signings in the quarter, driven by our industry-leading midscale
brands and continued strong owner appetite for conversion
opportunities, particularly in our Premium and Luxury &
Lifestyle categories. This includes conversions to our voco brand,
which has achieved over 50 signings in more than 20 countries in
fewer than three years since launch.
As the
rollout of vaccines becomes more established, travel restrictions
lift, and economic activity rebuilds, traveller demand will
continue to grow and generate further momentum in an industry
recovery over the course of the year. Coupled with our resilience
as a business and the important work we’re doing to support
our owners, develop our brands and expand our pipeline, we’re
confident that IHG is well positioned for sustained
growth.”
Regional performance
Americas
RevPAR
was down 43.0% vs 2019 (down 28.1% vs 2020). Occupancy was 46%,
compared to quarters 1-4 of 2020 of 54%, 28%, 46% and 42%,
respectively. US RevPAR was down 40.4% vs 2019, with our
performance continuing to be ahead of the industry. Our US
franchised estate, which is weighted to domestic demand in upper
midscale hotels, declined by 36% vs 2019, whilst the US managed
estate, weighted to upscale and luxury hotels in urban locations,
declined by 73%. There was a notable pick-up in demand in March,
benefiting in particular from leisure trips around the Spring Break
period. The improvement in trading continued into April, with the
booking window extending on strengthening demand for the summer
vacation season.
Our
estate was 99% open at the end of March across the Americas. Of the
54 hotels still temporarily closed, there remains a greater
proportion of upscale and luxury hotels, and also of those in the
managed estate.
Gross
system growth was 0.8% YTD, with the opening of 4.1k rooms (39
hotels); after the removal of 7.3k rooms (47 hotels), which
included 4.5k Holiday Inn and Crowne Plaza rooms, net growth was
(0.6)% YTD. The pace of signing activity has picked up sequentially
over recent quarters. There were 3.7k rooms (39 hotels) added to
the pipeline in the quarter, representing 21 hotels across our
Essentials brands and 18 across our Suites
brands.
EMEAA
RevPAR
was down 71.4% vs 2019 (down 62.0% vs 2020). Occupancy was 27%,
compared to quarters 1-4 of 2020 of 54%, 14%, 31% and 29%,
respectively. The performance by region continued to predominately
reflect the differing levels of government-mandated closures and
restrictions, with RevPAR vs 2019 down 75% in the UK, 87%
Continental Europe, 75% Japan, 73% South East Asia and Korea, 51%
Australia and 49% Middle East.
Hotel reopenings
continued, with 165 hotels or 14% of the EMEAA estate still
temporarily closed at the end of March, compared to 215 at the
start of the year; eight of the 17 owned and leased hotels remained
temporarily closed.
Gross
system growth was 0.3% YTD, with the opening of 703 rooms (5
hotels); 2.0k rooms (13 hotels) were removed in the quarter,
resulting in net growth of (0.6)% YTD. We signed 3.0k rooms (13
hotels) in the region, weighted to conversions.
Greater China
RevPAR was down
37.7% vs 2019, and up 78.2% vs 2020. Occupancy was 40%, compared to
quarters 1-4 of 2020 of 22%, 32%, 57% and 57%, respectively.
Increases in Covid-19 cases and the reintroduction of temporary
restrictions impacted RevPAR in January and February, though the
recovery resumed in March with demand returning towards levels
already seen in the second half of last year. As has been the case
in previous quarters, in Mainland China the RevPAR decline was
greatest in Tier 1 cities with a 41% decline vs 2019, whilst Tier
2-4 cities, which are more weighted to domestic and leisure demand,
performed better with a decline of 27%.
Gross
system growth was 1.7% YTD, with the opening of 2.5k rooms (12
hotels); 191 rooms (1 hotel) was removed in the quarter, resulting
in net growth of 1.6% YTD. We signed 7.9k rooms (40 hotels) in the
region, including 25 across the Holiday Inn Brand
Family.
For further information, please contact:
Investor
Relations (Stuart Ford; Rakesh Patel; Kavita Tatla)
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+44
(0)1895 512 176
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+44
(0)7527 419 431
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Media
Relations (Yasmin Diamond; Mark Debenham)
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+44
(0)1895 512 097
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+44
(0)7527 424 046
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Conference call for analysts and shareholders:
A
conference call with Paul Edgecliffe-Johnson, Chief Financial
Officer and Group Head of Strategy, will commence at 9:00am (London
time) on 7 May 2021 and can be accessed at www.ihgplc.com/en/investors/results-and-presentations.
Analysts
and institutional shareholders wishing to ask questions should use
the following dial-in details for a Q&A facility:
UK
local:
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0203
695 9549
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UK:
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0800
358 1088
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US:
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+1 833
829 1091
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All
other locations:
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+44 203
695 9549
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Passcode:
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53 55
68
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An
audio replay will also be available for 7 days using the following
details:
UK:
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0203
936 3001
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All
other locations:
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+44 203
936 3001
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Passcode:
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71 89
18
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Website:
The
full release and supplementary data will be available on our
website from 7:00am (London time) on 7 May. The web address is
www.ihgplc.com/en/investors/results-and-presentations.
About IHG Hotels & Resorts:
IHG Hotels & Resorts [LON:IHG, NYSE:IHG (ADRs)] is a
global hospitality company, with a purpose to provide True
Hospitality for Good.
With a family of 16
hotel brands and IHG Rewards,
one of the world’s largest hotel loyalty programmes, IHG has
nearly 6,000 open hotels in more than 100 countries, and a further
1,800 in the development pipeline.
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Premium: HUALUXE Hotels &
Resorts, Crowne
Plaza Hotels
& Resorts, EVEN
Hotels, voco
Hotels
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Luxury and lifestyle: Six Senses Hotels
Resorts Spas, Regent
Hotels & Resorts, InterContinental
Hotels & Resorts, Kimpton Hotels &
Restaurants, Hotel
Indigo
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Essentials: Holiday Inn Hotels
& Resorts, Holiday Inn
Express, avid
hotels
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Suites: Atwell Suites,
Staybridge
Suites, Holiday Inn Club
Vacations, Candlewood
Suites
InterContinental
Hotels Group PLC is the Group’s holding company and is
incorporated in Great Britain and registered in England and Wales.
Approximately 350,000 people work across IHG’s hotels and
corporate offices globally.
Visit
us online for more about our hotels and
reservations and IHG Rewards.
For our latest news, visit our Newsroom and
follow us on LinkedIn,
Facebook and
Twitter.
Appendix 1: RevPAR movement summary
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Q1 2021 vs 2019
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Q1 2021 vs 2020
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RevPAR
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ADR
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Occupancy
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RevPAR
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ADR
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Occupancy
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Group
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(50.6)%
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(22.1)%
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(23.3)%pts
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(33.7)%
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(20.4)%
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(8.0)%pts
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Americas
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(43.0)%
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(20.4)%
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(18.1)%pts
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(28.1)%
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(17.1)%
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(7.0)%pts
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EMEAA
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(71.4)%
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(28.8)%
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(40.8)%pts
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(62.0)%
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(25.4)%
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(26.0)%pts
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G.
China
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(37.7)%
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(18.3)%
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(12.8)%pts
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78.2%
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(6.8)%
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19.3%pts
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Appendix 2: RevPAR movement at constant exchange rates (CER) vs.
actual exchange rates (AER)
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Q1 2021 vs 2019
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Q1 2021 vs 2020
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CER
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AER
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Difference
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CER
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AER
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Difference
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Group
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(50.6)%
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(50.1)%
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0.5%pts
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(33.7)%
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(32.6)%
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1.1%pts
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Americas
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(43.0)%
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(43.2)%
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(0.2)%pts
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(28.1)%
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(28.0)%
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0.1%pts
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EMEAA
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(71.4)%
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(70.4)%
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1.0%pts
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(62.0)%
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(60.1)%
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1.9%pts
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G.
China
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(37.7)%
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(35.3)%
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2.4%pts
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78.2%
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90.2%
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12.0%pts
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Appendix 3: monthly RevPAR
2021 vs 2019
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Jan
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Feb
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Mar
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Group
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(52.5)%
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(53.8)%
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(46.6)%
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Americas
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(45.1)%
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(45.4)%
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(39.4)%
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EMEAA
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(71.1)%
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(72.7)%
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(70.6)%
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G.
China
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(41.5)%
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(51.1)%
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(23.2)%
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2021 vs 2020
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Jan
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Feb
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Mar
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Group
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(51.7)%
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(47.7)%
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20.8%
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Americas
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(44.2)%
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(44.2)%
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20.7%
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EMEAA
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(72.2)%
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(69.7)%
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(21.5)%
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G.
China
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(21.9)%
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335.0%
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288.6%
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2020 vs 2019
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Jan
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Feb
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Mar
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Apr
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May
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Jun
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Jul
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Aug
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Sep
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Oct
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Nov
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Dec
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Group
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(1.5)%
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(10.8)%
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(55.1)%
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(81.9)%
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(75.6)%
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(67.4)%
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(58.1)%
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(51.0)%
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(50.9)%
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(51.9)%
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(55.3)%
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(52.4)%
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Americas
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0.2%
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(0.9)%
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(49.0)%
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(80.1)%
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(72.5)%
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(62.0)%
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(54.0)%
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(48.6)%
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(46.4)%
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(48.0)%
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(51.4)%
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(49.5)%
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EMEAA
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2.1%
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(11.3)%
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(62.7)%
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(89.3)%
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(88.5)%
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(85.3)%
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(74.7)%
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(66.3)%
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(69.9)%
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(70.5)%
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(72.4)%
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(68.6)%
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G.
China
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(24.6)%
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(89.3)%
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(81.4)%
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(71.2)%
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(57.1)%
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(48.6)%
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(35.9)%
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(20.2)%
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(11.0)%
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(16.9)%
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(22.5)%
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(15.1)%
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Appendix 4: Q1 2021 system and pipeline summary of movements and
total closing position (rooms)
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System
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Pipeline
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Openings
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Removals
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Net
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Total
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YTD%
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YOY%*
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Signings
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Total
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Group
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7,274
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(9,491)
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(2,217)
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883,819
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(0.3)%
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0.3%*
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14,523
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273,883
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Americas
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4,116
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(7,318)
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(3,202)
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510,810
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(0.6)%
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(2.5)%*
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3,658
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100,268
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EMEAA
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703
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(1,982)
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(1,279)
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226,570
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(0.6)%
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2.4%
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3,007
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77,835
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G.
China
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2,455
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(191)
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2,264
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146,439
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1.6%
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7.2%
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7,858
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95,780
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*Excluding
the SVC portfolio termination of 17k rooms in Q4 2020, net system
growth YOY to Q1 2021 was 2.2% for the Group and 0.8% for
Americas
Appendix
5: definitions
RevPAR, ADR and occupancy: RevPAR (revenue per available
room), ADR (average daily rate) and occupancy are on a comparable
basis, based on comparability at the end of the relevant period and
hotels that have traded in all months in both periods being
compared. The principal exclusions in deriving these measures are
new openings, properties under major refurbishment and removals.
These measures include the adverse impact of hotels temporarily
closed as a result of Covid-19. Monthly RevPAR reflects those
hotels which have been designated as comparable at the end of the
respective quarterly period. RevPAR and ADR are on a CER basis
unless otherwise stated.
AER: actual exchange rates used for each respective
period.
CER: constant exchange rates with 2021 exchange rates
applied to each comparable period in 2020 or 2019
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Cautionary note regarding forward-looking statements:
This
announcement contains certain forward-looking statements as defined
under United States law (Section 21E of the Securities Exchange Act
of 1934) and otherwise. These forward-looking statements can be
identified by the fact that they do not relate only to historical
or current facts. Forward-looking statements often use words such
as ‘anticipate’, ‘target’,
‘expect’, ‘estimate’, ‘intend’,
‘plan’, ‘goal’, ‘believe’ or
other words of similar meaning. These statements are based on
assumptions and assessments made by InterContinental Hotels Group
PLC’s management in light of their experience and their
perception of historical trends, current conditions, expected
future developments and other factors they believe to be
appropriate. By their nature, forward-looking statements are
inherently predictive, speculative and involve risk and
uncertainty. There are a number of factors that could cause actual
results and developments to differ materially from those expressed
in or implied by, such forward-looking statements. The main factors
that could affect the business and the financial results are
described in the ‘Risk Factors’ section in the current
InterContinental Hotels Group PLC’s Annual report and Form
20-F filed with the United States Securities and Exchange
Commission.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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InterContinental Hotels Group PLC
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(Registrant)
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By:
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/s/ F. Cuttell
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Name:
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F.
CUTTELL
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Title:
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ASSISTANT
COMPANY SECRETARY
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Date:
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7 May 2021
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