Business transient revenue at IHG Hotels & Resorts worldwide increased 6 percent year over year and was 3 percent higher than the third quarter of 2019, hotel company executives said Friday during an earnings call.
“Business revenue is above 2019 levels and the further normalization of global working habits has seen the return of more meetings, conferences and events, IHG CEO Elie Maalouf said on the call.
As has been the case throughout 2023 and across hotel companies, the post-pandemic recovery primarily has been driven by rising rates. IHG’s systemwide third-quarter average daily rate increased 4.1 percent to $130.20, helping to increase revenue per available room 10.5 percent to $93.22.
IHG systemwide third-quarter occupancy increased 4.1 percentage points to 71.6 percent, a figure largely driven by a 14.1 percent increase in China, which still is rebounding from the depths of its Covid-19 lockdowns.
In the Americas, occupancy increased 0.7 percentage points to 72.2 percent, while ADR rose 3.1 percent to $140.28 and RevPAR increased 4.1 percent to $101.26.
“As well as year on year RevPAR growth in each of our three regions, it was also pleasing to see rooms revenue growth for each of leisure, business and group travel,” Maalouf said in a statement.
IHG has nearly 1,980 hotels in its pipeline, totaling more than 292,000 rooms, the latter figure up 5.1 percent year over year.
