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"As
occupancy levels rise and due to the strength of our brands, our
hotels are seeing increased pricing power," IHG Chief Executive
Keith Barr said in a statement.
IHG said its RevPAR, or revenue per available room, was up 61%
over the same period in 2021, reaching 82% of pre-pandemic
levels in the three months ended March 31, with the Americas,
its largest market, leading the recovery.
The Crowne Plaza, Regent and Hualuxe owner said rates for
leisure stays rose more than 10% on 2019 levels in the United
States, but occupancy was still below pre-pandemic levels.
Higher vaccination rates and an easing in restrictions have
spurred an uptick in leisure and business travel, helping hotel
operators rebound, although a potential COVID-19 resurgence,
geopolitical tensions and rising inflation still pose a risk.
"With a cost-of-living crisis sweeping the globe, the group's
focus on a mid-tier value offering should hold it in good stead
to capture demand from an increasingly cash strapped consumer,"
Hargreaves Lansdown analyst Matt Britzman said.
Shares in IHG, which said its Greater China business remained
under pressure from restrictions put in place to control rising
coronavirus cases, were down 0.8% at 0713 GMT.
U.S. rival Marriott International said on Wednesday it expects a
key revenue metric for its U.S. and Canadian markets to hit
pre-pandemic levels for the rest of the year.
Meanwhile, Hilton Worldwide said on Tuesday a surge in labour
costs and other inflationary pressures are set to weigh on
earnings.
(Reporting by Shanima A in Bengaluru; Editing by Sherry
Jacob-Phillips, Sriraj Kalluvila and Alexander Smith)
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