IHG reported a 52% global RevPAR decline for the first half of 2020, while RevPAR in Greater China dropped 62% during the time. Global occupancy rate was down to 25%.
Total revenue for the first six months was USD 1,248 million, down by 45% year on year.
CEO Keith Barr revealed during the earnings call that the company made the decision in July to eliminate about 10% of its corporate staff.
The Greater China area generated USD 18 million in half-year revenue for IHG, and that's only 1.4% of the UK-based hotel chain's global income in the period.
Comparable RevPAR decreased 61.7% (Q2: down 59.2%), with occupancy in comparable hotels of 27% (Q2: 32%).
In Mainland China, RevPAR was down 59%. Tier 1 cities were down 67% (Q2: down 66%), impacted by their weighting toward international and group events and meetings demand. Tier 2-4 cities which are weighted more towards domestic and mainstream demand performed relatively better with a decline of 55% (Q2: down 50%).
RevPAR in Hong Kong was down 86% for the half, and down 90% in Q2, impacted by the reliance on inbound travel and the uncertainty posed by the political disputes, whilst Macau RevPAR was down 72% for the half.
For July, comparable RevPAR decline in the Greater China region is expected to be around 36%, representing a 13 percentage points improvement on the 49% decline for June. Occupancy levels in comparable open hotels improved to over 50%.
