By Anthony O. Goriainoff
InterContinental Hotels Group PLC said Tuesday that it swung to pretax loss for the first half after booking higher costs, and that it wasn't declaring an interim dividend due to the coronavirus pandemic.
The FTSE-100 company--which owns the namesake hotel chain as well as the Holiday Inn and Crowne Plaza brands--said that for the six months ended June 30 pretax loss was $275 million compared with a pretax profit of $375 million for the first half of 2019.
Revenue for the half year was $1.25 billion compared with $2.28 billion for the year-prior period.
Global comparable revenue per available room--an important metric in the hotel industry--fell 52% in the period. The company said that small but steady improvements in occupancy and RevPAR in the second quarter continued into July.
The company said that it wasn't declaring an interim dividend due to the limited visibility of the pace and scale of market recovery.
"Whilst the near-term outlook remains uncertain and the time period for market recovery is unknown, we are well positioned with preferred brands in the largest markets and segments, a leading loyalty platform and one of the most resilient business models in the industry," the company said.