By Adria Calatayud
InterContinental Hotels Group PLC said Friday that comparable revenue per available room for the third quarter fell, but less than in the previous quarter, as it achieved a positive cash flow and improved occupancy rates during the period.
The U.K.-based hotelier, which owns the namesake chain as well as the Holiday Inn and Crowne Plaza brands, said comparable revenue per available room--or RevPAR, a key industry metric--was down 53% for the third quarter. This followed a 75% decline in the prior quarter.
By region, quarterly RevPAR fell 50% in the Americas, 70% in Europe, Middle East, Asia & Africa and 23% in the greater China region.
IHG said occupancy improved to 44% in the third quarter from 25% in the second. A total of 199 hotels, or 3% of the group's estate, remained closed as of Sept. 30.
The company said it is on track to reduce fee business costs by around $150 million in 2020, and that it is targeting half this level to be sustainable into 2021.
"A full industry recovery will take time and uncertainty remains regarding the potential for further improvement in the short term, but we take confidence from the steps taken to protect and support our owners and drive demand back to our hotels as guests feel safe to travel," Chief Executive Keith Barr said.