IHG reports 61% Q1 RevPAR gain YOY

IHG Hotels & Resorts, during the first quarter ended March 31, reported a group RevPAR increase of 61% versus the same period a year ago. U.S. hotel rates for the quarter surpassed 2019 levels due to a rise in occupancy.


  • Q1 group RevPAR up 61% vs. 2021 and attaining 82% of 2019’s level
  • ADR up 27% vs 2021 and in line with 2019
  • Americas and Europe, Middle East, Asia & Africa (EMEAA) saw sequentially improved trading in February and March after a challenging January
  • Greater China trading in March impacted by tightening of localized travel restrictions
  • Gross system size growth of +4.9% year-over-year (YOY), +0.7% year-to-date (YTD); opened 6.6K rooms (45 hotels) in Q1, broadly similar to 2021
  • Net system size growth of +3.4% YOY (adjusted for Holiday Inn and Crowne Plaza removals in 2021), +0.5% YTD
  • Global system of 885K rooms (6,028 hotels); 68% across midscale segments, 32% across upscale and luxury
  • Signed 16.6K rooms (120 hotels) in Q1, approximately 15% more than 2021 and 2020; global pipeline increased to 278K rooms

“We’ve seen very positive trading conditions in the first quarter with travel demand continuing to increase in almost all of our key markets around the world,” said Keith Barr, CEO, IHG Hotels & Resorts. “The high level of demand we have seen for leisure travel continues to drive increased rates and occupancy. We also continue to see a return of business and group travel, further supporting RevPAR improvements in many of our key urban markets. As occupancy levels rise and due to the strength of our brands, our hotels are seeing increased pricing power; in March, our hotels in the U.S. achieved leisure rates up by more than 10% on 2019 levels and rate across the whole of the U.S. business was 4% ahead. Trading in Greater China continues to be impacted by restrictions put in place to control rising COVID cases.”

He continued, “Our strategic focus on strengthening and expanding our brand portfolio continues to drive growth. We signed 17,000 rooms into our development pipeline in the first quarter, 15% more than in 2021. Our pipeline of 278,000 rooms increased 2.4%. Of the 120 hotels signed, there was a particularly strong performance in the Americas with a near-doubling of signings from 39 to 73. Luxury & lifestyle brands now account for around 20% of all signings, and—following the completion of our quality review in 2021—there were 52 signings across the Holiday Inn brand family and 14 for Crowne Plaza, together up 22% on last year. Our net system size is expanding, and we are pleased with the progress towards our ambition of delivering an industry-leading level of net rooms growth.”

Q1 RevPAR was down 8% vs. 2019 (up 58% vs. 2021). U.S. RevPAR was down 6% vs. 2019. Across the region, occupancy was close to 60%, down six percentage points on 2019, whilst rate was up 1%. Holiday Inn Express and IHG’s extended-stay brands exceeded 2019 levels of RevPAR. Demand was boosted by a strong spring break vacation period, with leisure rooms revenue 10% higher than 2019 for the quarter overall. Leisure demand is expected to remain strong in the coming quarters. Together with growth in corporate bookings and more group activity and events returning, this should support further progress in both occupancy and rate. Gross system size growth was +2.7% YOY, with 2.2K rooms (23 hotels) opened in the quarter. Net system size growth was 1.2% YOY on an adjusted basis (for the Holiday Inn and Crowne Plaza removals that occurred over the balance of 2021, driven by last year’s review of the estates of these two brands). A total of 7.8K rooms (73 hotels) were added to the pipeline, representing a further sequential improvement in the signings pace and exceeding the Q1 signings back in 2019.

Q1 RevPAR was down 33% vs. 2019 (up 122% vs. 2021). Occupancy was approaching 50%, down 21 percentage points on 2019, while rate was down just 4%. Previous restrictions, particularly on international travel, were generally being lifted over the course of the quarter in all markets, though the timing of these still resulted in a broad spread of performance within the region: Q1 RevPAR was down just 7% vs. 2019 in the Middle East and 15% in the U.K., while it was still 38% lower in Australia, 45% in Continental Europe, 58% in Southeast Asia & Korea and 64% in Japan.

Gross system size growth was +5.7% YOY, with 3.5K rooms (17 hotels) opened in the quarter. Net system size growth was 4.2% YOY on an adjusted basis. There were 2.3K rooms (15 hotels) added to the pipeline, around half being conversions.

Greater China
Q1 RevPAR was down 42% vs. 2019 (down 7% vs. 2021). Occupancy was 36%, down 16 percentage points on 2019, while rate was down 17%. The Winter Olympics boosted performance around Beijing, though overall Tier 2-4 cities continued to outperform Tier 1 cities. However, in March, travel restrictions implemented following increased Covid-19 cases led to RevPAR weakening to a 53% decline vs 2019, with around a third of the estate temporarily closed or repurposed.

Gross system size growth was +11.3% YOY, with 900 rooms (five hotels) opened in the quarter. Net system size growth was 9.9% YOY on an adjusted basis. There were 6.6K rooms (32 hotels) added to the pipeline.