Shares of Intercontinental Hotel Group (LON: IHG) today spiked 7.4% higher after the hotel chain reported that it made an interim loss of US$275 million in the six months ended June 2020, as compared to the $375 million profit it made in H1 2019.
The loss was attributed to the COVID19 restrictions and lockdowns, which saw occupancy rates in its Holiday Inn and Crowne Plaza hotel chains fall to a low of 25% at the height of the pandemic lockdowns.
The hotel group reported that revenues were down 45% during the period to $1.25 billion, but this did not derail its expansion plans as it opened 90 new hotels increasing its total room capacity to 883,000 hotel rooms spread over 5,900 hotels, with 288,000 rooms still under construction.
John Barr, IHG's CEO, said: “Together with other measures we've taken to preserve cash, we have maintained substantial liquidity of around US$2bn.”
Intercontinental Hotels share price
The firm did not announce an interim dividend and won’t be making any payments until trading conditions stabilise.