By Greg Wright

Published 5th May 2023, 08:30 BST

InterContinental Hotels Group (IHG) said that revenue per available room – a key metric for the hotel industry – rose by a third in the first three months of the year, compared to the same period in 2022.

Growth was most pronounced in Greater China, where revenue per room grew 75 per cent. The same figure increased by 64 per cent in Europe, the Middle East, Africa and much of Asia (EMEAA), the business said.

The figure rose 12 per cent in the UK, but fell by 9 per cent in Japan. In the Americas the figure was up 18 per cent compared with last year.

The owner of Holiday Inn has benefited from the reopening of China, it said on Friday, as it revealed that occupancy levels are close to what they were before the Covid-19 pandemic.

“We’ve seen a good start to the year, with continued strong trading in both the Americas and EMEAA, and an excellent rebound in demand in Greater China since the lifting of travel restrictions,” said chief executive Keith Barr.

“Leisure demand has remained buoyant, and there has been further return of business and group travel as expected.

“The guest appeal of our brands has continued to support pricing, with rate up 10 per cent versus 2019 and occupancy now almost back to pre-Covid levels.”

Mr Barr added: “We opened 8,000 rooms across 45 hotels in the quarter, and while financing challenges for the wider commercial real estate industry are holding back new hotel development and opening activity fully returning to normal, we anticipate improving levels as the year progresses.

“Meanwhile, conversions increased to be over a third of both openings and signings in the period.”

The business said that it was nearly a third of the way through its share buyback programme, which was announced in February and aims to return 750 million dollars (£594m) to its investors.

Holiday Inn owner receives boost as China lifts travel restrictions