Hotel giant laments toughest ever year

HOLIDAY Inn owners Intercontinental Hotels Group (IHG) has said that 2020 was the most challenging year in its history as the plunge in global travel dragged it into the red.

The FTSE 100 firm recorded an operating loss of $153 million (£109m) for the year after sales were cut by more than half.

Revenues plummeted by 52 per cent to $992m for the period as travel restrictions hit trading.

Keith Barr, chief executive officer, told investors that he expects that “more meaningful progress towards recovery for the industry” is unlikely to take place until later this year and will depend on vaccine roll-outs.

He added continental Europe was particularly affected by the pandemic, with revenue per room sliding 74% over the year.

Mr Barr said: “2020 was clearly the most challenging year in our history, with Covid-19 heavily impacting demand across our industry.

“Having demonstrated resilience and outperformed in 2020, we continue to work closely with owners to capture demand, alongside investing to capitalise on our industry’s long-term growth prospects.”

Shares were 86p, or 1.6%, lower at 5,226p.