Holiday Inn-owner taps Bank of England loans as room revenue sinks

[BENGALURU] Holiday Inn-owner InterContinental Hotels said on Monday it had raised 600 million pounds (S$1.O65 billion) from Bank of England loans under the government's coronavirus aid scheme as it estimated a 25 per cent plunge in global revenue per available room in the first quarter.

IHG, which announced a US$150 million in cost cuts last month, said it now had US$2 billion in liquidity as it also amended its credit facility to include a waiver of existing covenants until Dec. 31, 2021.

Travel and leisure businesses have been among the worst hit by the coronavirus outbreak, with hundred of billions of dollars in business trips and holidays cancelled as countries impose sweeping restrictions.

The Crowne Plaza, Regent and Hualuxe operator said around half of its hotels in Europe, Middle East, Asia and Africa are shut, adding that performance in Greater China continues to steadily improve with only 12 out of 470 hotels now closed.

In the United States, where half of the company's hotels are located, around 10 per cent are closed.

IHG, which operates more than 5,900 hotels worldwide, with nearly 900,000 rooms across 100 countries, said occupancy levels in comparable open hotels are in the low to mid 20 per cent range across the business.

It expects global RevPAR to fall by 55 per cent in March, compared to the 60 per cent fall it had forecast earlier.

REUTERS