Holiday Inn-owner InterContinental Hotels stated Monday it had raised 600 million pounds ($747 million) from Bank of England loans under the government’s coronavirus support scheme as it estimated a 25% plunge in world revenue per available room in Q1.
IHG, which announced a $150 million in cost reductions last month, stated it now had $2 billion in liquidity as it additionally amended its credit facility to include a waiver of present covenants until December 31, 2021.
Travel and leisure businesses have been among the worst hit by the coronavirus outbreak, with hundreds of billions of dollars in business trips and holidays canceled as nations impose sweeping bans.
The Crowne Plaza, Regent, and Hualuxe operator said around half of its motels in Europe, the Middle East, Asia, and Africa are closed, adding that efficiency in Greater China continues to improve with 12 out of 470 inns now closed steadily.
In the U.S., where half of the company’s inns are located, around 10% are closed.
IHG, which runs over 5,900 lodges worldwide, with almost 900,000 rooms across 100 nations, stated occupancy ranges incomparable open hotels are in the low to mid 20% range throughout the business.
It expects global RevPAR to plunge by 55% in March, in comparison with the 60% drop it had forecast earlier.