Net revenues were $353.2 million for the third quarter of 2020, a decrease of 24.2%, or $112.7 million, from $465.9 million for the same period of 2019, primarily due to the ongoing impacts of the COVID-19 pandemic.
Increased Capacity Drives Stronger Revenues and Lower CASM
Passenger traffic continues to reflect travel disruptions worldwide due to the COVID-19 pandemic
Following the release of InterContinental Hotels Group (IHG) Q3 2020 trading update, Ben Cordwell, Travel & Tourism Analyst at GlobalData offers his view on the companys results
Occupancy improved to 44% from 25% in Q2; 199 hotels (3% of estate) remained closed at 30 September
Marked Improvement in Operating Business – Organic Growth of 7,800 Rooms – Operational Sensitivity Confirmed for the Rest of the Year
Net revenue was $586 million, a decrease of 82.0% from the prior year quarter. Operating loss was $610 million, compared to operating income of $899 million in the prior year quarter. Net loss in the third quarter of 2020 was $731 million, compared to net income of $669 million in the third quarter of 2019. Consolidated adjusted property EBITDA was $(203) million, compared to $1.28 billion in the prior year quarter.
By now, most hoteliers are in the throes of budget season. Only this years version is unlike any before. COVID-19 has made it so. Hearing from hoteliers and other industry stakeholders, this years budget planning is not only cumbersome, but many, including one owner I spoke to, told me they have no idea where to even start.
The Baird/STR Hotel Stock Index dropped 7.1% in September to a level of 3,329. Year to date through the first nine months of 2020, the stock index was down 36.8%.
The Companys 23 open hotels in July generated $19.7 million of Total Hotel Revenues and $1.1 million of Hotel EBITDA