InterContinental Hotels Group saw global RevPAR fall by half in March | News

InterContinental Hotels Group has sought to reassure markets with news it has secured new financing arrangements to strengthen its liquidity position.

Moves include amending its syndicated revolving credit facility to include a waiver of existing covenants until December 31st next year.

The amendment introduces a minimum liquidity covenant of $400 million, tested at half- and full-year, up to and including June 30th, 2021.

The Bank of England has also confirmed IHG is as an eligible issuer for the UK government’s Covid Corporate Financing Facility.

IHG has thus issued £600 million in commercial paper under this facility.

In total, the hotel giant now has access to $1.35 billion of cash on deposit and existing bank facilities are currently $660 million undrawn, taking total available liquidity to around $2 billion.

IHG said it had seen global RevPAR fall by a quarter over the past three months, with a 55 per cent decline in March.

However, trading in Greater China continues to “steadily improve”, the company added, with only 12 out of 470 hotels now closed.

Around ten per cent of hotels were closed in the United States, IHG said in a statement to markets, while the figure was closer to 50 per cent in Europe, Middle East, Australia and Africa.

Occupancy levels in comparable open hotels are currently in the low to mid 20 per cent range across the business, the statement added.

IHG said it would provide more information during a trading update on May 7th.

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