InterContinental Hotels Group saw revenue slump by 52 per cent in the first six months of financial 2020, with the hospitality giant bringing in just $488 million.
However, the company managed to report an operating profit of $74 million for the period, though this was down from the $410 million recorded last year.
The company cut all dividends to shareholders in the wake of the results.
Keith Barr, chief executive of InterContinental Hotels Group, said: “The impact of Covid-19 on our business has been substantial.
“Global RevPAR declined by 52 per cent in the first half and was down 75 per cent in the second quarter, when occupancy at comparable hotels fell to 25 per cent.”
Barr also agreed with recently analysis from both Marriott and Accor that the worst might be over.
He added: “Small but steady improvements in occupancy and RevPAR through the second quarter continued into July, with an expected RevPAR decline of 58 per cent, and occupancy rising to around 45 per cent.”
InterContinental Hotels Group has more than 5,000 properties worldwide, under brands including Crowne Plaza, Holiday Inn, Six Senses and Kimpton.
Barr continued: “The impact of this crisis on our industry cannot be underestimated, but we are seeing some very early signs of improvement as restrictions ease and traveller confidence returns.
“While the near-term outlook remains uncertain and the time period for market recovery is unknown, we are well positioned with preferred brands in the largest markets and segments, a leading loyalty platform and one of the most resilient business models in the industry.
“This gives us confidence in our ability to meet the needs of our guests and owners, and to emerge strongly when markets recover.”
He concluded: “As has been the case in previous downturns, domestic mainstream travel is proving to be the most resilient.
“Our weighting in this segment, led by our industry-leading Holiday Inn Brand Family, positions us well as demand returns in our key markets.
“In the US, our mainstream estate of almost 3,500 hotels is seeing lower levels of RevPAR decline than the industry, and is operating at occupancy levels of over 50 per cent.”
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