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IHG HOTELS & RESORTS 22 October 2021 Highlights Significant improvement in trading , leading to Q3 group RevPAR ( 21 ) % vs 2019 ( + 66 % vs 2020 ) Average daily rate attained in line with 2019 levels ; occupancy of ~ 60 % achieved ● ● ● InterContinental Hotels Group PLC 2021 Third Quarter Trading Update Gross system growth of + 5.2 % YOY ; opened 12.3k rooms ( 79 hotels ) in Q3 ; opened 29.6k YTD , + 30 % vs 2020 Review of around 200 Holiday Inn and Crowne Plaza hotels on track ; over 90 hotels exited already or with an exit confirmed , and more than 40 committed to improvement plans or scopes of work Of 26.5k rooms removed YTD , 17.1k relate to Holiday Inn and Crowne Plaza in Americas and EMEAA Net system growth flat YOY ( + 1.9 % excluding the SVC portfolio termination in Q4 2020 ) Global system of 889k rooms ( 6,031 hotels ) ; 68 % across midscale segments , 32 % across upscale and luxury Signed 12.6k rooms ( 91 hotels ) in Q3 ; signed 45.2k YTD , + 13 % vs 2020 ; global pipeline 270k rooms Fee business cost savings of ~ $ 75m vs 2019 on track and sustainable in future years whilst still investing for growth Additional temporary cost savings in 2021 of ~ $ 25m Keith Barr , Chief Executive Officer , IHG Hotels & Resorts , said : " Trading continued to improve significantly in the third quarter . RevPAR recovered closer towards pre - pandemic levels as more and more guests returned to our hotels around the world . Domestic leisure demand was particularly strong in a number of markets over the summer , where occupancy and rate climbed back to 2019 levels . Discretionary business travel , group bookings and international trips have also shown increasingly encouraging signs , on top of continuing good levels of essential business demand . We continue to grow rapidly , opening 79 hotels in the quarter and signing another 91 in to our pipeline of 1,800 properties , and we expect development activity to pick up further over the remainder of the year . Across our portfolio of 17 brands , owner interest is strong both for those brands recently launched or acquired , in addition to our well - established and industry - leading brands . The rapid progress we are making with the review of the Holiday Inn and Crowne Plaza portfolios is also ensuring that we are well positioned for future growth . While we remain vigilant to fluctuating Covid restrictions in different markets , the pace of returning demand is very encouraging as travel increasingly re - opens in every region . The strength of our brands , platforms and scale gives us confidence in IHG's future prospects and of both exceeding prior levels of profitability and delivering industry - leading net system size growth in the coming years . " Regional performance Americas Q3 RevPAR was down 10 % vs 2019 ( up 76 % vs 2020 ) . US RevPAR was down 7 % vs 2019. Across the region , occupancy was 66 % , up from 60 % in the prior quarter . Holiday Inn Express saw occupancy rise to 70 % , while our Extended Stay brands achieved 80 % , exceeding 2019 levels . Demand was particularly strong over the peak summer vacation period - in July , across our near - 3,000 US hotels in non - urban locations , RevPAR was up 2 % vs 2019. Across our US franchised estate , which is weighted to domestic demand in upper midscale hotels , Q3 RevPAR declined by 4 % vs 2019 ; the US managed estate , weighted to upscale and luxury hotels in urban locations , declined by 31 % . We have continued to see more group activity and corporate bookings in recent months ; during September , there was sequential weekly improvement in demand , with particular strength from construction , logistics and technology business customers . Gross system growth was + 3.3 % YOY , with 2.9k rooms ( 30 hotels ) opened in the quarter . Net system reduction was 3.6 % YOY ( or 0.5 % excluding the SVC portfolio termination in Q4 2020 ) ; there were 5.7k rooms ( 32 hotels ) removed in the quarter , which included 3.3k Holiday Inn and Crowne Plaza rooms ( 16 hotels ) . 4.1k rooms ( 43 hotels ) were added to the pipeline in the quarter , representing a further sequential improvement in the signings pace . EMEAA Q3 RevPAR was down 43 % vs 2019 ( up 86 % vs 2020 ) . Occupancy rose to 49 % , improving from 34 % in Q2 . Reflecting the differing levels of market restrictions , particularly on international travel , there was a broad spread of performance within the region : Q3 RevPAR was down 22 % vs 2019 in the UK , 48 % in Continental Europe , 39 % in the Middle East , 57 % in Japan , and 68 % in both South East Asia & Korea and Australia . Hotels continued to reopen across the region ; just 28 or 2 % remained temporarily closed at the end of September , compared to 215 at the start of the year . Gross system growth was + 5.3 % YOY . In the quarter , 4.1k rooms ( 22 hotels ) were opened , while 1.3k rooms ( 7 hotels ) were removed ( which included 0.9k Holiday Inn and Crowne Plaza rooms ) , leading to net growth of + 1.7 % YOY . We signed 2.2k rooms ( 14 hotels ) in the quarter , half of which were conversions . 1