April 27, 2020 / 6:41 AM / 2 months ago

Holiday Inn-owner taps Bank of England loans as room revenue sinks

An Intercontinental Hotel employee wearing a protective face mask and gloves in Bangkok, as the spread of the coronavirus disease (COVID-19) continues, Bangkok, Thailand, April 13, 2020. REUTERS/Jorge Silva

(Reuters) - Holiday Inn-owner InterContinental Hotels (IHG.L) said on Monday it had raised 600 million pounds ($747 million) from Bank of England loans under the government’s coronavirus aid scheme as it estimated a 25% plunge in global revenue per available room in the first quarter.

IHG, which announced a $150 million in cost cuts last month, said it now had $2 billion in liquidity as it also amended its credit facility to include a waiver of existing covenants until Dec. 31, 2021.

Travel and leisure businesses have been among the worst hit by the coronavirus outbreak, with hundred of billions of dollars in business trips and holidays cancelled as countries impose sweeping restrictions.

The Crowne Plaza, Regent and Hualuxe operator said around half of its hotels in Europe, Middle East, Asia and Africa are shut, adding that performance in Greater China continues to steadily improve with only 12 out of 470 hotels now closed.

In the United States, where half of the company’s hotels are located, around 10% are closed.

IHG, which operates more than 5,900 hotels worldwide, with nearly 900,000 rooms across 100 countries, said occupancy levels in comparable open hotels are in the low to mid 20% range across the business.

It expects global RevPAR to fall by 55% in March, compared to the 60% fall it had forecast earlier.

Reporting by Tanishaa Nadkar in Bengaluru; editing by Patrick Graham and Saumyadeb Chakrabarty

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