InterContinental Hotel Group, the United Kingdom-based lodger whose brands include Holiday Inn, Crowne Plaza and Staybridge Suites, saw revenue per available room drop 14.2 percent at its U.S. hotels in the first quarter.
"As expected the start of the year has been very challenging for the industry," Andrew Cosslett, the hotel giant's chief executive said in a note Tuesday. "Occupancy showed signs of stabilization in the quarter, but room rates, which held up well during 2008, declined under the pressure of a very competitive market."
Revenue per available room, or RevPAR, is an indicator of business health for hotels.
The chain's RevPAR slide for U.S. hotels, however, was better than the industry average, IHG officials said. Overall first-quarter RevPAR was down 17.7 percent across the U.S.
IHG's headquarters for the Americas is based in Atlanta. About two-thirds of the company's hotels are in the Americas.
Officials said mid-scale hotels, including Holiday Inn, showed the most strength in the quarter, which ended March 31. IHG is renovating Holiday Inn and relaunching the brand with new lobbies, rooms and designs.
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