Thursday, January 20

Demand for hotel and office space increases as economies reopen – business live | Deal


Good morning and welcome to our ongoing coverage of the global economy, financial markets, the eurozone and business.

Demand for hotels and office space is picking up as economies reopen after pandemic lockdowns, according to two companies this morning … but concerns about the delta variant continue to weigh on the markets.

InterContinental Hotels Group (IHG) has reported a significant improvement in demand during the first half of 2021, with revenue per room (RevPAR, a key metric) up 20% in 2020.

IHG, which owns Holiday Inns, is experiencing the strongest recovery in China and the US, helping it realize an operating profit of $ 138 million for the six months to June 30, versus a loss of $ 233 million.

IHG it is also experiencing a recovery in business travel.

And while Europe lags behind in the first half, IHG says business has recovered in recent weeks as loosening of lockdown restrictions prompts families to take vacations again.

Keith Barr, CEO of IHG Hotels & Resorts, Explain:


“Trade improved significantly during the first half of 2021, and travel demand returned strongly as vaccines are rolled out, restrictions are eased and economic activity rebuilds.

It has been fantastic to see our teams welcoming more and more guests to our hotels, with national leisure reservations leading the way, especially in the US and China.

Essential business travel was a key element of our resilience during the pandemic, and now we are seeing more group activity and corporate bookings beginning to return. These trends and business momentum have continued in recent weeks, including in EMEAA, where the lifting of travel restrictions in some markets is also driving improvements in demand. With occupancy and the rate of continuous improvement, nearly 50% of our hotels achieved RevPAR above 2019 levels in July.

But nevertheless, IHG It will not pay an interim dividend for 2021, a reminder that conditions have not returned to normal as trading is considerably lower than in 2019.

Chris Bailey
(@Orbita_Financiera)

UK Stocks Today # 2 –

Listen to the CEO of IHG on BBTV: excited about business growth, but will not pay an interim dividend. “I still have a way to go.” I still think the restrictions will be in effect next year, ’23 = ’19. Places like London, San Fran, NY are a bigger problem for them pic.twitter.com/57d7xAmGkQ


August 10, 2021

IWG, the firm of offices with services, says it is seeing signs of recovery after posting a loss in the first half of the year, with revenue falling 15% year-on-year in January-June.

IWG, which owns the Spaces and Regus brands, says it has seen a “strong recovery in occupancy” in the second quarter in its major markets and anticipates a “future front-line recovery” thanks to the growth of hybrid work and the acquisition of new customers.

The company, a rival to WeWork, says that customer inquiries and retention rates have returned to pre-COVID-19 levels in the second quarter, reporting:

  • Very solid recovery in meeting room and day office use in Q2, with revenue increase of 39.9% compared to Q1 2021
  • Monthly EBITDA improvement during the second quarter
  • The United States shows the strongest recovery; June was a record month for space sold

It has reported a pre-tax loss from continuing operations of £ 162.7 million during the first half, compared to a loss of £ 237.3 million during the first half of 2020.

But IWG warns that the pace of recovery depends on continued easing of pandemic restrictions.

Mark Dixon, Executive Director of IWG plc, says the firm is “cautious optimism” about the second half of the year and expects a stronger recovery in 2022.


“Month-over-month improvements in our key operating metrics as we move into the summer months are encouraging and we anticipate this momentum to continue into the second half of 2021.

The significant shift to hybrid work has created unprecedented demand for our flexible work products. This fundamental change in the way people work is clearly a positive tailwind for IWG in the medium and long term and we are seeing increasing levels of interest from companies wanting to transform their working practices.

Chris Bailey
(@Orbita_Financiera)

UK Stocks Today # 5 –

IWG – can talk about ‘continuing to make progress with our franchise and association agreements … the pace of recovery continues to depend on the continued relaxation of pandemic restrictions in our markets.’ Expect to go back to 22, but still well below pre-Covid level pic.twitter.com/jyYEZryutq


August 10, 2021

Markets remain a bit subdued, and concerns about the spread of the Delta variant of the coronavirus weaken sentiment, pushing oil and metal prices lower yesterday.

Jeremy naylor
(@JeremyNaylor_IG)

#Tuesday #markets drift as #deltavariant cases increase. #CURRENCY up to 8% ahead of #Profits #crypto. #AMERICAN DOLLAR keeps profits on #Sharpen talk. #AUDUSD near 9-month lows falling in conf. of business. #Gold go back on the recent fall. For more: #EarlyMorningCall @IGcom 07:30 am UK – https://t.co/t7xbaLPqC7 pic.twitter.com/nWEfbKCXr3


August 10, 2021

IGSquawk
(@IGSquawk)

Much back to the August norm …..

European opening calls:#FTSE 7131 -0.02%#DAX 15752 + 0.04%#CAC 6816 + 0.04%#AEX 773 + 0.12%#MY B 26136 -0.01%#MOUNTAIN GOAT 8857 -0.10%#OMX 2385 + 0.00%#STOXX 4180 + 0.07%#IGOpeningCall


August 10, 2021

The agenda

  • 10 am BST: ZEW survey on eurozone economic sentiment
  • 11 am BST: NFIB Survey on US Small Business Confidence




www.theguardian.com

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