IHG Cuts $150 Million in Costs as Revenue Plummets
IHG has limited options at a time like this. With travel demand falling, it has to cut costs and hope that this will be enough to see it through the crisis.
Demand for hotel rooms is at record lows, the company behind InterContinental and Holiday Inn hotels said on Friday, as it announced $150 million of cost cuts to help cope with travel restrictions and lockdowns caused by the coronavirus pandemic.
InterContinental Hotels Group (IHG) said it expected the revenue it gets globally from hotel rooms (RevPAR) to plunge by around 60% in March, with steeper declines in markets that have gone into lockdown.