- Hotel chain InterContinental Hotels warned it expected its revenue per room to plummet, as demand for hotels was currently at the lowest levels it had ever seen amid the coronavirus outbreak.

A 60% drop in per-room revenue was expected during March, in light of global governments measures to restrict travel and social contact, the company said.

'Cancellation activity for April and May, and current booking trends, indicate continued challenging conditions,' it added.

In an effort to cut costs, the company had reduced salary and incentives across the business, including substantial decreases for board and executive committee members.

These measures would result in a reduction of up to $150m in its fee business costs.

On a more positive not, Intercontinental Hotels said it had started to notice early signs of a demand recovery in China, where the spread of COVID-19 has been curtailed.

'In Greater China we now have 60 hotels closed compared to 178 at the peak, and in recent days have begun to see improvements in occupancy, albeit at low levels,' the company said.

Global RevPAR had decreased 6% across January and February, with a broadly flat performance in the US offset by declines in Greater China, which saw an almost 90% decline in February.

InternContinental Hotels also said it had cut marketing spend, and said it had 'significant' headroom for either earnings (EBITDA) deterioration or an increase in net debt.

At 8:08am: [LON:IHG] Intercontinental Hotels Group PLC share price was +382p at 2767.5p

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