A business leader based in Portland, Oregon, Barclay Grayson is an executive member of the BPM Real Estate Group. Barclay Grayson presently guides developments such as the Portland area’s first Ritz-Carlton hotel at Block 216. Maintaining a close watch on the hospitality industry, he has an interest in how it is bouncing back from the pandemic.
One of the bellwether companies whose revenue trends reflect the broader market is IHG, which oversees Holiday Inn, Regent, Crowne Plaza, and Hualuxe locations worldwide. As reported in Reuters in late 2021, IHG has witnessed particularly robust growth in US corporate bookings, as well as in general business and international travel. The performance indicator RevPAR (hotel room revenue) rose by two-thirds in the third quarter, which brought it to levels only 7 percent off those achieved in 2019.
This positive showing followed a strong summer, when high domestic leisure travel demand pushed rate and occupancy to levels last seen in 2019. Behind this uptrend was a combination of easing restrictions, higher vaccination rates, and pent-up demand for travel. Overall, IHG’s Americas region generated 76 percent more revenue than the previous quarter, which was still 10 percent below 2019.
While this revenue rebound has helped the bottom line, IHG is still looking toward a target of $25 million in cost savings and has exited or planned exits in nearly 100 Crowne Plaza and Holiday Inn hotels.