IHG: Demand for hotels lowest we've ever seen

The group, whose brands include Crowne Plaza and Holiday Inn, said it was “challenging” all discretionary costs, including reducing salaries and incentives – which it said included “substantial decreases” for members of its board and executive committee.

“These measures will result in a reduction of up to $150 million in our fee business costs,” said the group in a trading update issued on Friday morning (20 March).

It has also reduced marketing spend, while its leased and managed hotels will be permitted to delay renovations and temporarily relax brand standards to reduce costs.

Other efforts to protect cash flow include reducing capital expenditure by around $100 million compared with 2019. IHG will issue a first-quarter trading update on 7 May.