InterContinental Hotels Group secures relaxed terms with lenders as pandemic disruption continues

InterContinental Hotels, owner of the Holiday Inn and Crowne Plaza chains, today told shareholders it has secured more breathing space as the pandemic continues to disrupt the travel and hospitality sectors. 

The FTSE 100 hotelier said in a financing and reports update that it has agreed relaxed terms with lenders, including further waivers of existing banking covenant checks.  The next covenant test is now due at the end of June 2022.

The firm, which operates 5900-plus hotels worldwide, had already secured headroom and emergency measures in April. 

Today it said lenders have also agreed to relax terms for its two covenant tests in 2022 "based on a theoretical severe downside scenario".