IHG: Holiday Inn owner unveils another buyback as revenue and profit jumps
Total revenue at the British chain, which owns a number of affordable and high end hotel, also leaped £3.6bn.
Holiday Inn owner InterContinental Hotels Group (IHG) has announced a new share buyback and hiked its dividend 10 per cent after a bumper year.
The group published its final results for the year today which showed a 23 per cent leap in operating profit for £809m.
Total revenue at the British chain, which owns several affordable and high-end hotels, leapt £3.6bn.
Off the bank of these numbers, the company unveiled another share buyback worth $800m (£636m) as said it plans to return a total of $1bn (£800m) to shareholders this year. Last year it bought back shares worth $750m (£596m) and paid $245m (£195m) of dividends.
Elie Maalouf, chief executive, who stepped into the role last July, thanked a strong demand for travel for the boost in earnings.
He said: “Travel demand was strong across all markets, with RevPAR (revenue per available room) up 16 per cent on last year and 11 per cent ahead of the 2019 pre-pandemic peak.
“Combined with the power of our enterprise and efficient operating model, profit from reportable segments grew 23 per cent and exceeded one billion dollars for the first time, and adjusted EPS grew 33 per cent.”
“Alongside strong trading and financial performances, we continued to grow our portfolio and the global footprint of our brands. We opened 275 hotels in 2023 and signed more than double that amount – 556 hotels – into our pipeline.”
Shares in the hospitality group have barrelled to a new all-time high, and they are a top-ten performer in the FTSE 100, both in 2024 to date and over the past twelve months.
