RevPAR growth boosts IHG results
London – 21 February 2017 –
InterContinental Hotels Group reported a slightly better-than-expected yearly profit rise and said it would return US$400 million to investors via a special dividend and share consolidation.
IHG, which runs hotels under brands such as Crowne Plaza, Holiday Inn and InterContinental, posted a 4 percent rise in operating profit to US$707 million, ahead of analysts’ estimate of about US$695 million according to a company-compiled consensus, Reuters reported.
For 2015, the company had reported comparable profit of US$680 million.
IHG said revPAR grew 1.7 percent year-on-year in the three months through December at its hotels worldwide, faster than the 1.3 percent reported in the third quarter.
RevPAR was helped by higher room rates and record occupancy levels, while profit was boosted by higher returns from its fee business, where the company franchises and manages hotels, rather than owning them.