IHG shareholder profits expected to exceed US$1bn for first time

IHG shareholder profits expected to exceed US$1bn for first time

New US$800 million share buyback scheme will contribute to results

Operating profit at InterContinental Hotel Group (IHG) grew by 23% to more than US$1 billion for the first time in 2023.

The key metric of revenue per available room (revpar) grew by 16% year-on-year in strong trading following the lifting of Covid travel restrictions, which were still place in some parts on the world in 2022. 

The average daily rate achieved was up by 5% on the previous year and by 13% compared to 2019 as occupancy rose by six percentage points. This came as 275 hotels were opened, with almost 48,000 rooms. The group also signed a further 556 hotels as part of a global pipeline of 297,000 rooms across 2,016 hotels.

A new US$800 million share buyback scheme, which together with ordinary dividends, is expected to return more than US$1 billion to shareholders in 2024, according to the company.

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By Q4 2023, IHG's global revenue performance was ahead of 2019 levels. For the full year of 2023, leisure revenue was ahead of 2019 by 33% (13% room nights, 17% rate); business was ahead by 3% (-2% room nights, +5% rate) and although groups was still 5% lower (-7% room nights, +3% rate) it turned positive for the final quarter and groups revenue on-the-books was 17% higher year-on-year. 

Supporting the outlook for further revpar progress, total global revenue on‑the-books at 1 January 2024 was 16% higher than at the same point a year earlier.

IHG's mobile app and other mobile channels now account for 58% of all digital bookings.

Chief executive Elie Maalouf said: ”I was honoured to take over as IHG’s group CEO in July and would like to thank our teams for delivering an excellent set of results. Travel demand was strong across all markets, with revpar up 16% on last year and 11% ahead of the 2019 pre-pandemic peak. 

"Alongside strong trading and financial performances, we continued to grow our portfolio. We opened 275 hotels in 2023 and signed more than double that amount – 556 hotels – into our pipeline. 

“Adjusting for the effect of the Iberostar hotels joining IHG’s system, openings for the fourth quarter grew by 27% year‑on‑year and signings were up by 50%, representing one of our biggest ever quarters for development activity.”


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