Feb 21, 2017
IHG keeps investors sweet as battles slowdown
InterContinental Hotels Group will return $400m to investors in a special dividend, despite continued signs that the company is being hit by the slowdown in the global hotel industry. On Tuesday, the group that owns the Crowne Plaza and Holiday Inn chains, reported that revenue per available room - the industry's preferred measure of sales - rose 1.8 per cent in the year ended December 31. Overall revenues fell 4.9 per cent per cent to $1.72bn, but excluding the effects of disposals in Hong Kong and Paris, revenues were up 4.6 per cent to $1.58bn. Analysts at Cenkos said the results were "Modestly ahead of expectations", pointing to underlying operating profits of $702m, ahead of consensus estimates of $695m. In February, IHG announced it would return $1.5bn to shareholders through a special dividend, as well as raising its full-year ordinary dividend by 10 per cent. In August, the company raised its interim dividend 9 per cent to 30 cents.
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