Aug 9, 2022
IHG launches $500mn buyback and raises dividend as travel demand rebounds
InterContinental Hotels Group, the owner of Crowne Plaza and Holiday Inn, is launching a $500mn share buyback and increasing its interim dividend to reward shareholders as leisure and business travel demand recovers to near pre-pandemic levels. Barr said the company's decision to issue an interim dividend of 43.9 cents per share, 10 per cent higher than the 2019 payment, along with announcing the share buyback, was part of IHG's "Long track record of returning surplus cash to shareholders". In June this year, business travel demand in the US was only 1 per cent down on June 2019, according to Barr. Globally, IHG reported revenues of $822mn in the first half of the year, down 17 per cent on the comparable period in 2019. Group-wide cost inflation came to 4 per cent so far this year, in large part because IHG runs a franchised model, operating and leasing less than 1 per cent of its hotels.
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