Holiday Inn-owner IHG IHG.L resumed dividend on Tuesday 22 February after reporting an annual profit that beat market expectations due to strong demand for staycations and resort stays in the United States.
COVID-19 Pandemic's Impact
Hotel operators are still recovering from the COVID-19 pandemic's impact on travel, but analysts say the sector has already been through the worst and a strong pick-up is likely from March.
Statement By CEO
"While there may be unexpected challenges ahead, we are confident in our ability to respond and adapt to what consumers and owners need," CEO Keith Barr said.
Operating Profit From Reportable Segments
The owner of the Crowne Plaza, Regent, and Hualuxe hotel chains said that operating profit from reportable segments for the year ended 31 December was $534 million, compared with $219 million a year ago. It was down 38% from 2019 levels.
Analysts on average had estimated an operating profit from reportable segments at $503 million, according to a company-compiled consensus.
IHG's global hotel room revenue (RevPAR), a key performance indicator for the sector, was down 17% versus 2019 in the fourth quarter, with occupancy at 56%. RevPAR for Americas - its largest market - was down 7% in the last three months of 2021, while Greater China dropped 33% compared with pre-pandemic levels.
The company proposed a final dividend of 85.9 cents per share.