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Holiday Inn-Owner IHG Resumes Dividend After Annual Profit Beat

Published on Feb 22 2022 2:34 PM in Hotel tagged: Holiday Inn / InterContinental Hotels Group / IHG

Holiday Inn-Owner IHG Resumes Dividend After Annual Profit Beat

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.

RevPAR

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.

Final Dividend

The company proposed a final dividend of 85.9 cents per share.

Hilton And Marriott

Its American rivals Hilton Worldwide's HLT.N and Marriott's MAR.O results also topped market expectations last week.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.

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