Vacation Inn Owner IHG Resumes Dividend After Beating Full-Year Profits


A Holiday Inn hotel is seen in Tbilisi, Georgia June 8, 2016. REUTERS/David Mdzinarishvili

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Feb 22 (Reuters) – Holiday Inn owner IHG (IHG.L) resumed its dividend on Tuesday after reporting full-year profit that beat market expectations due to strong demand for hotel stays and vacation resorts. resort in the United States.

Hoteliers are still recovering from the impact of the COVID-19 pandemic on travel, but analysts say the sector has already weathered the worst and a strong recovery is likely from March.

“While there may be unexpected challenges ahead, we are confident in our ability to meet and adapt to the needs of consumers and owners,” said chief executive Keith Barr.

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The owner of the Crowne Plaza, Regent and Hualuxe hotel chains said operating profit for the reportable segments for the year ended Dec. 31 was $534 million, down from $219 million a year ago. It was down 38% from 2019 levels.

Analysts had on average estimated operating profit from reportable segments at $503 million, according to a consensus compiled by the company.

IHG’s global hotel room revenue (RevPAR), a key performance indicator for the industry, was down 17% from 2019 in the fourth quarter, with an occupancy rate of 56%. RevPAR for the Americas – its largest market – fell 7% in the last three months of 2021, while Greater China fell 33% from pre-pandemic levels.

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

Earnings from U.S. rivals Hilton Worldwide (HLT.N) and Marriott (MAR.O) also beat market expectations last week. Read more

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Reporting by Yadarisa Shabong in Bengaluru; edited by Uttaresh.V

Our standards: The Thomson Reuters Trust Principles.

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