InterContinental Hotels reports $1bn profit and announces buyback

Holiday Inn owner InterContinental Hotels Group (LSE: IHG) reported an 87% jump in 2023 pretax profit to over $1 billion and launched a new $800 million share buyback programme.

IHG’s revenue rose 19% to $4.62 billion, with growth seen across all regions. The company proposed a 10% higher final dividend of 104.0 US cents per share.

IHG cited “strong trading and financial performances” in 2023, with revenue per available room up 16% and 275 new hotels opened.

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It expects further growth ahead, forecasting a 4.0% compound annual expansion in the US through 2033 and 4.2% in China. “Current conditions remain supportive of industry growth,” IHG stated, eyeing a recovery in room rates and demand outpacing supply.

It targets high-single digit percentage increases in fee revenue annually amid positive trends.