IHG shares down as CEO steps down and despite healthy Q1

Solomons said he would retire on June 30 and be replaced by chief commercial officer Keith Barr.

IHG said the later timing of Easter had a positive impact, especially in the Americas and Europe, which it expected to reverse in Q2.

The company said that despite the uncertain economic and political environment in some markets, it remained confident on the outlook for 2017.

“We continued our focus on building and leveraging scale in our priority markets, opening 49 hotels in the quarter, including our 300th for Greater China, and signing hotels into our pipeline at the fastest rate for the first quarter since 2008,” IHG said.

“We also strengthened our boutique portfolio with the opening of a Hotel Indigo property in downtown Los Angeles.”

IHG saw some recovery in oil producing regions of the US, after a prolonged downturn, while China saw RevPAR growth of 4.3% on the mainland, with Hong Kong and Macau both making positive progress too. Trading in the UK saw RevPAR up 12% as visitors took advantage of the weak pound.

Steve Clayton, manager of the £252m Hargreaves Lansdown Select UK Shares fund, which has a 4.1% position in IHG said Solomons' departure had overshadowed the first quarter figures.

“Under any other circumstances, these results would have been taken better. But Mr Solomons has a great track record of creating value for shareholders and the stock had enjoyed a strong run in recent weeks," he said.

"The underlying message is clear though; IHG continues to grow its estate, with a pipeline offering years of visible expansion that should feed through to steadily rising income, as long as the wider economy behaves itself. This visibility of growth is what attracts us to the stock, along with its structural bias toward the USA and China, both hugely attractive long term growth markets.”

IHG shares were 1.91% lower at 4098p at 1129 BST.