IHG in $750m share buyback as FY profits rebound from Covid

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InterContinental Hotels Group

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Global hotel chain operator IHG on Tuesday posted a rise in annual profits aided by higher room prices and announced a $750m share buyback as travel continued to rebound from the Covid pandemic.

The London-listed owner of Holiday Inn hotels said operating profit for the year to December 31 rose 55% to $828m. Revenue per available room (RevPAR) in the second half - a key industry metric - was ahead of pre-pandemic 2019.

"Looking to 2023, while there are economic uncertainties, we expect continued strong leisure demand in many markets, alongside further return of business and group travel and the ongoing reopening of China," said chief executive Keith Barr.

IHG, which also owns the Crowne Plaza and Kimpton chains, said the Americas market saw the strongest recovery, with RevPAR in the year up 3.3% from 2019, while Greater China fell 38% with pandemic travel restrictions still in place.

The latest additional buyback comes after the company said in August it would back shares worth $500 million.

Revenue rose 34% to $3.89bn, in line with expectations.

"In 2022 we saw demand return strongly in most of our markets, pushing group revenue per available room back close to 2019 levels and fee margin ahead," Barr said.

Reporting by Frank Prenesti for Sharecast.com