InterContinental Hotels Group PLC : Preliminary Results for the year to 31 December 2016
Richard Solomons, Chief Executive of InterContinental Hotels Group PLC, said:
“Our results clearly demonstrate our strong operational performance and the success of IHG’s long-term strategy, which have delivered a 9.5% increase in underlying profit and a 23% increase in underlying EPS. Our cash generative business model underpins our decision to announce a $400 million special dividend and to propose an 11% increase in the total dividend for the year. |
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InterContinental Hotels Group PLC : Preliminary Results for the year to 31 December 2016
Richard Solomons, Chief Executive of InterContinental Hotels Group PLC, said:
“Our results clearly demonstrate our strong operational performance and the success of IHG’s long-term strategy, which have delivered a 9.5% increase in underlying profit and a 23% increase in underlying EPS. Our cash generative business model underpins our decision to announce a $400 million special dividend and to propose an 11% increase in the total dividend for the year. |
Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2017-02-23
We continued our focus on enhancing the long-term sustainability of our competitive advantage by evolving our brand portfolio and by driving innovation in our digital and loyalty offer. We rolled out new formats across our Holiday Inn Brand Family which deliver significant uplifts in guest satisfaction and improved returns for owners, built momentum for our HUALUXE and EVEN Hotels brands, and took Kimpton Hotels & Restaurants and Hotel Indigo into new markets. We also strengthened our loyalty proposition through initiatives including ‘Your Rate’ helping to drive a 16% increase in member enrolments.
The fundamentals for the hospitality industry remain compelling. Despite the uncertain environment in some markets, we remain confident in the outlook for the year ahead, as well as our ability to deliver sustainable growth into the future.”
Financial Highlights
- Strong underlying revenue growth driven by both RevPAR and rooms
- Global comparable RevPAR up 1.8% (Q4: 1.7%), led by rate up 1.2%, and record occupancy levels.
- Net room growth of 3.1%, including 8.8% in Greater China. 40k room openings, ~90% in our priority markets.
- $24.5bn total gross revenue from hotels in IHG’s system (up 2% year-on-year; 4% CER).
- High quality business model, continuing margin growth and low capital intensity drives operating cash flows
- > 95% profit from the fee business; ~85% of fee revenue linked directly to hotel revenues.
- Group fee margin of 48.8%, up 3.3%pts (2.5%pts CER); strong progression through efficiency improvements.
- Net capital expenditure of $185m (gross $241m). Focused investments in brands and new Guest Reservation System, in which we will invest a further ~$90m in 2017 within existing capex guidance of up to $350m gross.
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