Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2018-02-21
Room signings of 83k, (highest for nine years) takes the pipeline to 244k rooms. ~45% under construction.
Global comparable RevPAR growth of 2.7%, with 4.0% in Q4.
Keith Barr, Chief Executive of IHG, said:
"We delivered a strong performance in 2017, with RevPAR growth of 2.7% and net system size growth of 4.0%. This has driven an 8% increase in underlying operating profit and a 22% increase in underlying EPS, and underpins our decision to raise the total dividend by 11% for the year.
In recent years, we have built a powerful and effective enterprise which has supported our transition to being fully asset light, and driven strong performance across our 5,300 hotels. Today we are announcing a series of new initiatives that build on our well-established strategy and will drive an acceleration in our growth rate.
These initiatives are focused around redeploying and refocusing resources to leverage our scale; strengthening our loyalty programme; continuing to prioritise digital and technological innovation; enhancing our industry leading franchise proposition; strengthening our existing brands; and adding new brands where we see the greatest potential for growth.
We moved at pace to develop and roll-out the concept for our new mainstream brand, avid hotels. Since September we have signed 75 hotels, with the first due to open later this year and a global launch being planned. Building on this successful approach, we will launch a new upscale conversion brand in 2018, leveraging the power of our system to capture share of this significant premium priced market. We will also build out our development resource and capability in the sizeable global luxury segment, where we are looking to acquire small luxury brand(s) to incubate and grow.
In order for us to capitalise on the opportunities ahead, we are undertaking a comprehensive efficiency programme to realise ~$125m in annual savings for reinvestment to drive growth. This builds on our ongoing work to relentlessly manage costs, which has led to significant margin growth in recent years.
We remain positive in the outlook for the year ahead and we are confident that our ambitious plans will deliver a meaningful change in IHG’s growth and drive industry-leading net rooms growth over the medium term."
Strategic update - making our model work harder to deliver medium-term industry-leading net rooms growth (...)
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