InterContinental Hotels Group has unveiled strong full-year figures including a total gross revenue from all hotels in IHG’s system of $18bn, up 14% in constant currency.Other highlights include:
- System size increase of 5%, 28,848 net rooms, taking total to 585,094 (3,949 hotels).
- Global constant currency RevPAR growth of 7%. # Continuing revenue up 12% from
£786m to £883m, up 20% at constant currency.
- Continuing operating profit up 19% from £200m to £237m, up 30% at constant currency.
- Operating profit including discontinued operations up 6% from £231m to £245m.
- Adjusted continuing earnings per share up 23% from 38.0p to 46.9p. Total basic earnings per share of 72.2p.
- Final dividend up 12% to 14.9p. Total dividend of 20.6p, up 12%. £3.5bn returned to shareholders since March 2004.
- 2007 signings up 22% to 125,533 rooms (873 hotels). Fourth quarter signings of 41,908 rooms, taking pipeline to 225,872.
- January 2008 global constant currency RevPAR growth of 5.4%.
Commenting on the results and trading, Andrew Cosslett, Chief Executive of InterContinental Hotels Group PLC said:
“IHG delivered a strong performance in 2007 reporting continuing revenue growth of 20% in constant currency. The number of rooms in our system grew by a record 5% and global RevPAR increased 7%, with all our brands out-performing in their major markets across the world. We signed almost 900 hotels into our development pipeline during the year, more than three times the number signed in 2003, our first year as an independent company.
“We are continuing to strengthen our brands, and to expand their geographic reach. The 2005 relaunch of the InterContinental brand is now delivering major benefits, with significant RevPAR outperformance and a further 33 new hotels signed in the year. During the year we announced the relaunch of our biggest brand, Holiday Inn, and the response from our owner community has been very positive. Following continued success in the US, Hotel Indigo and Staybridge Suites will be opening in the UK in 2008, and we have plans for their wider geographic roll-out.
“We have the biggest development pipeline in the industry and this will deliver another high level of hotel openings in 2008. With our broadly based portfolio of brands and our resilient fee based business model we are positioned well for future growth in what is now a less predictable economic environment.”