‘Excellent year’ drives up profits at InterContinental Hotel Group

‘Excellent year’ drives up profits at InterContinental Hotel Group

InterContinental Hotels Group has reported an “excellent year”, with strong financial performance and the continued delivery of winning strategy.

Releasing results for the year to December 31st, IHG said underlying annual operating profit rose to $648 million at constant currency rates, on revenue up six per cent to $1.67 billion.

Richard Solomons, chief executive of InterContinental Hotels Group, said: “Last year was an excellent year for IHG as we delivered against our long-term winning strategy for high quality growth.

“We remain committed to reducing the capital intensity of the business and maintaining an efficient balance sheet with disposal proceeds received in the year of almost $400m and shareholder returns, including ordinary dividends, of over $1 billion.”

IHG achieved strong RevPAR performance growth of 6.1 per cent, and its best net system size growth since 2009 of 3.4 per cent, increasing operating profit on an underlying basis by ten per cent.

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Solomons added: “We expanded our brand portfolio and strengthened our position in boutique hotels, the fastest growing segment in the industry over the last five years, with the acquisition of Kimpton Hotels & Restaurants.

“The first properties for our innovative, consumer focused, Even Hotels and Hualuxe Hotels & Resorts brands are now open.

“Significant growth milestones were achieved across our established brands as we continue to strengthen our scale positions in the most important global markets.

“Looking into 2015, we face many macroeconomic and geopolitical uncertainties, but are confident that our strategy for high quality growth coupled with the momentum in the business positions us well for continued strong performance.”