IHG Hotels & Resorts has reported a return to profit as a recovery in the global hospitality market gathers path.

The global giant saw profits of $494 million for financial 2021, up from a loss of $153 million last year.

Revenue for the year was also up 21 per cent, reaching $2.9 billion.

Keith Barr, chief executive of IHG Hotels & Resorts, said: “Trading improved significantly in 2021, with RevPAR getting closer to pre-pandemic levels as the year went on, profitability and cash flow rebounding strongly, and signings accelerating in quarter four.

“Working hand in hand, our colleagues and hotel owners have once again shown incredible efforts to navigate the ebbs and flows of recovery.

“As vaccination rates rise and restrictions are lifted around the world, we are seeing the demand for travel increase.

“While there may be unexpected challenges ahead, we are confident in our ability to respond and adapt to what consumers and owners need as we position IHG for strong future growth.”

IHG opened 44,000 rooms last year, spread across 291 hotels, an increase of 12 per cent on 2020.

Overall, the company now offers 880,000 rooms in 5,991 hotels around the world.

Barr continued: “Through our strategic priorities, we continue to build a better, stronger company for guests and owners.

“Our commitment to maintaining a high-quality estate and investing in operations, service and new designs is driving the success of our established brands.

“The addition of attractive new brands in multiple segments has opened up further growth opportunities globally.”