InterContinental hikes dividend as hotel sales cause revenue dip
INTERCONTINENTAL Hotels Group said sales from its guest rooms jumped last year thanks to strong growth in the US, despite the sale of two hotels causing overall revenue to slide.
The owner of Holiday Inn, Crowne Plaza and InterContinental said revenue per available room (Revpar) – a key industry measure – rose 6.1 per cent in the year to 31 December, led by a 7.4 per cent growth in the US, its largest region.
Overall revenue fell by two per cent to $1.86bn (£1.2bn), while operating profits were down three per cent to $651m compared with the previous year after the group sold hotels in San Fransisco.
The disposals brought in $400m last year and helped the IHG return $1bn to shareholders last year.
The hotelier, which hiked its full-year dividend by 10 per cent, will receive another $330m this year from the sale of its hotel in Paris.