Intercontinental Hotels have reported a boost in profits, thanks to strong performance across its Holiday Inn brand, and announce $1bn capital return to its shareholders.
The Group, with global headquarters in Buckinghamshire, reported that pre-tax profit of $178m in the three months to June, up from $111m last year.
Richard Solomons, chief executive of InterContinental Hotels Group PLC, said: “We have delivered good results in the first half with RevPAR growth from all regions through gains in both occupancy and rate.
“Our brands continue to perform well and we have achieved solid underlying margin growth, resulting in increased profits and strong cash flows.
“We are increasing the interim dividend by 31% reflecting these results, our previously stated intention to rebalance the interim and final dividend payments and our confidence in the future prospects of the business.
“Consistent with our asset light strategy and our strong track record of returning funds to shareholders, we today announce a $1bn return of capital. This recognises the expected proceeds from the ongoing disposal of InterContinental New York Barclay and our commitment to maintaining an investment grade credit rating.
“We continue to invest for growth, strengthening both our existing and our new brands, including EVEN Hotels and HUALUXE Hotels & Resorts. While the global economic environment remains uncertain, IHG continues to trade well and we are confident that our strategy will deliver high quality growth into the future.”
Image by ell brown