IHG reports global H1 operating profits of $338mn
Group announces special $350mn dividend for shareholders
InterContinental Hotels Group witnessed a 20% increase in operating profit to US $338 million in the first half of 2013 according to the group's interim results.
The group also reported a 3.7% growth in RevPAR and a 7% increase in revenue during the first six months.
IHG chief executive Richard Solomons said: “We have delivered a good performance in the first half, with our preferred brands driving RevPAR growth of 3.7%, including 4% in the second quarter. Our global scale has allowed us to reinvest in the business whilst growing margins, resulting in solid underlying profit gains led by our Americas region and strong cash flows.
"We continue to strengthen our foundation for future growth, signing more than 200 hotels into our pipeline, a notable increase on H1 2012 reflecting our owners’ confidence in both IHG and the industry demand drivers.”
Based on the strong numbers, IHG has created a special dividend of US $350 million for shareholders, which will be paid with the interim dividend in October 2013.
In the AMEA region, RevPAR was up 6.2% despite a 6% decrease in revenue to US $102 million.
The group opened six hotels with a total of 2000 rooms in the first half and has signed 10 more – including a Crowne Plaza in Oman – with 3000 rooms in total in the pipeline, up more than 80% year on year.
“Our high quality pipeline, broad geographic spread and fee based model give us confidence in the outlook, despite the ongoing challenging economic conditions in some of our markets,” added Solomons.