InterContinental Hotels Group reinstated its dividend as annual profits more than doubled on the back of a strong final quarter in the US and China driven by economic recovery after the Covid pandemic.
Operating profit for the 12 months to December 31 more than doubled to $534m as revenue per available room, a key metric, reached 70% of pre-pandemic 2019 levels. A dividend of 85.9 cents a share was declared after it was pulled the year before.
RevPar grew 71% in the fourth quarter, and 46% for the full year. Group revenue rose to $2.91bn from $2.39bn the year prior.
The company said demand had returned rapidly, led by removals of travel restrictions, vaccinations, and a revival of economic activity.
It added that discretionary business travel, group bookings and international trips had also more recently shown “encouraging” signs of recovery.
“The signs are encouraging that we are nearing the end of the pandemic, and we are confident in the strength of IHG’s enterprise, market positioning and ability to drive attractive levels of long-term, sustainable growth,” the company 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 Q4.”
