IHG proposes 10% increase for 2015 shareholder dividends
Strong preliminary results for InterContinental Hotels Group (IHG) to 31 December 2015 have enabled the company to increase the total dividend to shareholders for the year by 10%.
IHG said the decision reflected the company's confidence in the future prospects of the business.
The firm's operating profit increased by 4% to $680m (£482m) compared with 2014 but its reported revenue decreased by 3% to $1,803m (£1,277m). However, IHG's underlying revenue was shown to have increased by 8% to $1,522m (£1,079m).
Global comparable revenue per available room (revpar) was up 4.4% with revpar growth experienced across all regions. UK revpar increased by 5.1%, led by rate growth in both London and the provinces.
The company recently marked its 5,000th worldwide opening with the launch of the 293-bedroom Hotel Indigo Lower East Side New York.
Richard Solomons, chief executive of IHG, said: "Our strong momentum in 2015 was driven by a clear strategy and disciplined execution. We delivered our highest room openings since 2009, our best signings since 2008, 11% underlying profit growth and 19% underlying EPS growth."
He added: "We have strengthened our brand portfolio, adding Kimpton Hotels & Restaurants into the IHG family and accelerating signings across our mainstream and extended stay brands. Through effective online distribution management we grew our direct digital revenue more than any other channel, and building on our track record of innovation we are on course to begin the roll out of a next generation cloud-based guest reservation system in 2017.
"Looking into the medium term, despite economic and political uncertainty in some markets, the prospects for the hotel industry remain good and the strength of our business model gives us the confidence to propose a 10% increase in total dividend for the year."
IHG, which also operates the InterContinental, Crowne Plaza, Holiday Inn and Hotel Indigo brands, has a portfolio of 5,032 hotels, comprising more than 744,368 rooms in more than 100 countries.
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