Quantcast
Rooms Hotels

InterContinental Hotels Announces Strong First Quarter and $750 Million Dividend

Skift Take

IHG is aggressively pursuing an asset-light strategy and it appears to be working well for the brand in the short term.

— Jason Clampet

InterContinental Hotels Group Plc gained the most in five years after first quarter revenue beat expectations the company said it will pay a special dividend of $750 million in July.

The world’s largest provider of hotel accommodation rose as much as 9.5 percent to 2,214 pence in London trading, the biggest gain since May 2009. It’s also the highest price since InterContinental first sold shares to the public in 2003.

Intercontinental, the owner of the Holiday Inn and Crowne Plaza brands, said today it will pay the dividend after selling the Mark Hopkins San Francisco and an 80 percent stake in the New York Barclay for about $394 million in March. Revenue per available room, a measure of occupancy and rates known as revpar, increased by 6 percent from a year earlier, the Denham, England-based company said in a statement today. That compares with a 4.8 percent average gain in a survey of nine analysts.

InterContinental has been divesting properties over the past 10 years as it focuses on operating hotels rather than owning them. The company said it has distributed $10.3 billion to shareholders since 2003.

“Current trading trends give us confidence for the rest of the year and our strategy for high quality growth positions us well for continuing outperformance, in an industry with compelling long term growth prospects,” Chief Executive Officer Richard Solomons said in the statement.

To contact the reporter on this story: Dalia Fahmy in Berlin at dfahmy1@bloomberg.net. To contact the editors responsible for this story: Andrew Blackman at ablackman@bloomberg.net.

More Stories Below ▼
Priceline Acquires Australian Restaurant Reservations Platform AS Digital
Free Report: What Millennials Want in Meetings
Airbnb Says It Hosted a Record 17 Million Guests This Summer
A Marketer’s Cheat Sheet to Creating Engaging Content for Travelers

A Marketer’s Cheat Sheet to Creating Engaging Content for Travelers

Daily Travel Startup Watch: The Hotels Network, TravelTag and More
The Vacation Rental Technology Ecosystem
Trend Report

The Vacation Rental Technology Ecosystem