The Intercontinental Hotels Group Board is proposing a final dividend of 94.5¢ in respect of 2022, which is growth of +10% on 2021. An interim dividend of 43.9¢ was resumed and paid in October 2022. The total dividend for the year would therefore be 138.4¢, representing an increase of +61% on 2021 as no interim dividend was paid in the prior year. The ex-dividend date is Thursday 30 March 2023 and the Record date is Friday 31 March. Subject to shareholder approval at the AGM on Friday 5 May, the dividend will be paid on Tuesday 16 May.
Other financial highlights include:
●Further significant improvement in trading: sequential improvement each quarter in global RevPAR vs 2019
●Strongest recovery in Americas, with RevPAR +3.3% vs 2019 (Q4 +9.0%); EMEAA improving to (7.5)% (Q4 +8.8%); Greater China (38)% (Q4 (42)%) due to the scale of travel restrictions that were still in place
●Average daily rate +18% vs 2021, +8% vs 2019; occupancy +9%pts vs 2021, (7)%pts vs 2019
●Iberostar Beachfront Resorts agreement signed in November 2022, with first 12.4k rooms added to IHG's system in December 2022; continue to explore further opportunities with Exclusive Partners to drive additional system growth
●Gross system growth +5.6% YOY; adjusted net system size growth of +4.3% YOY
●Opened and added 49.4k rooms (269 hotels); global estate now at 912k rooms (6,164 hotels)
●Signed 80.3k rooms (467 hotels); global pipeline now at 281k rooms (1,859 hotels), +3.9% YOY
●Fee margin of 56.2%, +6.6%pts vs 2021 (+2.1%pts vs 2019's 54.1%)
●Operating profit from reportable segments of $828m, +55% vs 2021; this was held back by $17m adverse currency impact and included $5m of costs related to Iberostar agreement
●Reported operating profit of $628m, after $105m System Fund reported loss and $95m net exceptional charges
●Net cash from operating activities of $646m (2021: $636m), with adjusted free cash flow1 of $565m (2021: $571m); net debt movement includes $482m share buybacks, $233m dividends and a $230m net foreign exchange benefit
●Adjusted EBITDA of $896m, +42% vs 2021; net debt:adjusted EBITDA ratio reduced to 2.1x
●Share buyback programme to return an additional $750m of surplus capital in 2023
