Intercontinental Hotels Group (Ticker: IHG) proposed a final dividend of 104.0¢ in respect of 2023, which is a growth of 10% from 2022. With the interim dividend of 48.3¢ paid in October 2023, the total dividend for the year would be 152.3¢, representing an increase of 10%. The ex-dividend date is Thursday 4 April 2024 and the record date is Friday 5 April 2024.
Other financial highlights include:
Trading and revenue
- Strong trading: global RevPAR up +16.1% YoY (Q4 +7.6%); global RevPAR up +10.9% vs 2019 (Q4 +12.7%)
- RevPAR is the primary metric management uses to track hotel performance across regions and brands. RevPAR is also a commonly used performance measure in the hotel industry.
- Americas FY RevPAR is up +7.0% YoY (Q4 +1.5%), EMEAA +23.7% (Q4 +7.0%), and Greater China +71.7% (Q4 +72.0%), reflecting the differing levels of travel restrictions that were still in place in 2022
- Average daily rate up +5% vs 2022, +13% vs 2019; occupancy up
- Total gross revenue of $31.6bn, +23% vs 2022, +13% vs 2019
System size and pipeline
- Gross system growth +5.3%; net system size growth of +3.8%
- Opened 47.9k rooms (275 hotels), +16% YoY (ex. Iberostar); global estate 946k rooms (6,363 hotels)
- Signed 79.2k rooms (556 hotels), +26% YoY (ex. Iberostar); global pipeline 297k rooms (2,016 hotels), +5.5% YoY
- Q4 opened 19.2k rooms (117 hotels) and signed 28.3k rooms (194 hotels), one of the highest quarters on record
Margin and profit
- Fee margin2 of 59.3%, up +3.4%pts driven by trading recovery in EMEAA and Greater China
- Operating profit from reportable segments2 of $1,019m, up +23%; this included $13m adverse currency impact
- Reported operating profit of $1,066m, including a profit of $19m from System Fund and reimbursables (2022: loss of $105m) and a $28m exceptional profit (2022: $95m net exceptional charges)
Cash flow and net debt
- Net cash from operating activities of $893m (2022: $646m), with adjusted free cash flow2 of $819m (2022: $565m), the latter representing 129% conversion of adjusted earnings2 (2022: 111%)
- Net debt increase of $421m reflects the strong adjusted free cash flow, $1.0bn of shareholder returns and a $105m net foreign exchange adverse impact
- Adjusted EBITDA2 of $1,086m, +21% vs 2022; net debt: adjusted EBITDA ratio of 2.1x
Shareholder returns
- Completion of 2023's $750m share buyback programme, and payment of $245m in ordinary dividends
- Final dividend of 104.0¢ proposed, +10% vs 2022, resulting in a total dividend for the year of 152.3¢
- New $800m buyback programme launched, which together with ordinary dividends is expected to return over $1bn to shareholders in 2024
