17th Feb 2015 07:20
LONDON (Alliance News) - InterContinental Hotels Group PLC Tuesday posted flat pretax profit for 2014, but said revenue per available room growth was being driven by strong demand in the US.
The hotels group, which owns brands including Holiday Inn, Crowne Plaza and InterContinental Hotels, reported an operating profit before exceptional items of USD651 million for 2014, down 3% on 2013's USD668 million profit, as revenue dipped 2% to USD1.86 billion, from USD1.90 billion.
IHG said including exceptional items, its operating profit was up on last year, at USD680 million from USD673 million, resulting in a flat pretax profit for the year of USD600 million.
The group declared a 10% increase in its total dividend per share for the year to 77.0 cents. Basic earnings per share increased by 12% to 158.3 cents, whilst adjusted earnings per share remained flat, also at 158.3 cents.
"We remain committed to reducing the capital intensity of the business and maintaining an efficient balance sheet with disposal proceeds received in the year of almost USD400 million and shareholder returns, including ordinary dividends, of over USD1 billion," said Chief Executive Richard Solomons in a statement.
Comparable group revenue per available room rose 6.1% during the year, including an increase in average daily rate of 2.7%. IHG said that growth was driven by the Americas, where RevPAR grew by 7.4%.
"Looking into 2015, we face many macroeconomic and geopolitical uncertainties, but are confident that our strategy for high quality growth coupled with the momentum in the business positions us well for continued strong performance," said Solomon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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