2nd Aug 2016 09:53
LONDON (Alliance News) - InterContinental Hotels Group PLC on Tuesday reported a drop in profit in the first half of 2016 as revenue fell following the disposal of hotels last year, but IHG said it is confident in the outlook for the full year.
The hotel operator said its pretax profit in six months to June 30 fell to USD298 million from USD458 million in the first half of 2015, as revenue decreased to USD838 million from USD915 million.
IHG said the fall in revenue was primarily due to hotel disposals it made the prior year and would have grown by 4.8% on an underlying basis on the back of 2.0% growth in revenue per available room. The hotelier booked USD5 million in exceptional items, whereas the prior-year period benefited from a USD164 million gain.
IHG will pay an interim dividend of 30 cents, which is a 9% increase on the 27.5 cents paid the year before.
"The fundamentals for our industry, and particularly for IHG as one of the largest branded players, remain compelling. This backdrop, combined with our winning strategy and the strength of our business model, will enable us to deliver sustainable growth into the future. Despite the uncertain environment in some markets, we remain confident in the outlook for the remainder of the year," Chief Executive Richard Solomons said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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