22nd Feb 2022 10:27
(Alliance News) - InterContinental Hotels Group PLC on Tuesday posted a swing to full-year profit thanks to "significantly" improved trading conditions in 2021, leading the company to reinstate shareholder payouts.
For 2021, IHG swung to a pretax profit of USD361 million from a loss of USD280 million in 2020 on total revenue that was up 21% to USD2.91 billion from USD2.39 billion.
Global full-year RevPAR - revenue per available room, a key metric in the hotel industry - was down 30% compared to 2019 levels, but up 43% compared to 2020.
The Denham, Buckinghamshire-based hotel operator credited this to "significantly" improved trading through the year.
It stated that more travel demand returned as vaccines rolled out, government-mandated restrictions eased and economic activity started to rebuild.
"Through the summer months many markets, including the US and UK, saw significant improvements, driven by domestic leisure travel. Whilst the ability of travellers to freely move between and within countries continued to vary significantly, the second half of the year saw a gradual further improvement in overall trading conditions," the company said.
IHG declared a total dividend of 85.9 US cents for 2021, having paid out nothing the year before.
"With the strong financial improvements delivered in 2021, including more than doubling our operating profit from reportable segments and substantially reducing our net debt, the board is pleased to be recommending the reinstatement of a dividend," said Chief Executive Officer Keith Barr.
Looking ahead, IHG expects to be able to gain further market share.
This will be driven by the expansion of its estate, leveraging its scale efficiencies and investing in its brands, technology and loyalty programmes, IHG said.
Barr added: "The signs are encouraging that we are nearing the end of the pandemic, and we are confident in the strength of IHG's enterprise, market positioning and ability to drive attractive levels of long-term, sustainable growth."
Shares in IHG were up 2.6% at 5,016.00 pence each on Tuesday morning in London.
By Abby Amoakuh; [email protected]
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