IHG Reports 9.5% Increase In 2016 Underlying Profit; To Increase Dividend

(RTTNews) - Intercontinental Hotels Group plc (IHG.L, IHG) reported profit before tax of $591 million for the year to 31 December 2016 compared to $1.41 billion, prior year. Profit to equity holders of the parent was $414 million or 193.5 cents compared to $1.22 billion or 513.4 cents, last year. Underlying Group operating profit increased by 9.5% to $702 million. Adjusted earnings per share was 201.4 cents compared to 172.7 cents, prior year, reflecting the increase in operating profit before exceptional items and the impact of the share consolidation in May 2016.

Fiscal year revenue was down 4.9% year-over-year to $1.71 billion from $1.80 billion. The Group said revenue decreased primarily as a result of the sale of InterContinental Paris - Le Grand and InterContinental Hong Kong. Underlying Group revenue increased by 4.6%. Comparable Group RevPAR increased by 1.8% (including an increase in average daily rate of 1.2%).

The Board of IHG has proposed a final dividend per ordinary share of 64.0 cents. With the interim dividend per ordinary share of 30.0 cents, the full-year dividend per ordinary share for 2016 will total 94.0 cents, an increase of 11% over 2015. In February 2017, the Board proposed a $400 million return of funds to shareholders by way of a special dividend and share consolidation.