InterContinental Hotels Group ( NYSE: IHG ) posted a mixed Q4 earnings report, but voiced confidence in 2023 and authorized a new buyback program.
The UK-based hotel group notched $2.82 in earnings per share, beating estimates by $0.02, while a 32.4% jump in revenue from the prior year quarter to $1.84B narrowly missed expectations.
“In 2022 we saw demand return strongly in most of our markets, pushing Group RevPAR back close to 2019 levels and fee margin ahead,” CEO Keith Barr commented. “It’s particularly pleasing that in the second half of the year we exceeded 2019 levels for both RevPAR and profitability. Looking to 2023, while there are economic uncertainties, we expect continued strong leisure demand in many markets, alongside further return of business and group travel and the ongoing reopening of China.”
Management expects leisure bookings to remain strong across markets in 2023, while business demand is expected to progress as well as groups and meetings rebound. The aforementioned recovery in China was cited as a particular tailwind as restrictions roll off.
“Reflecting the confidence we have in continued growth and the highly cash generative nature of our business, the Board is pleased to be recommending a 10% increase in the final dividend in respect of 2022 and to announce a further share buyback program to return an additional $750M to shareholders in 2023,” Barr concluded.
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InterContinental Hotels tops profit estimates, eyes China recovery