Holiday Inn owner IHG buoyed by returning travel after Covid impact

Keith Barr, chief executive officer of IHG, said that the group “saw demand return strongly in most of our markets”.

The London-listed group revealed on Tuesday that overall revenues grew by 34 per cent to 3.89 billion US dollars (£3.24bn) in 2022, compared with the previous year. As a result, operating profits increased by 27 per cent year-on-year to 628m dollars (£523m).

IHG, which runs 6,164 hotels, was lifted by returning demand in Europe, the Middle East and Africa, where sales jumped by 82.2 per cent.

It also saw almost 30 per cent growth in the Americas, helping to offset a 25 per cent slump in Greater China, where restrictions remained in place.

The firm was also boosted by its continued expansion over the year, which included the opening of 269 more hotels.

Mr Barr said: “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.

“Our strategy over the last five years has significantly strengthened our brand portfolio and seen substantial investment to innovate our technology and distribution platforms.

“We are a stronger and more resilient company than ever before, and we are proud of the advancements made in each of our strategic priorities.”

On Tuesday, IHG also announced a new 750m dollar (£624.5m) share buyback and increased its total annual dividend for shareholders by more than 60 per cent.

Shares in the company moved 1.8 per cent lower on Tuesday morning.

Susannah Streeter, head of money and markets, at Hargreaves Lansdown, said: “The pent-up demand for travel isn’t just fuelling a rocket recovery for budget airlines, but InterContinental Hotel Group is also benefiting from the resurgent popularity of holidays and mini breaks. This helped IHG exceed 2019 levels in terms of profitability and revenue per available room in the second half of 2022, with growth in the American market powering ahead, up 3.3 per cent compared to pre-pandemic levels.”