Register to get 3 free articles
Register to unlock the article and receive our free newsletter. Join 26,000 other hotel leaders and stay in the know.
Want unlimited access? View Plans
Already have an account? Sign in
IHG has seen business rebound to pre-pandemic levels in FY22, as total revenues rose by 34% to $3.89bn (£3.24bn), while operating profit rose by 27% to $628m (£519m).
The hotel group said trading improved in each quarter of 2022, with group comparable RevPAR exceeding pre-pandemic levels in the third and fourth quarters amid the continued lifting of travel restrictions.
Overall, group comparable RevPAR improved year-on-year by 60.8% in the first quarter, then grew 43.9% in the second quarter, 27.8% in the third quarter, 25.6% in the fourth quarter and 36.6% in the full-year.
Over the year, the group signed 467 hotels and opened 269, which led to net system growth of over 4%. The further 1,800 hotels in its pipeline represents future growth of over 30% of today’s system size. It now has a global estate of 912k rooms across 6,164 hotels.
Meanwhile, a recent agreement with Iberostar added an 18th brand to the group and “substantially” increased its resort and all-inclusive presence. The Iberostar agreement was signed last November, with the first 12.4k rooms added to IHG’s system in December 2022.
The group said its strategy over the last five years has “significantly strengthened” its brand portfolio and seen “substantial investment” to innovate its technology and distribution platforms.
CEO Keith Barr: “In 2022 we saw demand return strongly in most of our markets, pushing Group RevPAR back close to 2019 levels and fee margin ahead. 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.”
He added: “IHG’s overarching ambition is to deliver industry-leading growth in our scale, enterprise platform and performance, doing so sustainably for all stakeholders including our hotel owners, guests and society as a whole. 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.
“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 programme to return an additional $750m (£619m) to shareholders in 2023.”
