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IHG Hotels and Resorts has announced a $500m (£412.6m) share buyback after the group reported that its revenue has more than doubled, rising by 52% in its results for the half-year to 30 June 2022.
Over the period, the group saw further significant improvement in trading in the Americas during Q2 RevPAR compared to 2019 (+3.5%), as well as strong sequential improvement in EMEA to 10.3%.
While the group’s operating profit is still 8% down from 2019 levels, its reportable segments of $377m (£311.1m) marked an increase of 101% compared to 2021.
In addition, IHG’s trailing 12-month adjusted EBITDA of $812m (£670.1m) saw an increase of 78% compared to a year earlier. The group also reinstated its interim dividend at 43.9 cents (36.23p), a level 10% higher than when it was last paid in 2019.
The share buyback programme comes as the global hotel group now reportedly has a luxury and lifestyle portfolio of 445 hotels and a further 287 hotels, which represent 19% of the group’s pipeline.
Keith Barr, CEO of IHG Hotels and Resorts, said: “We saw continued strong trading in the first half of 2022 with increased demand for travel in most of our markets. Alongside leisure stays, our hotels are seeing increased pricing power due to the strength of IHG’s brands, loyalty programme and technology platform.
“Our overall performance reflects a continued focus to build a stronger business for our guests and owners. We have significantly enhanced and expanded our brand portfolio in recent years, and invested in our enterprise platform to drive performance and accelerate our growth. The investments we have made to innovate our technology and distribution channels continue to drive improvements in both the guest experience and owner returns.”
He added: “Whilst the economic outlook faces uncertainties as central banks and governments take action to manage inflation, we remain confident in our business model and the attractive industry fundamentals that will drive long-term sustainable growth.”
