InterContinental Hotels Annual Pre-tax Profit Flat, Ups Dividend

(RTTNews) - InterContinental Hotels Group Plc. (IHG, IHG.L) Tuesday said full-year pre-tax profit was unchanged from last year, despite a slide in revenues. Further, the company proposed a 10 percent increase in total dividend for the year.

Profit before tax stood at $600 million. Adjusted profit before tax totaled $571 million, while it was $595 million last year.

Owner of the Holiday Inn, Crowne Plaza and InterContinental brands said earnings per ordinary share increased to 156.4 cents from 139.3 cents.

Revenue slid 2 percent to $1.86 billion from $1.9 billion, while it increased 6 percent on an underlying basis.

Group comparable Revenue Per Available Room or RevPAR advanced 6.1 percent, amid a 2.7 percent growth in rate.

In the Americas, the company's largest region, revenue decreased 5 percent to $871 million, due to the sale of owned assets. Comparable RevPAR increased 7.4 percent, driven by rate growth of 3.7 percent.

Revenue decreased 7 percent in Europe to $374 million due to the disposal of owned assets.

In Asia, Middle East & Africa or AMEA, revenue increased 5 percent, and comparable RevPAR climbed 3.8 percent driven by 2.4 percent rate growth.

In Greater China, revenue improved 3 percent and comparable RevPAR increased 1.6 percent, led by an improvement in occupancy.

In addition, the board proposed a final dividend per ordinary share of 52 cents. With the interim dividend per ordinary share of 25 cents, the full-year dividend per ordinary share for 2014 would total 77 cents, up 10 percent over 2013.

Richard Solomons, CEO, said, "Looking into 2015, we face many macroeconomic and geopolitical uncertainties, but are confident that our strategy for high quality growth coupled with the momentum in the business positions us well for continued strong performance."

Separately, the company said Anne Busquet is to be appointed as an independent Non-Executive Director of IHG. She will join the IHG Board with effect from March 1. She will also serve on the Nomination, Audit and Corporate Responsibility Committees of the IHG Board. Anne Busquet is the President of independent consulting firm AMB Advisors, where she advises companies on strategy, marketing and operations. She is also Managing Director at Golden Seeds LLC, an angel investment company focused on funding high-potential, female-led businesses.

The stock fell 1.8 percent in early trade to 2,542.00 pence.