InterContinental Hotels FY13 Profit Rises

(RTTNews) - InterContinental Hotels Group Plc (IHG, IHG.L) Tuesday reported a higher pre-tax profit for 2013, as revenue per available room rose with increase in occupancy and rates.

"Looking into 2014, although economic conditions in some markets remain uncertain, forward bookings data is encouraging and we are confident that we will deliver another year of growth," said Richard Solomons, chief executive.

For the year, revenue per available room or RevPAR, a performance metric in the hotel industry, increased 3.8 percent, with 1.8 percent rise in rate, and 1.3 percentage points growth in occupancy.

In the Americas, the company saw good performance driven by solid RevPAR growth. Comparable RevPAR grew 4.3 percent, with 2.6 percent rate growth. Occupancy was up 1.1 points.

In Europe, comparable RevPAR improved 1.7 percent driven by 1.5 percentage point increase in occupancy. AMEA showed comparable RevPAR increase of 6.1 percent, while in Greater China, comparable RevPAR edged up 1 percent.

For full-year 2013, the company posted profit before tax of $600 million, higher than $547 million pounds last year. Excluding exceptional items, pre-tax profit amounted to $595 million during the latest year.

Meanwhile, profit attributable to equity holders of the parent declined to $372 million or 139.3 cents per share from $537 million or 183.9 cents per share reported in 2012.

On an adjusted basis, earnings per share were 156.6 cents, while the firm posted 136.6 cents in the prior year. The company said it has restated its prior-year results.

Annuals revenues grew 4 percent to $1.90 billion from $1.84 billion a year ago.

In a separate press release, InterContinental Hotels announced sale of the 383 room InterContinental San Francisco Mark Hopkins to a joint venture between affiliates of Woodridge Capital Partners and funds managed by Oaktree Capital Management L.P. for $120 million gross cash proceeds.

Further, IHG said that David Kappler would retire from the board and his role as an independent non-executive director of IHG on May 31, 2014. David was appointed to IHG's Board on June 21, 2004.

Kappler would resign as Chairman of the Audit Committee with effect from April 1, 2014 and would be succeeded by Ian Dyson, a Director of IHG and a member of IHG's Audit, Remuneration and Nomination Committees. The board has also proposed a final dividend of 47 cents per share. This will bring the full-year dividend of 70.0 cents per share, an increase of 9 percent over 2012.

IHG.L is currently trading at 1,966 pence, down 81 pence or 3.96 percent, on a volume of 520,300 shares.