Holiday Inn owner Intercontinental Hotels Group PLC (LSE:IHG) expects margins to improve in 2024 through a mix of cost-cutting and revenue growth, according to its new boss Elie Maalouf.
Maalouf joined IHG in mid-2023, but Monday’s full-year update was one of his first chances to leave his mark on the company.
“The travel industry has attractive, long-term drivers of demand, and the strength of our brand portfolio and enterprise platform will continue to boost our RevPAR and system size growth," he said.
“Combined with our scale and cost base efficiencies, this will further expand fee margin.”
The hotel group reported total revenues of US$4.6 billion and an operating profit of US$1.06 billion in 2023, representing earnings per share of 443.8 cents.
Strong trading, particularly in the Americas, Europe, Middle East, Africa and Greater China regions, boosted revenues as travel and hospitality recovered post-pandemic.
IHG's network increased by 3.8%, with 47,900 rooms opening over the year.
A final dividend of 104.0 cents for the year was also announced, a 10% increase from the previous year, with a new $800 million share buyback programme having also been launched.
Maalouf added that the company would use its strong cash generation for more dividend hikes and buybacks going forward.
“We look forward to an important next chapter of growth for IHG that creates long-term sustainable value for our shareholders and benefits our employees, hotel owners and communities," he concluded.