InterContinental Hotels Group plc (LON:IHG) has raised its dividend 11% after achieving an increase in full year underlying revenue and adjusted earnings.
The owner of Holiday Inn and Crowne Plaza lifted its Total dividend per share to 94c from 85c and proposed a $400mln special dividend.
Underlying adjusted earnings per share in the year to 31 December 2016 rose 23.1% to 203.1c from 165c the previous year, while revenues grew 4.6% to $1.58bn from $1.51bn.
Total underlying revenue was boosted a 1.8% increase in global revenue per available room and a 2.3% rise in fee revenue. The group fee margin edged up 3.3 percentage points to 48.8%.
On a reported basis, however, revenue declined 4.9% to $1.72bn from $1.80bn, reflecting the sale of InterContinental Paris - Le Grand in 2015 and a drop in revenues in the Asia, Middle East and Africa region.
Basic earnings per ordinary share also decreased 62.4% to 195.3c from 520c after paying a $1.5bn special dividend in May 2016. Year-end debt rose to $1.50bn from $977mln due to the special dividend, the company said.
“The fundamentals for the hospitality industry remain compelling,” said chief executive Richard Solomons.
“Despite the uncertain environment in some markets, we remain confident in the outlook for the year ahead, as well as our ability to deliver sustainable growth into the future."
Shares rose 0.11% to 3,882.14p in morning trade.