Intercontinental Hotels Group PLC (LSE:IHG) reported profits in line with analyst estimates, albeit at the lower end of expectations, as the hospitality group recovered from the worst of the coronavirus (COVID-19) restrictions.
The owner of the Crowne Plaza and Holiday Inn hotel chains also said it will pay a dividend for the first time since 2019.
Group operating profit for the full year 2021 was US$494mln, compared with a US$153mln loss in 2020, and in line with analysts’ expectations of between US$475mln and US$529mln.
Revenue climbed 21% to US$2.91bn and revenue per available room ( RevPAR), a more telling metric, was 70% of 2019 levels.
“As vaccination rates rise and restrictions are lifted around the world, we are seeing the demand for travel increase,” said Keith Barr, chief executive officer of IHG.
“While there may be unexpected challenges ahead, we are confident in our ability to respond and adapt to what consumers and owners need as we position IHG for strong future growth.”
RevPar continues to lag pre-pandemic rates, with the EMEAA region’s figure less than half that in 2019, though fourth quarter data for 2021 suggests revenue per room is on an upward swing.
Diluted earnings per share (EPS) were US$144.6 against losses per share of US$142.9 in 2020.
The IHG board proposed a dividend of US$0.859 per share, marking a return to the payouts for the first time since 2019.
The resumption of a payout follows the company paying down debt taken on to soften the blow of COVID-19. Net debt fell 26% to US$1.88bn.
Shares were down 1.15% at 4,832p in opening deals.