Intercontinental Hotels Group PLC (LSE:IHG) (IHG), which operates 4,150 hotels across nearly 100 countries through seven hotel brands, saw its revenues per available room (RevPAR) increase by 28% year on year in the third quarter.
RevPAR - the standard performance metric in the hospitality sector - was also up by 2.7% from pre-coronavirus pandemic levels, the Holiday Inn operator said.
The company’s US$500mln share buyback scheme announced in August is now 59% complete with $297.0m (2021: £260.6m) having been cumulatively spent to date.
While IHG has bounced back considerably from the pandemic, the FTSE 100-listed company has a debt position of £2.1bn, with six bond issues outstanding. A £173mln bond falls due in November this year, which the company said it will pay from its £500mln cash reserves.
“We remain focused on our strategy to develop IHG’s portfolio of brands, invest in leading technology and transform our loyalty programme,” said chief executive officer Keith Barr in the third quarter trading update.
“We have also proven the resiliency of our business model and the ability for IHG to respond and adapt to opportunities and to macroeconomic uncertainties. These reinforce the confidence we have in our ability to drive attractive levels of long-term, sustainable growth," he added.
In a separate statement, IHG announced that Paul Edgecliffe-Johnson will step down from its board and his role as chief financial officer (CFO) and Group Head of Strategy to take up a new position outside of IHG.
Edgecliffe-Johnson, who is to join Flutter PLC as its CFO, will leave IHG in six months' time and the company said it has begun the process of appointing a successor.
Barr commented: "Paul has played a major role in helping IHG achieve its growth ambitions through expanding our brand portfolio, investing in our enterprise platform and building a strong finance team. Although we are sad to see Paul go, we wish him all the very best for the future."
-- Adds news on CFO departure --