IHG beats forecasts for 2014 after strong US RevPAR performance

17th Feb 2015 07:03

Intercontinental Hotels Group (IHG) managed to narrowly beat analysts' forecasts with a smaller-than-expected decline in annual profits, as it predicted a "continued strong performance" in 2015.The Crowne Plaza and Holiday Inn operator said reported operating profit for 2014 totalled $651m, down 3% on the $668m reported the year before but slightly ahead of the consensus estimate of $646m.On an underlying basis, which measures the company's performance at constant exchange rates, operating profit improved 10% to $648m.The company's lifted its total dividend to 77 cents, up 10% on 2013.Underlying revenues also rose 6% to $1.67bn, helped by revenue per available room (RevPAR) growth of 6.1% and its best net system size growth since 2009 of 3.4%.The company's RevPAR performance was driven by a strong showing (+7.4%) in its Americas division, which accounts for around two-thirds of operating profits.Meanwhile, the number of rooms in IHG's hotels totalled 710,295 by the end of the year - a net addition of 23,422 rooms."2014 was an excellent year for IHG as we delivered against our long-term winning strategy for high quality growth," said chief executive Richard Solomons."Looking into 2015, we face many macroeconomic and geopolitical uncertainties, but are confident that our strategy for high quality growth coupled with the momentum in the business positions us well for continued strong performance."