InterContinental Hotels has 'excellent' year

15th Feb 2011 07:06

InterContinental Hotels Group (IHG) grew profit by 24% in 2010, but the Holiday Inns operator predicts a $3m hit this year from the recent unrest in Egypt.Pre-tax profit before exceptional items jumped to $382m from $309m in 2009 on revenue up 6% at $1.63bn. Asia Pacific ramped up revenue by 24% to $303m.Revenue per available room (RevPAR) grew 6.2% during the 12 months, but was up 8% in the fourth quarter and 8.4% in January, led by 10.9% growth in the Asia Pacific region.In the Americas, RevPAR was up 4.9% for the year and up 4.3% in the US, though the fourth quarter showed gains of 7.7% and 7.5% respectively. Operating profit for the region rose 28% to $369m.Asia Pacific RevPAR leapt 12.4% in 2010 and 11.5% in the last three months as Greater China soared 26%, aiding a 71% increase in operating profit for the region to $89m.In Europe, the Middle East and Africa (EMEA), RevPAR grew 6.1% and by 6.5% at the end of 2010, led by Germany, up 18.4% for the year. Operating profit fell 2% to $125m. "2010 was an excellent year for IHG. After a slow start to the year, the industry staged the sharpest recovery in its history, exceeding all expectations," chief executive Andrew Cosslett said."Our priority is to increase market share and improve margins in an industry set for strong growth over the next few years."The final dividend goes up 21% to 35.2¢ (22p) a share, taking the full year payout to 48.0¢ (30p), up 16%.