InterContinental Hotels unveils special 750m dollar dividend

2nd May 2014 07:43

A special dividend and a strong first quarter performance were plated up for Intercontinental Hotel shareholders on Friday, after the group delivered its best RevPAR performance in seven quarters. The special dividend payment, totalling $750m, is due to be paid in July, the Holiday Inn owner said. "This reflects our clear capital allocation strategy whereby we are committed to returning surplus funds to shareholders, whilst maintaining an efficient balance sheet and continuing to invest behind growth," the FTSE 100-listed group commented.During the three-month period, RevPAR, an industry-wide measure which stands for revenue per available room, climbed 6%, up 6.6% in the Americas, 6.1% in Europe, 3.8% in Asia, Middle East & Africa, and 3.9% in Greater China. The gains were driving by a 2.4 percentage point rise in occupancy levels and a 1.9% rise in the average daily rate.During the first quarter, the group opened 9,000 rooms, and signed another 13,000. Richard Solomons, the group's Chief Executive, said: "We have made an excellent start to the year with our strongest RevPAR performance in seven quarters and our best first quarter for pipeline signings in six years. This reflects the continued growth momentum in the business and the strong preference for our portfolio of brands from both owners and guests."He added: "In line with our strategy to continue to reduce the capital intensity of the business, and given the strength of the global demand for prime hotel assets, we are now reviewing our opportunities for further asset disposals.Current trading trends give us confidence for the rest of the year and our strategy for high quality growth positions us well for continuing outperformance in an industry with compelling long term growth prospects."NR