Investors may be disappointed by lack of news on returns at IHG, Numis thinks

18th Feb 2014 11:49

InterContinentalHotels Group's preliminary full year operating results came in slightly ahead of forecasts, but adjusting for a fourth quarter liquidated damages receipt then the 'beat' was minimal, wrote analysts at broker Numis.Also, no new news was forthcoming regarding an additional return of cash to shareholders. "There may be some market disappointment that nothing new has been announced, but we see scope for a further significant return."Revenue per available room (RevPAR), one of the most important metrics for hotel operators, grew by 3.8% overall, but by only 1% in China - a geographical regions around which there remain "uncertainties". "As well, the company faces some short-term headwinds given dilution from asset disposals and planned refurbishment.We suspect that consensus forecasts may drift back a little," the broker added. As a result of all the above Numis downgraded the stock to 'hold' from 'add' setting a 2,100p target in the process. AB