Shares in InterContinental Hotels Group (LON:IHG) have fallen into the red in today’s session, even as the company revealed a rise in revenue and profits in the first half of the year. The Holiday Inn and Crowne Plaza owner further hiked its payout to shareholders.
As of 12:37 BST, InterContinental’s share price had given up 2.86 percent to 4,613.00p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.94 percent higher at 7,736.30 points. The group’s shares have added about 4.7 percent to their value over the past year, as compared with about a 2.8-percent gain in the Footsie.
InterContinental posts results
InterContinental said in a statement today that its underlying revenue from reportable segments had climbed four percent to $875 million in the first half of the year, the group’s operating profit had come in eight percent higher at $398 million. The Holiday Inn and Crowne Plaza owner hiked its interim dividend per share by 10 percent.
“We’ve had a strong first half, delivering our best signings performance for a decade,” InterContinental’s chief executive Keith Barr commented in the statement, adding that this underpinned the company’s decision to hike its payout to shareholders.
Analysts caution about US growth
Reuters reports that analysts have cautioned about the group’s growth in the US, its largest market in terms of room numbers. InterContinental’s quarterly revenue per available room in Americas rose 3.4 percent, while growth in the US stood at 2.7 percent. The FTSE 100 group noted that US hotel demand drivers remain strong, which will support continued underlying RevPAR momentum in the second half. InterContinental, however, also cautioned that reported figures will be impacted by unfavourable calendar shifts and strong comparables driven by hurricane-related demand.