Intercontinental Hotels Group (LON:IHG) has declared an interim dividend of 36.3 per ADR which will be released on October 5th to shareholders registered by the close of business on 31st August 2018. The declaration represents a 10% hike in the interim dividend to 36.3 US cents.
The company, which operates 4150 hotels globally, comprising of seven well known hotel brands including Holiday Inn and Crowne Plaza, announced its interim results on August 7th, showing revenue to have risen by 7.6%. The six months up to the end of June saw revenue up year on year from USD1.96billion in 2017 to USD2.11 billion for the same period this year. Pre-tax profit however dropped by around 15 per cent, down from USD357 million to USD303 million year on year.
Pre-tax profits impacted by restructuring costs
At the time, IHG accorded the drop in pre-tax profits to restructuring programme costs, but were overall optimistic about its benefits in the long term with CEO Keith Barr commenting: “ This (momentum) is led by Greater China, where double digit growth in both RevPAR and net system size, as well as record signings, reflects the ongoing benefits of our long term strategic focus on this important market.” As quoted by Morning Star.
Efficiency programme on track
IHG introduced an efficiency programme back in February and as a result believes it is on track to deliver savings of USD125 million by 2020 in order to capitalise on recent acquisitions and is confident in its outlook for the rest of 2018 according to Alliance News.
As of BST 12:58, IHG shares were down 29.00 pence to 4801.00, a fall of -0.6 percent, which is very much in line with the FTSE index which is currently trading at 7516.30, down 46.91 (-0.62%).