InterContinental share price dips amid flat US growth
InterContinental Hotels Group’s (LON:IHG) share price has fallen into the red in London trading this Tuesday as the Holiday Inn and Crowne Plaza owner reported flat growth in the US. The company meanwhile posted a small rise in profit and hiked its payout to shareholders.
As of 09:59 BST, InterContinental’s share price had given up 2.17 percent to 5,174.00p. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.11 percent lower at 7,215.88 points, further pressured by a fall in Rolls-Royce Holdings (LON:RR) which also reported results today. Shares I the Holiday Inn owner have lost just under nine percent of their value over the past year, as compared with about a 6.3-percent fall in the Footsie.
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IHG posts half-year results
InterContinental announced in a statement this morning that first-half comparable revenue per available room (RevPAR) in the Americas had grown 0.1 percent, with the US remaining flat. The company pointed to tough comparables from hurricane related demand in the prior-year period. Underlying operating profit meanwhile rose two percent, and the company lifted its dividend by 10 percent.
“In a slower RevPAR growth environment, we’ve made significant progress, opening a record number of rooms in the first half which have delivered a 5.7-percent increase in net system size growth, our best performance in over a decade, with future growth underpinned by our highest level of signings over the same period,” the company’s chief executive Keith Barr commented in the statement, adding that InterContinental was confident ‘in the outlook for the balance of the year’.
Analyst ratings update
Last month, Royal Bank of Canada trimmed its stance on the Holiday Inn owner from ‘sector perform’ to ‘underperform,’ without specifying a valuation on the shares. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating, while the average target on the InterContinental share price currently stands at 5,006.25p.