The Intercontinental Hotels Group (LON: IHG) share price rose 2.90% after releasing the final results of its 2023 financial year, which ended on 31 December 2023. The company reported that year-over-year (YoY) global revenue per available room (RevPAR) increased by 16.1%, with a 7.6% rise in the fourth quarter.
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The hotel group’s global RevPAR saw an uplift of 10.9% compared to 2019, with a 12.7% increase in Q4. RevPAR growth varied by region: the Americas saw a 7.0% rise YoY (Q4: +1.5%), EMEAA grew by 23.7% (Q4: +7.0%), and Greater China experienced a surge of 71.7% (Q4: +72.0%), reflecting the varying degrees of travel restrictions still in effect in 2022.
The average daily rate improved by 5% from 2022 and 13% from 2019; occupancy rates increased by 6 percentage points from 2022, just 1 percentage point below 2019 levels. Overall gross revenue reached $31.6 billion, marking a 23% increase from 2022 and a 13% rise from 2019.
The system saw a gross growth of 5.3%; net system size expanded by 3.8%. The year saw the opening of 47.9k rooms (275 hotels), a 16% increase YoY, excluding Iberostar, with a total global estate of 946k rooms (6,363 hotels).
New agreements were signed for 79.2k rooms (556 hotels), marking a 26% increase YoY, excluding Iberostar; the global pipeline grew to 297k rooms (2,016 hotels), up 5.5% YoY. The fourth quarter was notable, with 19.2k rooms (117 hotels) opened and 28.3k rooms (194 hotels) signed, marking one of the highest quarters on record.
Fee margin reached 59.3%, increasing by 3.4 percentage points, driven by the trading recovery in EMEAA and Greater China. Operating profit from reportable segments was $1,019 million, up 23%, including a $13 million negative impact from currency fluctuations.
The reported operating profit stood at $1,066 million, which included a $19 million profit from System Fund and reimbursable (a shift from a $105 million loss in 2022) and a $28 million exceptional profit (compared to $95 million in net exceptional charges in 2022).
Intercontinental Hotels (IHG) share price.
The Intercontinental Hotels Group (IHG) share price rose 2.90% to trade at 8132.0p from Monday’s closing price of 7903.0p.
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