IHG Reports Strong Financial Performance for 2023, Plans $1 Billion Shareholder Return

InterContinental Hotels Group (IHG) has announced robust full-year financial results for 2023, surpassing pre-pandemic levels and leading to a planned $1 billion return to shareholders in 2024. The hotel giant’s record growth and popularity across its brands have been key drivers of this success.

In 2023, IHG saw significant year-over-year growth in various financial metrics. Revenue increased by 17 percent to $2.16 billion, revenue from fee business rose by 17 percent to $1.67 billion, and operating profit surged by 23 percent to $1.02 billion.

One of the key metrics for the hotel industry, revenue per available room (RevPAR), showed strong growth for IHG. Global RevPAR rose by over 16 percent from 2022 and nearly 11 percent from 2019. Notably, China experienced the highest regional growth in RevPAR, with a remarkable 71.7 percent increase, primarily due to travel restrictions in 2022.

The average daily rate also saw a notable increase, rising by 5 percent from 2022 and 13 percent from 2019. Despite a 1 percent decrease compared to 2019, occupancy increased by 6 percent from 2022. This trend highlights how higher pricing and sustained demand have contributed to the hotel giant’s record revenue.

Elie Maalouf, Chief Executive Officer of IHG Hotels & Resorts, highlighted the company’s strong trading and financial performances. He stated, “Alongside strong trading and financial performances, we continued to grow our portfolio and the global footprint of our brands,” noting the opening of 275 hotels in 2023 and the signing of 556 hotels into their pipeline.

“Adjusting for the effect of the Iberostar hotels joining IHG’s system, openings for the fourth quarter grew by 27% year-on-year and signings were up by 50%, representing one of our biggest ever quarters for development activity,” Maalouf added.