IHG Soars to New Heights with Record Results and Expansion in 2023

February 28, 2024

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In a year that can only be described as transformative, Intercontinental Hotels & Resorts (IHG) has shattered expectations, revealing its full-year results for December 31, 2023. The figures speak volumes, with a global RevPAR (Revenue Per Available Room) increase of 16.1% year-over-year and a remarkable 10.9% rise compared to the pre-pandemic peak 2019. Such performance is not just a rebound; it’s a resounding declaration of IHG’s market dominance and strategic prowess.

Elie Maalouf, the newly appointed CEO of IHG, expressed his pride and gratitude towards the team’s efforts that led to this historic success. Under his leadership, IHG navigated the complexities of a post-pandemic world and seized opportunities for growth, innovation, and shareholder value creation. Maalouf’s vision for IHG is clear: to leverage the brand’s global presence and efficient operating model to drive sustainable, long-term growth.

The financial milestones achieved in 2023 are nothing short of spectacular. IHG reported a total gross revenue of $31.6 billion, marking a 23% increase from the previous year and a 13% rise from 2019. This financial success is attributed to solid trading across all markets, with significant contributions from the Americas, EMEAA (Europe, Middle East, Africa, Asia), and Greater China. Greater China led the charge with an astounding 71.7% increase in RevPAR, underscoring the region’s rapid recovery and burgeoning travel demand.

IHG’s strategic expansion efforts have been equally impressive, adding 275 hotels to its global portfolio, resulting in a net system size growth of 3.8%. This expansion is not just about numbers; it’s a testament to IHG’s brand strength and appeal to guests and hotel owners. Signing 556 new hotels into the pipeline highlights IHG’s ambitious growth trajectory and commitment to maintaining a leading position in the global hospitality industry.

The company’s robust financial performance has also enabled it to reward its shareholders generously. Completing a $750 million share buyback program and announcing a $245 million dividend payout are clear indicators of IHG’s strong cash generation capabilities and commitment to returning value to shareholders. Moreover, the launch of a new $800 million buyback program for 2024 promises even greater returns, reinforcing IHG’s confidence in its future growth prospects.

Looking ahead, IHG is poised for continued success with a strategic focus on high single-digit percentage growth in fee revenue, system size expansion, and fee margin improvement. Maalouf’s leadership and the company’s clear strategic priorities signal a new era of growth for IHG, which promises to create sustainable value for shareholders, employees, hotel owners, and communities.

In conclusion, IHG’s 2023 full-year results are not just a reflection of the past year’s success; they are a beacon of what’s to come. With an unwavering commitment to growth, innovation, and shareholder value, IHG is setting a new standard for the hospitality industry, ready to embrace the challenges and opportunities of the future.