Intercontinental Hotels Group (IHG)

[daveh]

Dividend sterling amount:
https://www.investegate.co.uk/interco.- ... 00015739X/

Accordingly, the Pence Sterling amount payable to Shareholders in relation to the final dividend will be 76.08 pence per ordinary share.

[daveh]

1st Qtr trading update:
https://www.investegate.co.uk/announcement/7514254

● Q1 group RevPARa +33% vs 2022, with Americas +18%, EMEAA +64% and Greater China +75%
● Q1 group RevPAR +6.8% vs 2019, with Americas +11.1%, EMEAA +9.7% and Greater China (9.1)%
● Average daily rate +11% vs 2022, +10% vs 2019; occupancy +10%pts vs 2022, (2)%pts vs 2019
● Gross system size growth +5.8% YOY, +0.9% YTD; opened 8.4k rooms (45 hotels) in Q1, ahead of 2022
● Net system size growth +4.2% YOY on an adjustedb basis, +0.4% YTD
● Global system of 915k rooms (6,179 hotels); 66% across midscale segments, 34% across upscale and luxury
● Signed 16.5k rooms (108 hotels) in Q1, in-line with 2022; global pipeline of 287k rooms (1,906 hotels), +3.3% YOY

and

"We've seen a good start to the year, with continued strong trading in both the Americas and EMEAA, and an excellent rebound in demand in Greater China since the lifting of travel restrictions. Leisure demand has remained buoyant, and there has been further return of business and group travel as expected.

The guest appeal of our brands has continued to support pricing, with rate up 10% versus 2019 and occupancy now almost back to pre-Covid levels. For owners, the strength of our enterprise platform and investments we've made to enhance our portfolio and widen our offer continues to attract demand and drive growth. We signed over 16 thousand rooms across 108 hotels into our development pipeline in the quarter, in line with our performance in 2022. A third of all signings were across our six Luxury & Lifestyle brands, as we accelerate our growth in the segment.

We opened eight thousand rooms across 45 hotels in the quarter, and while financing challenges for the wider commercial real estate industry are holding back new hotel development and opening activity fully returning to normal, we anticipate improving levels as the year progresses. Meanwhile, conversions increased to be over a third of both openings and signings in the period.

Whilst comparatives to 2022 get tougher from the second quarter onwards and there are ongoing economic uncertainties, IHG has continued to prove the resiliency of its business model and we remain confident about the strong tailwinds for attractive long-term, sustainable growth and value creation. We look forward to making additional progress over the course of 2023 in further evolving our brand portfolio, increasing RevPAR and expanding our system size."

CEO Succession

https://www.investegate.co.uk/announcement/7514318

InterContinental Hotels Group PLC

IHG CEO Succession

Keith Barr, Group CEO to step down and to be succeeded by Elie Maalouf, Americas CEO

InterContinental Hotels Group ("IHG") [LON:IHG, NYSE:IHG (ADRs)] today announces that Keith Barr has informed the Board of his decision to step down from his role as Group Chief Executive Officer (CEO) and from the IHG Board. Keith intends to return with his family to the US. His final day as CEO will be 30 June, after which he will remain available to support and advise the business until the end of 2023.

Keith will be succeeded by Elie Maalouf, a member of IHG's Board and Executive Committee, who has led IHG's Americas business as regional CEO for the past eight years. Elie will take up his new position on 1 July and will be based in the UK to lead the business.

[daveh]

Half year results:
https://www.investegate.co.uk/announcem ... rt/7681718

● Strong trading: H1 RevPAR up +24% YOY; further sequential improvement vs 2019 with Q1 +6.8% and Q2 +9.9%

● Americas H1 RevPAR up +11% YOY, EMEAA +42% and Greater China +94%, reflecting the differing levels of travel restrictions that were still in place in H1 2022

● Average daily rate up +7% vs 2022, +11% vs 2019; occupancy up +9%pts vs 2022, just (1.3)%pts lower vs 2019

● Gross system growth +6.3% YOY; net system size growth of +4.8% YOY

● Opened 21.0k rooms (108 hotels) in H1, +40% more than H1 2022; global estate now at 925k rooms (6,227 hotels)

● Signed 34.2k rooms (239 hotels) in H1, +11% more than H1 2022; global pipeline now at 286k rooms (1,931 hotels), +2.9% YOY; 17.7k rooms (131 hotels) in Q2, +7% ahead of Q1 and +25% more than Q2 2022

● Fee margin of 58.8%, up +3.3%pts vs 2022 on trading recovery in EMEAA and Greater China

● Operating profit from reportable segments of $479m, +27% vs 2022; this included $5m adverse currency impact

● Reported operating profit of $584m, including $87m of System Fund profit and an $18m exceptional profit

● Net cash from operating activities of $315m (2022: $175m), with adjusted free cash flow1 of $277m (2022: $142m)

● Net debt increase of $419m since start of the year includes $372m share buybacks, $166m dividends and a $112m net foreign exchange adverse impact

● Interim dividend 48.3¢, +10% vs 2022; dividend payments in 2023 will return close to $250m to IHG's shareholders

● Trailing 12-month adjusted EBITDA1 of $996m, +23% vs 2022; net debt:adjusted EBITDA ratio of 2.3x

● Current $750m buyback programme 47% complete; share buybacks together with ordinary dividends are on track to return approximately $1.0bn to shareholders in 2023

● New midscale conversion brand launching, with strong interest from owners already expressed

and they say about the dividend:

Dividends and shareholder returns

With the improvement in profitability in the first half of 2023, our net debt:adjusted EBITDA ratio reduced to 2.28x at 30 June 2023. The Board is therefore declaring an interim dividend of 48.3¢, which represents growth of 10% on the 43.9¢ interim dividend paid in 2022.

The ex-dividend date is Thursday 31 August 2023 and the Record date is Friday 1 September 2023. The corresponding dividend amount in Pence Sterling per ordinary share will be announced on Thursday 14 September 2023, calculated based on the average of the market exchange rates for the three working days commencing 11 September 2023. The dividend will be paid on Thursday 5 October, resulting in a cash outflow of around $80m. This will result in total dividends paid to shareholders in 2023 amounting to approximately $250m.

In August 2022 the Board approved a $500m share buyback programme that commenced on 9 August 2022 and completed in January 2023. In February 2023 the Board approved a further $750m share buyback programme, to be completed during 2023. In the six months to 30 June 2023, 5.4m shares were repurchased for total consideration of $372m (including transaction costs) of which $38m relates to the completion of the 2022 programme and $334m to the 2023 programme.

and earlier they said:

Capital allocation: growing the ordinary dividend and returning surplus capital through buybacks

IHG's asset-light business model is highly cash-generative through the cycle and enables us to invest in our brands and strengthen our enterprise platform. We have a disciplined approach to capital allocation which ensures that the business is appropriately invested in, whilst looking to maintain an efficient and conservative balance sheet.

IHG's perspectives on the uses of cash generated by the business are unchanged: ensuring the business is investing to optimise growth that will drive long-term shareholder value creation, funding a sustainably growing dividend, and then returning surplus capital to shareholders, whilst targeting our leverage ratio within a range of 2.5-3.0x net debt:adjusted EBITDA to maintain an investment grade credit rating.

IHG intends for the ordinary dividend to be covered 2-2.5x by Adjusted EPS (a payout ratio of 40-50%). This is consistent with cover averaging 2.3x in the 2012-2019 period. The total dividend for 2022 was covered 2.0x by Adjusted EPS.

Ordinary dividend payments in 2023 will return close to $250m to IHG's shareholders. As announced in February, a $750m share buyback programme is returning further surplus capital. This was expected to reset leverage into our target range, and it follows on from last year's $500m programme which already reduced the total number of voting rights in the Company by 5.0%. At the 30 June 2023 balance sheet date, the current $750m programme was 47% complete with $349.5m (£280.7m) spent repurchasing 5.2 million shares at an average price of £54.44 per share; this reduced the total number of voting rights in the Company by a further 2.9% to 170.2 million up to the balance sheet date.

EPS is calculated using the weighted average number of shares (WANOS) in issue for the period which reduces accordingly to take account of the timing of shares repurchased. For the first half of 2023, the WANOS was 173.1 million shares, a 6% lower share count than the comparable period.

IHG's business model is expected to continue its strong track record of converting around 100% of adjusted earnings into free cash flow. Whilst prioritising investing in the business to optimise growth, our asset-light model is expected to provide the opportunity to routinely return additional capital to shareholders such as through rolling share buybacks, which would further enhance growth of earnings per share.

[daveh]

Sterling announcement for dividend:
https://www.investegate.co.uk/announcem ... le/7756203

Accordingly, the Pence Sterling amount payable to Shareholders in relation to the interim dividend will be 38.7 pence per ordinary share.

[daveh]

3rd qtr results:
https://www.investegate.co.uk/announcem ... e-/7828360

Highlights



● Q3 group RevPAR +10.5% vs 2022, with Americas +4.1%, EMEAA +15.9% and Greater China +43.2%

● Q3 group RevPAR +12.8% vs 2019, with Americas +13.8%, EMEAA +17.5% and Greater China +9.3%

● Average daily rate +4.1% vs 2022, +14.8% vs 2019; occupancy +4.1%pts vs 2022, (1.3)%pts vs 2019

● Gross system size growth +6.2% YOY, +3.1% YTD; opened 7.7k rooms (50 hotels) in Q3, similar to 2022

● Net system size growth +4.7% YOY, +2.0% YTD; excluding Iberostar, +2.9% YOY, +1.6% YTD

● Global system of 930k rooms (6,261 hotels); 67% across midscale segments, 33% across upscale and luxury

● Signed 16.8k rooms (123 hotels) in Q3, +27% vs 2022; global pipeline of 292k rooms (1,978 hotels), +5.1% YOY

● On track to have returned $1.0bn to shareholders in 2023 through share buybacks and dividend payments

and

Share buyback and capital allocation update

As announced in February 2023, a $750m share buyback programme is returning surplus capital to shareholders. This follows the $500m programme announced in 2022 which already reduced the total number of voting rights in the Company by 5.0%. The current 2023 programme is 94% complete with $704.7m (£561.2m) having been cumulatively spent to date, repurchasing 10.1 million shares at an average price of £55.76 per share. The 2023 programme to date has therefore reduced the total number of voting rights in the Company by a further 5.7% to 165.3 million as at market close on Thursday 19 October 2023.

IHG's 2023 share buyback programme, together with ordinary dividend payments, will have returned $1.0bn to shareholders during the year. This is equivalent to 10% of IHG's $10.0bn (£8.3bn) market capitalisation at the start of 2023, and more than 8% of IHG's most recent $12.4bn (£10.2bn) market capitalisation.

IHG's perspectives on the uses of cash generated by the business remain unchanged: ensuring the business is investing to optimise growth that will drive long-term shareholder value creation, funding a sustainably growing dividend, and then returning surplus capital to shareholders, whilst targeting our leverage ratio within a range of 2.5-3.0x net debt:adjusted EBITDA to maintain an investment grade credit rating. Having already returned $500m of surplus capital via the 2022 programme and $750m which is being returned over the course of 2023, the highly cash generative nature of our business model means we expect to have significant ongoing capacity to return further surplus capital to shareholders, both in the ordinary course and as we look to move leverage into our target range over time. The Board's next assessment in relation to the amounts, mechanisms and timings of future capital returns will be carried out in early 2024, taking into account macro-economic conditions and the trading outlook at that time. Our next capital allocation update will therefore be communicated as part of the 2023 Full Year Results to be announced on Tuesday 20 February 2024.

They look like a decent update. Personally in the present interest rate climate I wouldn't want them to use to much leverage, but I assume the managers know what they are doing.

[daveh]

Final results:
https://www.investegate.co.uk/announcem ... ts/8045488

Highlights:

Trading and revenue

· Strong trading: global RevPAR2 up +16.1% YoY (Q4 +7.6%); global RevPAR up +10.9% vs 2019 (Q4 +12.7%)

· Americas FY RevPAR up +7.0% YoY (Q4 +1.5%), EMEAA +23.7% (Q4 +7.0%) and Greater China +71.7% (Q4 +72.0%), reflecting the differing levels of travel restrictions that were still in place in 2022

· Average daily rate up +5% vs 2022, +13% vs 2019; occupancy up +6%pts vs 2022, just (1)%pt lower vs 2019

· Total gross revenue2 of $31.6bn, +23% vs 2022, +13% vs 2019

System size and pipeline

· Gross system growth +5.3%; net system size growth of +3.8%

· Opened 47.9k rooms (275 hotels), +16% YoY (ex. Iberostar); global estate 946k rooms (6,363 hotels)

· Signed 79.2k rooms (556 hotels), +26% YoY (ex. Iberostar); global pipeline 297k rooms (2,016 hotels), +5.5% YoY

· Q4 opened 19.2k rooms (117 hotels) and signed 28.3k rooms (194 hotels), one of the highest quarters on record

Margin and profit

· Fee margin2 of 59.3%, up +3.4%pts driven by trading recovery in EMEAA and Greater China

· Operating profit from reportable segments2 of $1,019m, up +23%; this included $13m adverse currency impact

· Reported operating profit of $1,066m, including a profit of $19m from System Fund and reimbursables (2022: loss of $105m) and a $28m exceptional profit (2022: $95m net exceptional charges)

Cash flow and net debt

· Net cash from operating activities of $893m (2022: $646m), with adjusted free cash flow2 of $819m (2022: $565m), the latter representing 129% conversion of adjusted earnings2 (2022: 111%)

· Net debt increase of $421m reflects the strong adjusted free cash flow, $1.0bn of shareholder returns and a $105m net foreign exchange adverse impact

· Adjusted EBITDA2 of $1,086m, +21% vs 2022; net debt:adjusted EBITDA ratio of 2.1x

Shareholder returns

· Completion of 2023's $750m share buyback programme, and payment of $245m in ordinary dividends

· Final dividend of 104.0¢ proposed, +10% vs 2022, resulting in a total dividend for the year of 152.3¢

· New $800m buyback programme launched, which together with ordinary dividends is expected to return over $1bn to shareholders in 2024

Clear framework to drive future value creation over the medium to long term

· High single digit percentage growth in fee revenue, though combination of RevPAR and system size growth, together with 100‑150bps fee margin expansion, annually on average over the medium to long term

· 100% conversion of adjusted earnings into adjusted free cash flow, supporting investment in the business to optimise growth, sustainably growing the ordinary dividend and returning surplus capital

· 12-15% adjusted EPS compound annual growth rate, including the assumption of ongoing share buybacks

On dividends they say (together with lots more information on future dividends and more share buybacks);

IHG typically pays dividends weighted approximately one-third to the interim and two-thirds to the final payment. The total dividend for 2022 was 138.4¢. The interim dividend for 2023 was increased by 10% to 48.3¢. With a proposed final dividend increase of 10% to 104.0¢, the total dividend for 2023 of 152.3¢ will have increased by 10%. The ex-dividend date is Thursday 4 April 2024 and the record date is Friday 5 April 2024. Subject to shareholder approval at the AGM on Friday 3 May 2024, the dividend will be paid on Tuesday 14 May 2024.

[daveh]

Final dividend sterling amount:

https://www.investegate.co.uk/announcem ... on/8157533

will be 83.9p

[daveh]

1st qtr trading update:
https://www.investegate.co.uk/announcem ... te/8172403

Highlights

● Q1 global RevPAR +2.6% YOY, with Americas -0.3%, EMEAA +8.9% and Greater China +2.5%

● Average daily rate +2.3%, occupancy +0.2%pts

● Gross system size growth +5.0% YOY, +0.7% YTD; opened 6.3k rooms (46 hotels) in Q1, +11.1% more YOY adjusting for Iberostar

● Net system size growth +3.4% YOY, +0.0% YTD; adjusting for Iberostar +3.2% YOY, +0.0% YTD

● Global system of 946k rooms (6,368 hotels); 66% across midscale segments, 34% across upscale and luxury

● Signed 17.7k rooms (129 hotels) in Q1, +7.1% YOY; global pipeline of 305k rooms (2,079 hotels), +6.6% YOY

● $239m of 2024's $800m share buyback programme completed to date, reducing share count by 1.4%

● Agreement in Germany with NOVUM Hospitality signed in April, adding up to 17.7k rooms (119 hotels) or +1.9% to global system growth

● Changes to System Fund arrangements, improving owner economics and growing IHG's ancillary fee streams

Changes to System Fund arrangements:
https://www.investegate.co.uk/announcem ... s-/8172252