InterContinental (LON:IHG) Hotels Group PLC (LON:IHG, NYSE:IHG) has declared an interim dividend for 2024 at a rate of 40.8 pence per ordinary share, the company announced today. This follows the Board's previous announcement on August 6, 2024, which stated an interim dividend of 53.2 cents per share.
The conversion to Pence Sterling was based on the average market exchange rates from September 9, 2024, to the date of the announcement, utilizing the WMR closing mid-point spot rate at 4:00 pm London time, as reported in the Financial Times. The determined exchange rate was £1 to US$1.3050.
The global hospitality company, which operates more than 6,400 hotels in over 100 countries, has a diverse portfolio of 19 hotel brands and a development pipeline of over 2,200 properties. Its brands range from luxury and lifestyle to essentials and suites, catering to a variety of guest needs.
The interim dividend will provide shareholders with a direct return on their investment, reflecting the company's financial performance and commitment to delivering shareholder value. This financial decision is part of the company's regular financial reporting and is in accordance with its fiscal policies.
Investors and media representatives looking for further information have been directed to contact IHG's investor relations and media relations teams through the provided email addresses.
This announcement is based on the information contained in a report filed by InterContinental Hotels Group PLC with the Securities and Exchange Commission today. The company is incorporated and registered in England and Wales, with corporate offices and hotels employing approximately 375,000 people worldwide.
In other recent news, InterContinental Hotels Group (IHG) showed confidence in its growth trajectory during a recent earnings call, despite mixed market signals. The company reported positive revenue per available room (RevPAR) growth and expressed optimism about long-term prospects in China and other key markets.
IHG is on track with a net unit growth of 4.2%, including the NOVUM deal, and is set to open over 7,000 rooms this year. Despite a decrease in incentive management fees in China, the company is seeing strong growth in the Asia Pacific and EMEAA regions. IHG is also making progress with its credit card, with further details to be provided later. These are among the recent developments for the company.
InvestingPro Insights
InterContinental Hotels Group PLC (IHG) has shown a commitment to enhancing shareholder returns, as evidenced by the management's aggressive share buyback strategy and a track record of raising its dividend for three consecutive years. This aligns with the company's recent interim dividend announcement and underscores its dedication to delivering value to its investors. Moreover, IHG's stock is known for its low price volatility, offering a relatively stable investment option in the hospitality sector.
On the financial front, IHG's market capitalization stands at $16.1 billion, with a price-to-earnings (P/E) ratio of 25.95. While this P/E ratio indicates a high valuation relative to near-term earnings growth, it is worth noting that the company is profitable, with a return on assets of 14.62% over the last twelve months as of Q2 2024. Furthermore, while analysts anticipate a sales decline in the current year, IHG has maintained a gross profit margin of nearly 50%, showcasing its ability to manage costs effectively.
For those considering an investment in IHG, the company's moderate level of debt and its profitability over the last twelve months may be attractive factors. For a more in-depth analysis and additional InvestingPro Tips, investors can explore https://www.investing.com/pro/IHG, which includes a total of 11 tips to guide investment decisions.
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