Proactive Investors - Holiday Inn owner Intercontinental Hotels Group PLC (LON:IHG) is planning on expanding its fee margins in 2024, through a mix of cost-cutting and revenue growth, according to its new boss Elie Maalouf.
Maalouf joined IIHG in mid-2023, but Monday’s full-year update was one of his first chances to leave his mark on the company.
He said: “The travel industry has attractive, long-term drivers of demand, and the strength of our brand portfolio and enterprise platform will continue to boost our RevPAR and system size growth.
“Combined with our scale and cost base efficiencies, this will further expand fee margin.”
The hotel group reported total revenues of US$4.6 billion and an operating profit of US$1.06 billion, representing earnings per share of 443.8 cents.
IHG's global system size saw an increase of 3.8%, opening 47.9k rooms over the year.
This growth is attributed to strong trading, particularly in the Americas, Europe, Middle East, Africa and Greater China regions, reflecting the recovery and growth of the travel and hospitality sectors post-pandemic.
A final dividend of 104.0 cents for the year was also announced, a 10% increase from the previous year, with a new $800 million share buyback programme having also been launched.
Maalouf added that the company would use its strong cash generation to support investment, sustainable increases of the dividend and the regular return of surplus capital through buybacks.
“We look forward to an important next chapter of growth for IHG that creates long-term sustainable value for our shareholders and benefits our employees, hotel owners and communities," he concluded.