LONDON (Reuters) - InterContinental Hotels Group Plc (L:IHG), one of the world's largest hoteliers, promised a special payout of $1.5 billion, even as strong demand across all its regions helped it post a rise in yearly profit, sending its shares up 4 percent.
With its Europe business being the strongest performer through the last two quarters, IHG's full-year operating profit rose 4 percent to $680 million, ahead of analysts' expectation of $672 million, according to a company-compiled consensus.
Global revenue per available room (RevPAR), a key industry measure, rose 2.4 percent at constant currency in the fourth quarter helped by higher rates, versus 4.8 percent comparable growth in the third quarter and 5.1 percent a year ago.
UBS analysts wrote in a client note that the special dividend should help shares, as results were broadly in line.
Shares in the company were up about 4 percent at 2548 pence at 0848 GMT, making them the second largest percentage gainers on London's FTSE 100 index (FTSE) on Tuesday.
Although the return was expected following the sales of Le Grand InterContinental in Paris and InterContinental Hong Kong, at least two analysts said the total amount matched the top end of their expectations.
The company, which runs over 5,000 hotels under brands such as Crowne Plaza, Holiday Inn and InterContinental, said it would return the $1.5 billion through a special dividend with a share consolidation in the second quarter. It also topped off its total dividend by 10 percent to 85 cents.
(Peporting by Esha Vaish; Editing by Nick Macfie and Sunil Nair) OLGBBUS Reuters UK Online Report Business News 20160223T074950+0000