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IHG Reports Full Year Gross Revenue Increase of 33% for 2022

IHG Reports Full Year Results to 31 December 2022

Underlying 2022 2021% change

  % change
Revenue1 $1,843m $1,390m +33% +39%
Revenue from fee business1 $1,449m $1,153m +26% +28%
Operating profit1 $828m $534m +55% +53%
Fee margin1 56.2% 49.6% +6.6%pts
Adjusted EPS1 282.3¢ 147.0¢ +92%
Total revenue $3,892m $2,907m +34%  
Operating profit $628m $494m +27%  
Basic EPS 207.2¢ 145.4¢ +43%  
Total dividend per share 138.4¢ 85.9¢ +61%  
Net debt1 $1,851m $1,881m (2)%  


1 Definitions for non-GAAP measures can be found in the ‘Use of key performance measures and non-GAAP measures’ section, along with reconciliations of these measures to the most directly comparable line items within the Financial Statements.

Keith Barr, Chief Executive Officer, IHG Hotels & Resorts, said:

“In 2022 we saw demand return strongly in most of our markets, pushing Group RevPAR back close to 2019 levels and fee margin ahead. It’s particularly pleasing that in the second half of the year we exceeded 2019 levels for both RevPAR and profitability. Looking to 2023, while there are economic uncertainties, we expect continued strong leisure demand in many markets, alongside further return of business and group travel and the ongoing reopening of China.

Our strategy over the last five years has significantly strengthened our brand portfolio and seen substantial investment to innovate our technology and distribution platforms. Our recent agreement with Iberostar adds our 18th brand and substantially increases our resort and all-inclusive presence, and we continue to explore further new opportunities like this for additional growth through exclusive partners. Meanwhile, the other six brands we have added since 2017 already contribute more than 10% of our pipeline, and our Luxury & Lifestyle portfolio is now 13% of our system size and 20% of our pipeline as we increase our exposure to higher fee income segments.

In total, we signed 467 hotels in 2022 and opened 269, which led to net system growth of over 4%. The further 1,800 hotels in our pipeline represents future growth of over 30% of today’s system size. The Holiday Inn Brand Family, with its global leadership position, delivered around a third of our hotel signings and half of openings.

IHG’s enterprise platform strength helps our hotel owners capture demand and grow their business, with enterprise contribution increasing in 2022 to represent 77% of their total room revenue. Critical to this was the launch of our new mobile app during the year, which has led to mobile now accounting for more than half of all digital bookings, while the transformation of our IHG One Rewards programme has delivered significant improvements in both enrolments and loyalty contribution. Alongside substantial investments in revenue-generating technology platforms to support future growth, we have also continued to invest in our internal systems to maintain the health of the business, and in capabilities to help IHG and our hotel owners meet our 2030 Journey to Tomorrow responsible business commitments.

IHG’s overarching ambition is to deliver industry-leading growth in our scale, enterprise platform and performance, doing so sustainably for all stakeholders including our hotel owners, guests and society as a whole. We are a stronger and more resilient company than ever before, and we are proud of the advancements made in each of our strategic priorities. Reflecting the confidence we have in continued growth and the highly cash generative nature of our business, the Board is pleased to be recommending a 10% increase in the final dividend in respect of 2022 and to announce a further share buyback programme to return an additional $750m to shareholders in 2023.”

PDF 1.21MbDownload the full announcement of our 2022 Full Year Results

Posted by on February 21, 2023.

Categories: Financial

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