IHG Accommodations & Resorts reported half-year outcomes ending June 30, 2024. Highlights embody firm efficiency with working revenue from reportable segments (+12 %) and Adjusted EPS (+12 %); document signings; on observe to return over $1 billion to shareholders; and positivity in long-term progress drivers.
Buying and selling and income
- H1 World RevPAR +3.0 % (Q2 +3.2 %), Americas +1.7 % (Q2 +3.3 %), EMEAA +7.5 % (Q2 +6.3 %), and Larger China -2.6 % (Q2 -7.0 %); U.S. RevPAR constructive from April, and +2.5 % for Q2
- Common each day fee +2.0 %, occupancy +0.6 share factors
- Whole gross revenue1 $16.1 billion, +6 %
System dimension and pipeline
- Gross system progress +4.9 % YOY; internet system progress +3.2 % YOY
- Opened 18,000 rooms (126 inns) in H1; world property of 955,000 rooms (6,430 inns)
- Signed 57,100 rooms (384 inns) in H1, +67 % YOY in complete (or +15 % adjusting for Iberostar and NOVUM); world pipeline of 330,000 rooms (2,225 inns), +15 % YOY
- Opened 11,700 rooms (80 inns) in Q2, representing sequential enchancment on 6,300 in Q1
- Signed 39,400 rooms (255 inns) in Q2, in comparison with 17,700 in Q1; Q2 signings had been up +123 % YOY in complete, or up +23 % adjusting for Iberostar and NOVUM
Margin and revenue
- Charge margin 60.6 %, up +1.8 share factors pushed by buying and selling efficiency and new income from the sale of loyalty factors
- Working revenue from reportable segments of $535 million, up +12 %, features a $10 million hostile foreign money influence
- Reported working revenue of $525 million consists of System Fund and reimbursable lack of $1 million (2023: $87 million revenue) pushed by deliberate discount of prior System Fund surplus, and no distinctive objects (2023: $18 million distinctive revenue)
- Adjusted EPS of 203.9¢, up +12 %, consists of elevated adjusted curiosity expense of $79 million (2023: $58 million), an adjusted tax fee of 27 % (2023: 25 %), and a 5.6 % discount within the weighted common variety of odd shares
Money move and internet debt
- Web money from working actions of $162 million (2023: $315 million) and adjusted free money move of $132 million (2023: $277 million), with the lower pushed by deliberate discount of prior System Fund surplus
- Web debt improve of $510 million since begin of the yr, pushed by $539 million of shareholder returns by way of dividend funds and share buybacks; $3 million international trade hostile influence on internet debt
- Trailing 12-month adjusted EBITDA of $1,140 million +14 % YOY; internet debt:adjusted EBITDA ratio of two.4x
Shareholder returns
- $800 million share buyback program for 2024 was 47 % accomplished as of June 30, 2024
- Interim dividend +10 % to 53.2¢; along with buybacks, on observe to return over $1 billion to shareholders in 2024
Elie Maalouf, CEO, IHG Accommodations & Resorts, stated, “With due to our groups around the globe, we’re making nice progress on the supply of our strategic priorities and the clear framework to drive future worth creation that we set out in February. RevPAR progress accelerated within the newest quarter, reflecting a powerful U.S. rebound in Q2, and the breadth of our world footprint, and growth exercise continues to extend. Along with system progress, notable margin growth, and the good thing about returning surplus capital by way of buybacks, adjusted EPS progress was +12 %.
We celebrated 126 resort openings within the half and the signing of a record-breaking 384 properties, equal to greater than two a day. These included the primary six openings and 118 signings from the NOVUM Hospitality settlement, which doubles our presence within the vital and enticing German market. After progress of +7 % in Q1, a really busy Q2 noticed +23 % extra signings yr‑on‑yr or a greater than doubling when together with NOVUM, and this retains us on observe for internet system dimension progress expectations.”
