Holiday Inn-owner IHG has resumed paying a dividend today after reporting an annual profit that beat market expectations due to strong demand for staycations and resort stays in the US.
Hotel operators are still recovering from the Covid-19 pandemic's impact on travel, but analysts say the sector has already been through the worst and a strong pick-up is likely from March.
"While there may be unexpected challenges ahead, we are confident in our ability to respond and adapt to what consumers and owners need," chief executive Keith Barr said.
The owner of the Crowne Plaza, Regent, and Hualuxe hotel chains said operating profit from reportable segments for the year ended December 31 was $534m, compared with $219m a year ago.
It it was still down 38% from 2019 levels.
Analysts on average had estimated an operating profit from reportable segments at $503m, according to a company-compiled consensus.
IHG's global hotel room revenue (RevPAR), a key performance indicator for the sector, was down 17% compared to 2019 in the fourth quarter, with occupancy at 56%.
RevPAR for Americas - its largest market - was down 7% in the last three months of 2021, while Greater China dropped 33% compared with pre-pandemic levels.
The company proposed a final dividend of 85.9 cents per share.
Its American rivals Hilton Worldwide's and Marriott's results also topped market expectations last week.
