InterContinental Hotels Group: Full Year Results to 31 December 2005
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InterContinental Hotels Group: Full Year Results to 31 December 2005
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Category: Worldwide -
This is a press release selected by our editorial committee and published online for free on 2006-03-02
Headlines
Transformation to a managed and franchised business nearing completion. IHG now delivers more stable earnings and has a clear growth focus.
Continuing(1) operating profit(2) up 42% from £134m to £190m with operating profit margin up 4%pts. Group operating profit £317m, up £20m.
Adjusted earnings per share from continuing business up 44% from 17.3p to 24.9p. Group basic earnings per share up 77% from 53.9p to 95.2p driven by profit on disposal of operations.
Final dividend up 7% from 10.0p to 10.7p, total normal dividend up 7% from 14.3p to 15.3p.
9.0% RevPAR growth across IHG’s 3,600 hotels, mostly rate driven with strongest trading in the Americas.
70,000 rooms signed, up 57% over 2004. Pipeline is the industry’s largest at 108,500 rooms, 20% of existing room count. Room count up 3,300 to 537,500 rooms; 11,800 net rooms added, before South African franchise exits and closure of hurricane damaged properties.
Following disposal of Britvic (£371m) and FelCor shares ($191m) IHG announces a further £500m special dividend with a share consolidation to be paid during quarter two 2006.
A reconciliation between basic and adjusted earnings per share is shown in note 8. All figures and movements are shown before special items except for group basic earnings per share and group operating profit reported above.
Notes:
1 – Continuing business excludes Britvic and hotel assets sold or held for sale at 31 December 2005.
2 – See appendix 3 for analysis of financial headlines.
Commenting on the results, Andrew Cosslett, Chief Executive of InterContinental Hotels Group PLC said:
“This is a strong set of results with a solid performance across all three of our regions. 2005 was a year of significant change for IHG and a number of key strategic milestones were met. We executed on our asset disposal programme and successfully floated Britvic, to become a pure play, high growth hotel company, managing and franchising hotels using our attractive stable of brands. The record number of hotels we currently have under development gives us confidence we can grow this business and achieve our rooms target as we look to the years ahead."
Current trading
RevPAR continues to increase across the business. InterContinental London's refurbishment will impact EMEA results again this year. Further progress made towards the room growth target, with 11,100 rooms signed so far this year, including almost 6,000 rooms in China with two important new partners.
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