Skip to content

Search

Latest Stories

IHG projects $1 billion shareholder return following strong 2023

It aims to grow luxury without neglecting mid-scale business

IHG projects $1 billion shareholder return following strong 2023

IHG HOTELS & RESORTS reported a 23 percent increase in profit from reportable segments in 2023, surpassing the $1 billion milestone for the first time. The company also noted a 16.1 percent rise in RevPAR, a 5.1 percent increase in ADR, and a 6.4 percentage point uptick in occupancy during the previous year. It anticipates returning more than $1 billion to shareholders through dividends and share buybacks this year, IHG said in a statement.

“Travel demand was strong across all markets, with RevPAR up 16 percent from last year and 11 percent ahead of the 2019 pre-pandemic peak," said Elie Maalouf, IHG Hotels & Resorts’ chief executive officer. "Combined with the power of our enterprise and efficient operating model, profit from reportable segments grew by 23 percent, exceeding one billion dollars for the first time, and adjusted EPS grew by 33 percent.”


This marks one of the company’s most significant quarters for development activity, IHG said. The company reported full-year revenue of $4.62 billion, marking a nearly 19 percent increase from $3.89 billion in 2022.

“We are announcing a further $800 million share buyback program, which together with ordinary dividends is expected to return over $1 billion to shareholders in 2024,” said Maalouf, who assumed the top position last July following nearly nine years of leadership in the group's largest region, the Americas.

Pipeline expansion 

The Holiday Inn-owner sustained portfolio expansion, while strengthening the global presence of its brands in 2023, IHG said. It opened 275 hotels and signed more than double that amount—556 hotels—into its pipeline in 2023. Adjusting for the inclusion of Iberostar hotels joining IHG’s system, fourth-quarter openings grew by 27 percent year-on-year, while signings increased by 50 percent.

“The travel industry has attractive, long-term drivers of demand, and the strength of our brand portfolio and enterprise platform will continue to bolster our RevPAR and system size growth,” Maalouf said. “Combined with our scale and cost base efficiencies, this will further expand fee margins. IHG’s strong cash generation supports investment in growth initiatives, sustainably increasing our ordinary dividend and regularly returning surplus capital, such as through buybacks.”

The company witnessed growth in its primary markets, the U.S. and China, as well as in other regions such as the Middle East, Southeast Asia (including India), Korea, and Japan, the statement added. Hotel chain owners have benefited from a tourism surge over the past year, with travel demand projected to exceed pre-pandemic levels.

Scaling upscale 

The company aims to expand the scale of its luxury and lifestyle properties without compromising its mid-scale business, IHG said. It targets high single-digit growth in fee revenue through yearly increases in RevPAR and hotel numbers, on average, over the medium to long term.

“We look forward to an important next chapter of growth for IHG that creates long-term sustainable value for our shareholders and benefits our employees, hotel owners and communities,” said Maalouf.

During the fourth quarter/full-year 2023 earnings calls, Choice Hotels International and Wyndham Hotels & Resorts discussed Choice’s proposed acquisition of Wyndham. As the companies exchanged remarks, reports emerged that four state attorneys general are examining the proposed acquisition, potentially initiating investigations of their own.

More for you

Chart showing decline in U.S. extended-stay hotel occupancy and RevPAR in May 2025

Report: May fifth month for drop in extended-stay occupancy

Summary:

  • Extended-stay occupancy fell 2.2 percent in May, the fifth straight monthly decline; ADR and RevPAR also dropped for a second consecutive month.
  • May marked 44 straight months of supply growth for the segment at 4 percent or less, with annual growth below the 4.9 percent long-term average.
  • Extended-stay room revenues rose 0.5 percent, while total industry revenue grew 0.9 percent, led by segments with little extended-stay supply.

EXTENDED-STAY HOTEL occupancy fell 2.2 percent in May, the fifth consecutive monthly decline, exceeding the 0.7 percent drop reported for all hotels by STR/CoStar, according to The Highland Group. Extended-stay occupancy was 10.5 percentage points above the total hotel industry, at the lower end of the long-term average premium range.

Keep ReadingShow less
Auro Hotels Showcases India Culture at TCMU Exhibit

Auro unveils 'India Cultural Corner' for children

Summary:

  • Auro Hotels opened the India Cultural Corner, where children can check in and explore Indian culture at The Children's Museum of the Upstate.
  • Families can engage with community art, activities and storytelling about daily life in India.
  • The exhibit runs through May 2026, offering interactive learning on Indian culture.

AURO HOTELS RECENTLY opened the India Cultural Corner at The Children's Museum of the Upstate in Greenville, South Carolina, offering a look into Indian stories for American families. The exhibition, held at The Grand Geo Hotel and running through May 2026, includes a hotel desk where children can check in and explore Indian culture through interactive activities.

Keep ReadingShow less
U.S. Firms Lose $2.4 Trillion by Skimping on Business Travel

Report: Business travel gaps cost U.S. firms $2.4T

Summary:

  • U.S. companies risk losing more than $2.4 trillion in sales due to underinvestment in business travel, says GBTA.
  • An 8.3 percent T&E increase could drive a 6 percent sales gain, despite post-COVID virtual meeting tools.
  • Current T&E spending is $294 billion—$24 billion short of the $319.1 billion needed for peak profitability.

U.S. COMPANIES ARE missing more than $2.4 trillion in potential sales due to underinvestment in business travel, according to a Global Business Travel Association report. Despite a post-pandemic rebound, travel and entertainment spending remains $66 billion below 2019 levels.

Keep ReadingShow less
AI threats in hospitality

Study: Cyberattacks on hotels to surge

Summary:

  • Around 66 percent of hotel IT and security executives expect more cyberattacks this summer, and 50 percent anticipate greater severity, according to VikingCloud.
  • Guest-facing systems most at risk include POS and payment technology at 72 percent, guest WiFi at 56 percent and front desk systems at 34 percent.
  • About 48 percent of executives lack confidence in their staff’s ability to detect and respond to AI-driven attacks and deepfakes.

APPROXIMATELY 66 PERCENT of hotel IT and security executives expect an increase in cyberattack frequency and 50 percent anticipate greater severity during the summer travel season, according to cybersecurity firm VikingCloud. In summer 2024, 82 percent of North American hotels experienced a cyberattack and 58 percent were targeted five or more times.

Keep ReadingShow less
Newly renovated Marriott Saddle Brook hotel in New Jersey, now managed by Stonebridge Cos.

Stonebridge to manage Marriott in Saddle Brook, NJ

Summary:

  • Stonebridge Cos. has added the Marriott Saddle Brook in Saddle Brook, New Jersey, to its full-service portfolio.
  • The renovated property is owned by Victory Worldwide LLC, led by CEO Anil Monga.
  • Located 20 miles from New York City, it is near the Meadowlands Sports Complex, Garden State Plaza and Hackensack University Medical Center.

STONEBRIDGE COS. RECENTLY added the 244-room Marriott Saddle Brook in Saddle Brook, New Jersey, to its full-service managed portfolio. The property is owned by Victory Worldwide LLC, led by CEO Anil Monga.

Keep ReadingShow less