Confident IHG hikes divi

published 14 February 2012

InterContinental Hotels Group has whacked up the full year dividend by after it continued to outperform the hotel industry in key markets such as the US and Greater China in 2011.

Revenue in 2011 rose 9%, or 7% on a constant exchange rates (CER) basis, to $1,768m from $1,628m in 2010, ahead of market expectations of $1,761m. Operating profit surged 26% (CER:25%) to $559m from $444m the year before, and underlying earnings per share rose 32% to 130.4 cents from 2010's 98.6 cents.

Net debt at the end of 2011 had fallen to $538m from $743m a year earlier. The full year dividend has been hiked by 15% to 55 cents from 48 cents; broker Panmure Gordon had predicted a 2011 pay-out of 50.4 cents.