Intercontinental Hotel Group shares declined on Friday as the impending departure of its chief financial officer masked robust revenue growth.
The FTSE 100-listed owner of Holiday Inn recorded a 28 percent increase in income per available room compared to the same period the previous year.
The group’s average daily fee increased by 13 percent compared to 2021 as a result of pricing increases.
Paul Edgecliffe-Johnson, IHG’s chief financial officer and global head of strategy, will leave the board and the firm in six months, the company revealed.
The group has begun the process of selecting his successor.
Morning trading saw a 4.25 percent decline in IHG shares.
Regionally, the Group’s revenue per room increased by 6.8% in the Americas and 20% in Greater China as a result of the removal of Covid-19 limits.
The quarter-over-quarter increase in leisure rates was 15%, and demand has remained robust due to rising worldwide employment rates.
Chief executive Keith Barr stated, “The industry is facing a decline in new hotel openings, with China’s limitations having a significant impact.” Despite this, we opened 51 hotels and signed 89 more for our pipeline in the most recent quarter.
“Since the beginning of the year, our newer brands have climbed to 12% of signings, while conversions have increased to over 30% of openings.
The success of last year’s review activity, which further enhanced the quality and consistency of our estate, has enabled us to achieve the anticipated reduction in the removal rate to about 1.5%.
The company also disclosed that unauthorized access to a portion of its technological systems has disrupted the company’s bookings.
The examination of the event revealed, however, that no visitor information was obtained during the system breach.
It also revealed that 59 percent of its share buyback program, which began on August 9, 2018, and will expire on January 31, 2023, had been completed. The corporation has acquired 5,648,895 shares at an average price of £46.12 per share to date.
