- InterContinental Hotels reported a higher RevPAR (Revenue Per Available Room) increase than estimated, rising by 3% compared to an expected 2.78%.
- Pre-tax profits for the fiscal year were $897 million, which is an 11% decrease year-on-year, missing the estimate of $997.8 million.
- Revenue from the company’s reportable segments was $2.31 billion, which is a 6.8% increase year-on-year but slightly short of the $2.32 billion estimate.
- The Americas revenue totaled $1.14 billion, reflecting a 3.3% increase year-on-year, narrowly missing the $1.15 billion forecast.
- EMEAA region (Europe, Middle East, Asia, and Africa) reported revenue of $748 million, surpassing both the estimate of $747.3 million and showing a 10% increase year-on-year.
- The final dividend per share was declared at $1.144, with a total dividend per share amounting to $1.676.
- Net debt rose by 22% year-on-year to $2.78 billion, slightly above the estimated $2.72 billion.
- Operating profit from reportable segments was $1.12 billion, representing a 10% growth year-on-year and aligning with the estimated figures.
- The Americas achieved an operating profit of $828 million, a 1.6% increase year-on-year but below the estimated $853.7 million.
- EMEAA achieved an operating profit of $270 million, which exceeded the estimate of $260.1 million.
- Operating profit before exceptional items was $1.04 billion, up 0.3% year-on-year but short of the $1.12 billion estimate.
- Adjusted EBITDA stood at $1.19 billion, an increase of 9.5% year-on-year, meeting the estimation.
- By the end of the fourth quarter, total rooms numbered 987,125, surpassing the predicted 980,360 rooms.
- A new $900 million buyback programme has been launched, expected to return over $1.1 billion to shareholders in 2025.
- 4Q RevPAR increased by 4.6%, demonstrating a strong performance.
- The company announced the acquisition of the Ruby brand, expanding its portfolio.
- Analyst ratings include 5 buys, 6 holds, and 8 sells.
A look at InterContinental Hotels Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
InterContinental Hotels Group PLC, a company that manages a variety of hotel businesses globally and operates loyalty and rewards programs, has received positive Smart Scores across various factors. With strong scores in Growth, Resilience, and Momentum, the company seems well-positioned for long-term success. A high Growth score indicates potential for future expansion and development within the industry, while top scores in Resilience and Momentum suggest stability and positive market performance. However, the company received a low score in Value, indicating that investors may need to consider other factors beyond just the stock price when evaluating investment opportunities.
In summary, InterContinental Hotels Group‘s overall Smart Scores paint a favorable long-term outlook, especially in terms of growth potential, market resilience, and positive momentum. While the company may not be considered undervalued based on the Value score, its strong performance in other key areas suggests a promising future for investors looking to capitalize on the hotel industry’s continued growth and global reach.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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