Profits plunge for Intercontinental Hotels group

Intercontinental

Intercontinental Hotel in Lagos Nigeria: group reports profit decline

InterContinental Hotels Group, which opened a new hotel in Lagos Nigeria last year, said on Tuesday that annual net profit plunged owing to increased tax charges.

The world’s largest hotel operator by number of rooms reported $372 million profit after tax, for 2013, a 31 per cent decline compared with the group’s performance in 2012, IHG said in an earnings statement.

But pre-tax profit rose by almost 10 percent to $600 million for IHG, which owns the InterContinental, Crowne Plaza and Holiday Inn brands.

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“We delivered good underlying growth in revenues and profits,” the company’s chief executive Richard Solomons said in the statement.

Intercontinental Hotel in Lagos Nigeria: group reports profit decline
Intercontinental Hotel in Lagos Nigeria: group reports profit decline

“Looking into 2014, although economic conditions in some markets remain uncertain, forward bookings data is encouraging and we are confident that we will deliver another year of growth.”

IHG revenue grew 4.0 percent to $1.9 billion in 2013. Revenue per available room (RevPAR) — a key industry measure — gained 3.8 percent.

It raised its full-year dividend by 9.0 percent to 70 US cents per share and announced on Tuesday that it had sold the InterContinental Mark Hopkins San Francisco hotel for $120 million.

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