Aug 9 (Reuters) – IHG, owner of Holiday Inn, announced on Tuesday a $500 million (489.91 million euros) share buyback program and the resumption of an interim dividend, after its half-year profit more than doubled thanks to the rebound in travel.
Hotel operators have benefited from rising travel spending and longer booking times, driving up occupancy rates and prices, although they face the risks of stubborn inflation and rising prices. from the side of life.
“As the economic outlook is uncertain, with central banks and governments taking steps to manage inflation, we remain confident in our business model,” IHG chief executive Keith Barr said in a statement.
The British hotel group said its second-quarter revenue per available room (RevPAR) for the Americas, its largest sector, was 3.5% above pre-pandemic levels.
The average daily rate – measuring income earned for an occupied room per day – for the first six months of this financial year was also higher than last year and 2019.
The company reported operating profit for the six months ending June 30 of $361 million, up from $138 million a year ago.
The group, which has already resumed payment of the balance of the dividend, restored its interim dividend to 43.9 cents, a level 10% higher than its last payment in 2019.
(Report Muhammed Husain Bangalore, French version Augustin Turpin, said by Kate Entringer)