IHG reported a 16.1% increase in RevPAR for 2023, with a 7.6% increase for the fourth quarter. Compared to 2019, RevPAR was up 10.9% for the year and 12.7% for the fourth quarter.
Other highlights include:
- Americas FY RevPAR up 7% YoY (Q4 +1.5%), EMEAA +23.7% (Q4 +7%) and Greater China +71.7% (Q4 +72%), reflecting the differing levels of travel restrictions that were still in place in 2022
- ADR up 5% vs 2022, +13% vs 2019; occupancy up 6 pts. vs 2022, 1 pt. lower vs 2019
- Total gross revenue of $31.6B, +23% vs 2022, +13% vs 2019
- Gross system growth +5.3%; net system size growth of +3.8%
- Opened 47.9K rooms (275 hotels), +16% YoY (ex. Iberostar); global estate 946K rooms (6,363 hotels)
- Signed 79.2K rooms (556 hotels), +26% YoY (ex. Iberostar); global pipeline 297K rooms (2,016 hotels), +5.5% YoY
- Q4 opened 19.2K rooms (117 hotels) and signed 28.3K rooms (194 hotels), one of the highest quarters on record
Elie Maalouf, CEO, IHG Hotels & Resorts, said, “I was honored to take over as IHG’s group CEO in July and would like to thank our teams for delivering an excellent set of results. Travel demand was strong across all markets, with RevPAR up 16% on last year and 11% ahead of the 2019 pre-pandemic peak. Combined with the power of our enterprise and efficient operating model, profit from reportable segments grew 23% and exceeded $1 billion for the first time, and adjusted EPS grew 33%. Today, we are announcing a further $800 million share buyback program, which together with ordinary dividends is expected to return over $1 billion to shareholders in 2024.
“Alongside strong trading and financial performances, we continued to grow our portfolio and the global footprint of our brands. We opened 275 hotels in 2023 and signed more than double that amount—556 hotels—into our pipeline. Adjusting for the effect of the Iberostar hotels joining IHG’s system, openings for the fourth quarter grew by 27% year-on-year and signings were up by 50%, representing one of our biggest-ever quarters for development activity.
“As we look ahead, our evolved strategic priorities and clear plans will further reinforce IHG Hotels & Resorts as the hotel company of choice for guests and owners. The travel industry has attractive, long-term drivers of demand and the strength of our brand portfolio and enterprise platform will continue to boost our RevPAR and system size growth. Combined with our scale and cost-base efficiencies, this will further expand fee margin. IHG’s strong cash generation supports investment in growth initiatives, sustainably increasing our ordinary dividend and the regular return of surplus capital such as through buybacks. We look forward to an important next chapter of growth for IHG that creates long-term sustainable value for our shareholders and benefits our employees, hotel owners and communities.”
