Shares in InterContinental Hotels fell on Tuesday after as investors took profits following the company's stronger than expected full-year results.
The shares remain up 22% since September, despite the equity market sell-off earlier in February and also after Tuesday's loss of 4.62% to £44.80 as investors - perhaps a little disappointed that more cash wasn't returned in dividends or share buybacks - took the chance to realise profits by selling shares on the market.
Full-year operating profit rose 7% to $759m, up from the $707m reported in 2016 and beating the company's own forecast of $752.1m.
Revenue per available room, a key profitability metric in the hotels sector, rose 4% in the final quarter of 2017, up from 1.7% in the same period a year ago.
Full-year financial highlights
- Total gross revenue rose 5% to $25.7bn
- Reported revenue climbed 4% to $1.784bn
- Adjusted earnings per share gained 20% to $2.45
- Total dividend $1.04 up from $0.94 a year earlier
- Net debt rises to $1.85bn from $1.51bn a year ago
- Annual revenue per available room growth of 2.7%
Keith Barr, chief executive (left), said: "In order for us to capitalise on the opportunities ahead, we are undertaking a comprehensive efficiency programme to realise approximately $125m in annual savings for reinvestment to drive growth.
"This builds on our ongoing work to relentlessly manage costs, which has led to significant margin growth in recent years.
"We remain positive in the outlook for the year ahead and we are confident that our ambitious plans will deliver a meaningful change in IHG's growth and drive industry-leading net rooms growth over the medium term."
Picture courtesy of ICH