by Donald Wood
Last updated: 10:27 AM ET, Tue February 21, 2023
IHG Hotels & Resorts announced its full-year 2022 financial results, including improvements in revenue, operating profit and net system growth.
The hotel giant reported sequential improvement each quarter in global RevPAR compared to 2019, with RevPAR in the Americas increasing by 3.3 percent over pre-pandemic totals. Fourth-quarter RevPAR totals were up nine percent year-over-year.
IHG revealed that average daily rates were up 18 percent compared to 2021 and eight percent over 2019 totals, with occupancy up nine percent year-over-year and down seven percent from pre-pandemic numbers.
"In 2022, we saw demand return strongly in most of our markets, pushing Group RevPAR back close to 2019 levels and fee margin ahead," IHG CEO Keith Barr said. "It's particularly pleasing that in the second half of the year we exceeded 2019 levels for both RevPAR and profitability."
Gross system growth increased by 5.6 percent, with adjusted net system size growth of 4.3 percent compared to last year. IHG also added over 49,000 rooms (269 hotels) and signed more than 80,000 rooms (467 hotels), an improvement of 3.9 percent year-over-year.
The company's Iberostar Beachfront Resorts agreement added over 12,000 rooms to the system in December 2022, giving IHG officials the confidence to explore further opportunities with exclusive partners to drive growth.
"In total, we signed 467 hotels in 2022 and opened 269, which led to net system growth of over 4 percent," Barr continued. "The further 1,800 hotels in our pipeline represents future growth of over 30 percent of today's system size. The Holiday Inn Brand Family, with its global leadership position, delivered around a third of our hotel signings and half of openings."
Operating profit from reportable segments reached $828 million and reported operating profit topped $628 million. Net cash from operating activities improved to $646 million from $636 million in 2021, while adjusted EBITDA reached $896 million.
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