by Lacey Pfalz
Last updated: 9:30 AM ET, Tue February 20, 2024
Record growth and popularity across the hotel giant’s many brands have boosted IHG’s 2023 full-year financial results over pre-pandemic levels, driving the company to announce it would return $1 billion to shareholders in 2024.
The full-year financial results are full of year-over-year growth: revenue increased 17 percent to $2.16 billion, revenue from fee business rose 17 percent to $1.67 billion and operating profit rose 23 percent to $1.02 billion.
RevPAR, or revenue per available room, is a key hotel metric. Global RevPAR for IHG rose over 16 percent from 2022 and nearly 11 percent from 2019. China saw the greatest regional growth year over year in RevPAR, with a 71.7 percent increase due to the pandemic-era travel restrictions still in place during 2022.
The average daily rate rose 5 percent from 2022 and 13 percent from 2019, while occupancy was up 6 percent from 2022 and 1 percent lower than in 2019, showcasing how higher pricing and continuing demand have aided many of the hotel giants to report record revenue.
“Alongside strong trading and financial performances, we continued to grow our portfolio and the global footprint of our brands,” said Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts. “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," Maalouf continued.
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