InterContinental Hotels Group to return more cash to shareholders

InterContinental Hotels Group (IHG) is to return a further £850m to shareholders after announcing today that 2006 was a “successful year on all fronts”.

The group's results for the year showed a pre-tax profit of £247m, down from £284m in 2005, on turnover from continuing operations of £805m, up from £713m.

Operating profit was £258m, down from £317m a year ago.

IHG said it would pay out £700m in the second quarter of 2007 as a special dividend and a further £150m in a share buyback, which is yet to commence.

The latest return to shareholders takes total returns to £3.6b since March 2004.

Chief executive Andrew Cosslett said that in 2006 the group outperformed the market and saw a record level of signings for IHG brands.

“We now expect to exceed our growth target of adding 50,000-60,000 rooms on a net and organic basis by the end of 2008,” he added.

Cosslett said IHG has made a good start to 2007 with the opening of InterContinental Los Angeles and the signing of the group's 125th hotel in China, the Crowne Plaza Sun Palace Beijing.

InterContinental's shareholders expected to get £800m >>

InterContinental enjoys strong first half >>

InterContinental remains on target to add 10,000 rooms in 2006 >>

By Daniel Thomas

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