InterContinental Hotels Group PLC said Tuesday that it will launch a share-buyback program of up to $500 million as it reported a rise in net profit for the first half on increased revenue.
Pretax profit for the period was $299 million, compared with $67 million the year before, it said.
First-half operating profit was $361 million, compared with $138 million the year before, it said.
Revenue was $1.79 billion compared with $1.18 billion in the year-prior period. The company said that although revenue rose in the Americas and in the region covering Europe, the Middle East, Africa and Asia, in China it fell to $36 million from $59 million because of the effect of localized travel restrictions for most of the period.
Revenue per available room–an important industry metric–was up 51% on year as travel demand increased across most of its markets, the company said.
InterContinental said it is resuming dividend payments, with the board proposing an interim dividend of 43.9 cents, a 10% increase from the prior interim payment in 2019.
“Whilst the economic outlook faces uncertainties as central banks and governments take action to manage inflation, we remain confident in our business model and the attractive industry fundamentals that will drive long-term sustainable growth,” the company said.
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