IHG's Unexpected Share Buyback
Skift Take
- Lodging stocks were lower: There was only one mover of note, SLNA with a -6% drop getting near an all-time low today, but there was a sea of red on the screen today.
- DiamondRock Hospitality reported a solid 4Q. DRH had given preliminary results in January but still beat expectations even with comparable RevPAR below consensus as margins made up the difference.
- IHG reported a good quarter but the highlight was the announcement of a $750 million share buyback for 2023
The DJIA fell 697 points, Nasdaq was down 295, the S&P 500 was down 82 and the 10-year treasury yield may soon see 4%, up another .13 to 3.96%. Lodging stocks were lower. There was only one mover of note, SLNA with a -6% drop getting near an all-time low today, but there was a sea of red on the screen today.
DiamondRock Hospitality reported a solid 4Q. DRH had given preliminary results in January but still beat expectations even with comparable RevPAR below consensus as margins made up the difference. DRH did not give forward guidance except that they would be spending $100 million to $115 million on capex this year.
IHG reported a good quarter but the highlight was the announcement of a $750 million share buyback for 2023, bigger than analysts expected. IHG said RevPAR in the Americas was up 17% in the fourth quarter year over year and up 9% over 4Q2019.
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