IHG's Group Quarterly RevPAR Up 12.8% Over 2019
Skift Take
- IHG reported strong earnings, including a 10.5% increase in Group RevPAR, but disappointed shareholders by deferring capital returns.
- The US group business is rebounding well, with top markets nearly fully recovered to 2019 levels. Prominent cities like Austin, Nashville, and Denver exceeded 2019 figures.
- Various hotel developments and acquisitions are ongoing in different locations, reflecting the industry's resilience and growth prospects. Notably, TMGOC Ventures secured approval to introduce the first Ritz-Carlton in Savannah.
The DJIA ended Friday down 287 points while the Nasdaq was down 202, the S&P 500 was down 54 points, and the 10-year treasury yield was down .06 to 4.92%. Lodging stocks were lower. SOHO and VCSA traded down to new lows, with VCSA down another -7%. SLNA fell -6%.
IHG kicked off the hotel earnings season, and while the results were good, with IHG focusing on Group RevPAR being up 10.5% versus 2022 and 12.8% versus 2019, along with 50 hotels and nearly 8,000 rooms opening in the quarter, they didn’t give the shareholders what they wanted with more capital returns. IHG said they would be reviewing additional capital returns in 2024, and by the end of 2023, they should have returned up to $1 billion to shareholders with buybacks and dividend payments. Still, analysts said they were disappointed they didn’t have anything ready with this report.
Knowland and Amadeus presented the metrics from the
