Intercontinental Hotels Group - betting big on a better world
By Chris Bailey | Friday 19 October 2018
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
I have never actually written about Intercontinental Hotels Group (IHG) but I note the shares are down over 7% as I write. The company - best known for its Crowne Plaza and Holiday Inn brands - said in an update today that 'the fundamentals for our industry remain strong. We are confident in the outlook for the remainder of the year and in our ability to deliver industry-leading net rooms growth over the medium term'. And to show this optimism it even announced a $500 million special dividend, equivalent to 5% of the current market cap. Not too shabby for a share that already yields 2.5%. Fair enough and with Q3 YTD RevPAR (revenue per average room) up 2.7% at least the numbers are moving forward too. So why the big fall?
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