Proactive Investors - Holiday Inn owner InterContinental Hotels Group PLC reported a global revenue per available room (RevPAR) increase of 2.6% year-over-year, led by a strong performance in the EMEA region.
The company has also progressed in its $800 million share buyback program, with $239 million completed so far under a broader plan to return over $1 billion to shareholders in 2024 through buybacks and dividends.
Operationally, IHG (LON:IHG) opened 6,300 rooms across 46 hotels during the quarter and expanded its room signing by 7%, strengthening its global pipeline.
A new agreement in Germany will significantly increase IHG's presence, adding up to 17,700 rooms or a 1.9% increase to its global system.
Announced by IHG and NOVUM Hospitality in April, the long-term agreement will see 108 open hotels and 11 hotels under development join IHG's system between 2024 and 2028.
IHG said it will be lowering the contributions made by franchisees into the System Fund, which is used to maintain and improve systems crucial for the global operation of IHG hotels, including marketing efforts, booking systems, and loyalty programs, among others.
The revised structure is expected to add $25 million to top-line revenues in 2024.
Shares opened a percentage point lower on Friday.