Shares in Holiday Inn owner InterContinental Hotels Group (LON:IHG) fell over 4 percent on Tuesday morning, despite posting a set of positive preliminary results for the year to December 2017.
The group reported a 7 percent rise in operating profits for 2017, bringing the total to $759 million. Revenue grew 4 percent to $1.78 billion, with its annual dividend climbing 11 percent to 104 cents per share. Adjusted earnings per share up 20 percent to 244.6 cents.
However, looking to the year ahead the company gave a less positive outlook. The group said it expects the negative impact from the financial incentives provided to hotel owners that successfully implement the new brand hallmarks to have a total $7 million impact in 2018, as well as recognising a $4 million payroll tax credit that was delayed from 2017.
“We do not expect our US healthcare programme to be in a surplus position again in 2018, which will result in a $5m increase to regional costs year on year”, the group added.
Looking ahead, Keith Barr, chief executive of IHG said, “We remain positive in the outlook for the year ahead and we are confident that our ambitious plans will deliver a meaningful change in IHG’s growth.”
Shares in IHG are currently trading down 4.62 percent at 4,480.00 (0909GMT).
