IHG(US:IHG)2024-02-20 15:44Financial Data and Key Metrics Changes - Earnings per share increased by 33% to $375.7, benefiting from share buyback programs [6][12] - Revenue reached $2.2 billion, representing a 17% growth compared to 2022, while operating profit was $1 billion, up 23% [33] - Free cash flow totaled $819 million, with adjusted earnings converting 129% into free cash flow [29] Business Line Data and Key Metrics Changes - RevPAR improved significantly, up 16% versus 2022 and 11% versus 2019, with Q4 RevPAR up 8% year-on-year [12][21] - Fee margin improved by 340 basis points to 59.3%, contributing to operating profit growth [15][36] - System growth was 5.3% gross and 3.8% net, with 275 hotels added to the system [3][38] Market Data and Key Metrics Changes - In the Americas, RevPAR was up 7% versus 2022 and 13% versus 2019, with occupancy up 1.5 percentage points [21] - EMEAA region saw RevPAR up 23.7% versus 2022 and 15.4% versus 2019, with occupancy improving by 7.9 percentage points [23] - Greater China experienced a RevPAR increase of 71.7% year-on-year, exceeding pre-pandemic levels [44] Company Strategy and Development Direction - The company announced a new $800 million buyback program for 2024, emphasizing its commitment to returning capital to shareholders [4][50] - The overall pipeline increased by 6% year-on-year to nearly 300,000 rooms, indicating strong future growth potential [31] - The company aims for annual fee margin accretion of 100 to 150 basis points, targeting EBIT growth of around 10% [54] Management's Comments on Operating Environment and Future Outlook - Management highlighted the attractive industry dynamics driven by GDP growth, rising middle class, and increasing travel demand [61] - The company expects to exceed $1 billion returned to shareholders in 2024, reflecting strong cash generation capabilities [62] - The outlook for 2024 includes expectations for net system growth of around 4% and continued recovery in demand across regions [20][52] Other Important Information - The company completed a $750 million share buyback program in 2023, reducing the share count by 6.1% [49] - Adjusted interest expense is expected to rise to between $155 million and $170 million for 2024 due to higher net debt [51] - Maintenance CapEx was $38 million, consistent with prior spending levels [28] Q&A Session Summary Question: What are the expectations for future growth? - The company anticipates a compound growth in earnings per share of 12% to 15% annually over the medium to long term, driven by fee revenue growth and net system growth [55] Question: How is the company addressing capital allocation? - The company remains focused on long-term growth investments while also aiming to sustainably grow ordinary dividends [48]