Holiday Inn owner IHG sweetens shareholder returns on travel rebound

A general view of an Intercontinental Hotel in London, Britain October 20, 2020. REUTERS/Matthew Childs/File Photo

Aug 9 (Reuters) – Holiday Inn owner IHG (IHG.L) on Tuesday announced a share buyback programme of $500 million and resumed interim dividend, after its half-year profit more than doubled on the back of a steady recovery in post-pandemic travel.

The group said its second-quarter revenue per available room (RevPAR) for the Americas, its largest segment, was 3.5% above pre-pandemic levels.

Hotel operators have benefited as people spend more on travel and book longer hotel stays, lifting occupancy rates and prices, although they face risks from stubborn inflation and cost-of-living woes worldwide.

The company said its operating profit for the six-month period ended June 30 rose to $361 million, compared with $138 million last year.

Reporting by Muhammed Husain in Bengaluru; Editing by Sherry Jacob-Phillips

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