InterContinental Hotels profits drop but reports best half for signings in six years
InterContinental Hotels Group (IHG) has reported a drop in profit before tax of 18.4 per cent for the six months ended June 30.
Falling profits for the world's largest hotelier were largely expected due to a number of one-off factors, including the falling profit from asset disposals.
IHG was able to report its best half for signings (future deals signed) in six years, which the group believes underpins future growth prospects.
Richard Solomons, chief executive of IHG, said: "We have had our best half for signings4 in six years, underpinning our future growth prospects and demonstrating owners' preference for our brands. Openings included the first two EVEN Hotels in the US, a major milestone for this new brand, which satisfies a previously unmet guest need in the wellness segment."
It has also come to light that IHG could become the latest target of a tax inversion deal after activist investor Marcato Capital confirmed yesterday it has hired investment bankers to explore options for the group.
The San Francisco-based fund, which owns a 3.8 per cent stake in IHG, said it has retained Houlihan Lokey “to conduct a full strategic review for enhancing shareholder value” at the hotelier.
It is now thought to be looking to attract interest from US companies that could take advantage of IHG’s lower UK corporation tax rate through a so-called tax inversion deal.
“The review will focus on various alternatives including, but not limited to, improving capital structure and/or capital allocation and strategic transactions,” the firm said in a statement.