InterContinental Jumps After $750 Million Dividend: London Mover
The world’s largest provider of hotel accommodation rose 8.2 percent to 2,190 pence in London trading, the biggest gain since August 2011. It’s also the highest price since InterContinental first sold shares to the public in 2003.
InterContinental, the owner of the Holiday Inn and Crowne Plaza brands, said today it will pay the dividend after selling the Mark Hopkins San Francisco and an 80 percent stake in the New York Barclay for about $394 million in March. Revenue per available room, a measure of occupancy and rates known as revpar, increased by 6 percent from a year earlier, the Denham, England-based company said in a statement today. That compares with a 4.8 percent average gain in a survey of nine analysts.
InterContinental has been divesting properties over the past 10 years as it focuses on operating hotels rather than owning them. The company said it has distributed $10.3 billion to shareholders since 2003.
“Current trading trends give us confidence for the rest of the year and our strategy for high quality growth positions us well for continuing outperformance, in an industry with compelling long-term growth prospects,” Chief Executive Officer Richard Solomons said in the statement.
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