InterContinental gets a warm welcome on special dividend

Investors checked into InterContinental Hotels Group earlier, after the Holiday Inn owner raised its dividend and said tourists flocking to London has helped to boost sales.

The hotels giant pleased the City with plans to pay out $400 million (£320 million) via a special dividend, sending shares to record highs, up 61p to 3939p.

IHG, behind 5174 hotels worldwide, saw global revenue per room increase 1.8% last year.

Finance boss Paul Edgecliffe-Johnson said November and December UK bookings contributed to that growth.

He added: “We are seeing more business from tourists, particularly from the Middle East, and London was very strong.

“I don’t think it’s unreasonable to put [tourists being keen to visit Britain] down to the weaker pound since the Brexit vote.”

The firm, which is also behind the Crowne Plaza brand, plans to open eight more hotels in the capital within four years.

Pre-tax profit dropped to $591 million from $1.4 billion owing to sales of some hotels. But underlying profit — which strips out property sales and currency movements — was up 9.5%.