The promise of a juicy $500m special dividend at Holiday Inn owner InterContinental Hotels (IHG) is not enough to stop the shares falling 5.4% to £39.87 as growth has slowed in the third quarter to 30 September.
Revenue per available room (RevPAR) growth has declined from 3.7% in its second quarter to 2.7%.
InterContinental’s biggest driver of profits and sales is the Americas region. The third quarter period last year was helped by an increase in customers seeking shelter during a nasty hurricane season.
Investors should therefore not be surprised the Americas suffered slower growth and mid-single digital occupancy decline this time around, given the tough comparative figures to beat.
RevPAR, which offers insights to room rates, occupancy and how much hotels can charge, was flat in the third quarter for the region.
Despite slower RevPAR growth in Europe, Middle East, Asia and Africa at 2.5% compared to 3% in the prior quarter, there are some bright spots.
Excited football fans flocking to Russia for the World Cup helped drive double-digit growth in RevPAR, while France enjoyed a 9.8% rise in growth during the quarter period.
In the UK, fewer people staying in InterContinental’s hotels outside of London offset demand from visitors enjoying events in the Capital with RevPAR up 1.1%.
