With a 7 per cent rise in operating profit to $759m (£543m) and a double-digit dividend hike, there was little for shareholders to complain about in InterContinental Hotels’ (IHG) full-year results. But proposed investments to speed up growth mean they won't be receiving any surplus capital through one-off payments or share buybacks in 2018 – the shares duly headed south.
Management targets $125m in annual savings by 2020, “for reinvestment to drive growth”, part of a wider review which will see InterContinental prioritise digital innovation, strengthen its loyalty programme and grow its new mainstream brand – avid hotels.