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InterContinental Hotels Group will return over $1billion to investors after a record year of hotel openings.
The hotels giant behind Holiday Inn announced a $950million share buyback and will pay out $270million in dividends.
Following today's update, IHG will have returned more than $5billion to shareholders in a five year period.
The firm's board announced a final dividend of 125.9 cents, taking the annual payout to 184.5 cents. It marks the fourth consecutive year of the group increasing the dividend by at least 10 per cent.
It came as IHG’s total revenue rose 7 per cent to $2.5billion, while operating profit jumped 13 per cent to $1.3billion (£x).
Revenue from fees for managing and franchising brands such as InterContinental and Holiday Inn came in at $1.2billion.
Chief executive Elie Maalouf said the opening of a record number of hotels and the firm's strong financial performance was delivered 'in the face of some turbulent trading conditions'.
Dividend hike: InterContinental Hotels Group has hiked its dividend and announced another $950m share buyback
Approximately 443 hotels were opened in the past year, adding 65,100 rooms, as the FTSE 100-listed group signed a further 694 hotels to increase its estate to 6,963 hotels worldwide, with a pipeline of 2,292 more.
The group said it was ploughing ahead with expansion plans in Greater China, adding that in the past year it saw the 'highest ever hotel openings and signings' in Greater China.
Growth was strongest in Europe, the Middle East, Asia and Africa, where revenue per available room rose 4.6 per cent, while the Americas edged up 0.3 per cent and Greater China fell 1.6 per cent.
Global revenue per available room in the fourth quarter edged up 1.6 per cent, and the group's key Americas saw revenue per available room fall as US travel demand eased.
Looking ahead, the group said: 'Supported by attractive long-term industry demand drivers and our proven ability to capitalise on our scale and diverse fee streams across segments and geographies, we enter 2026 with confidence.'
IHG shares rose 2.29 per cent to 148.10p on Tuesday nearing an all-time high.
Adam Vettese, a market analyst at eToro, said: 'Shares have opened strongly this morning but having already rallied close to 25 per cent in the last six months.
'As such, the scope for further gains may now depend on management hitting its ambitious medium term growth targets.'
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