Shares in global hotels operator Intercontinental Hotels (IHG) have put in a stellar performance since the onset of the pandemic, gaining 175% since March 2020.

Over the last 12 months the shares have continued to notch-up new highs and are up around a third compared with a 2% drop in the FTSE 100.

Stronger than expected trading has been a key driver with consensus analyst earnings forecasts rising close to double digits over the last year according to Refinitiv data.

At the third quarter trading update (20 October) the Holiday Inn hotels operator said travel demand remained healthy.

RevPar (Revenue per available room) increased 10% compared with 2022 which marked the fifth quarter of sequential improvement exceeding pre-pandemic highs.

The company highlighted strong room occupancy levels across the group of 72%, around one percentage point behind 2019 which further confirms the ‘near complete’ return to pre-Covid levels of demand.

After announcing a $750 million share buyback in February 2023 which is largely completed, IHG will have returned $1 billion to shareholders in the year including dividends.

It is equivalent to 10% of IHG’s market capitalisation at the start of 2023. Full year results are expected to be announced on 20 February.

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