InterContinental Hotels Group (IHG) announced Tuesday there had been ‘no material change’ in trading conditions since its last advice, which was issued alongside its FYs on 10 March 2005.
At that time, IHG reported an encouraging performance by hotels in the US, Middle East and China, together with strong growth in revenue per available room (revPAR) in the UK, particularly in London, driven by the corporate sector. However, it added that weakness continued in some other European markets, including France and the Benelux countries.
In a statement yesterday, IHG said it believed there had been no material change in the broad trend of current trading since 10 March, and that the full year outlook for the group’s trading remained in line with its expectations.
The latest trading update was issued as part of a circular to shareholders giving details of IHG’s proposal to return £1bn to them following the sale of 73 hotels in the UK, which is expected to complete by the end of this month.
In the circular, the board said it was seeking shareholder approval for a new listed parent company – New InterContinental Hotels Group plc (‘New IHG’) – and for the return of the capital by way of a scheme of arrangement. The scheme would entail shareholders receiving 11 New IHG ordinary shares in exchange for every 15 IHG ordinary shares, in addition to £1.65 in cash for each existing ordinary share held.
The board added that the creation of New IHG was purely a structural change necessary to implement the proposal, and that the management and business of the group would not alter as a result. If shareholders approve the scheme, New IHG will subsequently adopt the name ‘InterContinental Hotels Group plc’. The group’s AGM and EGM to discuss the proposal will be held on 1 June 2005.