InterContinental Hotels - booking great profits

Tuesday, 7th August 2018 09:27 - by Rajan Dhall

The hotel company have pulled one out of the bag here with another great report. CEO Keith Barr stated '"We've had a strong first half, delivering our best signings performance for a decade. RevPAR grew at 3.7%, which together with 4.1% net system size growth, drove underlying operating profit up 8% and underlying EPS up 25%.  This underpins our decision to raise the interim dividend by 10%.'

H1 Adjusted EPS $1.42 vs prev $1.14 y/y

Adj Operating profit $398M vs prev $370M y/y

Revenue $875M vs prev $838M y/y

''The fundamentals for our industry are strong, we are confident in the outlook for the balance of the year and in our ability to deliver industry-leading net rooms growth over the medium term."

Looking at the daily chart below its hard to see why we would not test the highs at some point again. The company is moving from strength to strength and from a technical standpoint, the uptrend remains fully intact. Recently, however, the stock made a lower high and took a heavy fall. Since we have recovered to test the 4796p resistance which could give us a few problems today.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.