LONDON (ShareCast) - Since the company decided to sell its estate of hotels to concentrate on managing them InterContinental Hotels Group (IHG) has returned 9 billion dollars to shareholders. The idea was that a hotels manager did not actually need to own the property. The above numbers suggest that was right. But the well is about to run dry. IHG has two more properties going through the sale process, on London’s Park Lane and in New York, this last delayed when a buyer dropped out.

IHG’s figures yesterday nevertheless suggest that the group is moving ahead on all the relevant metrics. Revenues per room were up 5.2 per cent, both the United States and China doing better than the average despite some fourth-quarter underperformance in the latter because of the change of leadership in Beijing and a dispute with Japan. The positive trends continued into January, although there was an extra kick-up in China from the timing of the New Year. Long-term prospects, in terms of the growth of emerging markets, are there. But until financing comes back into the global hotel market, growth in net rooms will be constrained at 2 to 3 per cent a year. On just under 20 times’ this year’s earnings, the shares look up with events. Hold, says The Times’s Tempus.

While the latest data showed the European car market continued to suffer in January, the UK-focused dealership Pendragon was reaping the benefits of a stronger market in Britain. Pendragon further signalled confidence with a return to dividend payments, albeit at a low level of 0.1p a share for the final dividend, to be paid following the annual meeting in May.

There is every reason to suggest that trend will continue in the near term. UK trade body the Society of Motor Manufacturers and Traders is forecasting registrations will grow by 0.6% this year to 2.057m vehicles, and by 2.6m to 2.11m vehicles in 2014. Given 2013 got off to a strong start, with registrations up 11.5% in January - traditionally the third strongest month - the forecast for this year could well prove conservative, although it is still early days and the economic backdrop remains weak, The Telegraph’s Questor team says.

Basic industrial group Brammer’s figures for 2012 suggest that Britain is doing well enough, with sales per working day up 7.6%. Germany and Spain are flat, a good enough performance in the latter given the state of the economy, and Eastern Europe is weak. Profits before tax were 19% higher at £34.5m, helped by the purchase of the Bucks & Hickman business from Travis Perkins in late 2011. The total dividend is up a healthy 12% at 9.4p. The shares, up 7p at 348p, have advanced by 45% since November. They sell on almost 15 times’ this year’s earnings. The low market share suggests plenty to go for but, as a proxy of European economic trends, they look high enough for now, Tempus believes.

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AB

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