The FTSE-100 hotel chain said Friday that details of the next capital allocation will be released in February along with its 2023 full-year results, depending on economic conditions and the business outlook at that time.

“The highly cash-generative nature of our business model means we expect to have significant ongoing capacity to return further surplus capital to shareholders, both in the ordinary course and as we look to move leverage into our target range over time,” it said.

IHG said it is on track to return $1 billion to shareholders in 2023 via share buybacks and dividend payments.

The company said 3Q revenue per available room, or RevPar–a key industry metric–rose 10.5% on year and was up 13% against the 2019 comparable period. The increase represented the fifth quarter in a row that the sequential growth rate outstripped prepandemic highs.

IHG said RevPar in greater China rose 43% from 2022 and was up 9.3% compared with the same period in 2019, with occupancy rising 67% and up 2.3 percentage points from 2019. Tier 1, or highly developed, cities saw a 3% fall in RevPar compared with 2019, a reflection of the more gradual return of international travel, the company said. Tier 2 to 4 cities saw a stronger performance and were up 13%, it added.

The group’s average daily rate for the period was 4.1% higher than 2022, and 15% higher than in 2019.

Occupancy was 4.1 percentage points higher than in 2022 but 1.3 percentage points lower than in the same period in 2019. Group-wide occupancy was one percentage point behind 2019 at 72%, confirming a near-complete return to prepandemic demand levels, IHG said.

“We’re confident in the strengths of IHG’s business model, scale and in our strategic priorities to capture sustainable, profitable growth,” the company said.

Write to Anthony O. Goriainoff at [email protected]