The business - which operates brands including Holiday Inn, InterContinental and Crowne Plaza - will distribute a special dividend and share consolidation of $400 million to investors as a demonstration of its success.
Its annual dividend will rise 11% to $0.94 per share.
While annual revenue was down 4.9% year-on-year to $1.72 billion, IHG saw revenue available per room (Revpar) up by 1.8%.
Richard Solomons, IHG chief executive, said: "Our results clearly demonstrate our strong operational performance and the success of IHG’s long-term strategy.
