Holiday Inn owner IHG announced a $900 million share buyback plan on Tuesday which fell short of some investors' estimates, sending its stock around 5% lower despite the hotel operator's better than expected annual room revenue.

It came as InterContinental Hotels Group revealed that operating profits grew by 10% as it benefited from more hotel openings.

Holiday Inn owner InterContinental Hotels Group (IHG) has snapped up another hotel brand as it reported stronger profits.