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.

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

Holiday Inn owner IHG reported 3% growth in its annual room revenue on Tuesday, above market expectations, boosted by a pick-up in demand in the United States. Analysts on average had expected revenue per available room (RevPAR),