BUZZ-InterContinental Hotels: bottom of FTSE 100 after strategic review

** InterContinental Hotels (Frankfurt: IC1F.F - news) down 4.5 pct after saying it will not pay out any additional capital to investors in 2018

** IHG plans to launch an upscale brand in 2018 and to target a return of about $125 mln in annual savings by 2020, it says

** IHG says it will expand its franchise offer for Greater China, change the operating model for Kimpton Hotels & Restaurants and combine its Middle East, Asia and Africa as well as Europe operations

** "The company has not announced a special dividend (we have $400m in our forecasts structured as a buyback), choosing to invest $200m in a restructuring to accelerate its rooms growth rate to industry leading levels (about 5.5-6.5%), a clear mark of the new CEO" - Morgan Stanley (Xetra: 885836 - news)

** "See modest downside to FY18 forecasts given guidance for higher Americas costs this year and the lack of buyback" - MS

** Top loser on FTSE 100

** Group reports a 7 pct rise in 2017 operating profit to $759 mln, above $752.1 mln analysts' forecast provided by IHG (harish.bhaskar.thomsonreuters.com@reuters.net)