ICHGF 6-K
Intercontinental Hotels Group PLC /New/ (IHG)
6-K
2026-02-17
For: 2026-02-17
View Original
Added on
July 04, 2026
SECURITIES
AND EXCHANGE COMMISSION
Washington
DC 20549
FORM 6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 AND 15d-16
OF
THE
SECURITIES EXCHANGE ACT OF 1934
For 17
February 2026
InterContinental Hotels Group PLC
(Registrant's
name)
1
Windsor Dials, Arthur Road, Windsor, SL4 1RS, United
Kingdom
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form
20-F
Form 40-F
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EXHIBIT
INDEX
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99.1
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Final
Results dated 17 February 2026
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|
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Exhibit
No: 99.1
InterContinental Hotels Group PLC
Full Year Results to 31 December 2025
17 February 2026
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Strong performance with operating profit from reportable
segments1 +13% and
Adjusted EPS1 +16%;
|
|
record hotel openings; $1.1bn+ shareholder returns; confident in
long-term growth drivers
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12 months ended 31 December
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2025
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2024
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% change
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Underlying1
% change
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Results from reportable
segments1:
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|
|
|
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Revenue1
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$2,468m
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$2,312m
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+7%
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+6%
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Revenue from fee business1
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$1,897m
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$1,774m
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+7%
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+6%
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Operating profit1
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$1,265m
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$1,124m
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+13%
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+12%
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Fee margin1
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64.8%
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61.2%
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+3.6%pts
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Adjusted EPS1
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501.3¢
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432.4¢
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+16%
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IFRS results:
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Total revenue
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$5,189m
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$4,923m
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+5%
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Operating profit
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$1,198m
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$1,041m
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+15%
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||
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Basic EPS
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490.9¢
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389.6¢
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+26%
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||
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Total dividend per share
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184.5¢
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167.6¢
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+10%
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Net debt1
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$3,333m
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$2,782m
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+20%
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1.
Definitions for non-GAAP measures can be found in the 'Key
performance measures and non-GAAP measures' section, along with
reconciliations of these measures to the most directly comparable
line items within the Financial Statements.
Trading and revenue
● Global
RevPAR1 +1.5%,
with Americas +0.3%, EMEAA +4.6% and Greater China
-1.6%
●
Average daily rate +0.8%, occupancy +0.5%pts
● Total gross
revenue1 $35.2bn,
+5%
System size and pipeline
●
Gross system growth +6.6% and net system growth of +4.7% adjusting
for the impact of removing rooms previously affiliated with The
Venetian Resort Las Vegas (net growth of +4.0% on a reported
basis)
●
Opened 65.1k rooms, up +10% YOY, across a record 443
hotels
●
Global estate of 1,026k rooms (6,963 hotels)
●
Signed 102.1k rooms (694 hotels), up +9% YOY excluding Ruby
acquisition in 2025 and NOVUM signings in 2024
●
Global pipeline of 340k rooms (2,292 hotels), up +4% YOY, and
represents 33% of current system size
Margin and profit
● Fee
margin1 64.8%,
up +3.6%pts, driven by positive operating leverage and step-ups in
ancillary fee streams
● Operating profit from
reportable segments1 of
$1,265m, up +13%, including a $1m favourable currency
benefit
●
IFRS operating profit of $1,198m includes System Fund and
reimbursables $46m loss (2024: $83m loss) and $21m exceptional
costs (2024: $nil)
● Adjusted
EPS1 of
501.3¢, up +16%, includes adjusted interest
expense1 of
$200m (2024: $165m), an adjusted tax1 rate
of 27% (2024: 27%) and a 4.2% reduction in the basic weighted
average number of ordinary shares
Cash flow and net debt
● Net cash from operating
activities of $898m (2024: $724m) and adjusted free cash
flow1 of
$893m (2024: $655m), driven by higher profit and lower outflows
related to capital expenditure, tax and the System
Fund
● Net
debt1 increase
of $551m, driven by $1.1bn+ of shareholder returns through dividend
payments and share buybacks; $120m acquisition spend; $69m foreign
exchange adverse impact on net debt
● Adjusted
EBITDA1 of
$1,332m, +12% YOY; net debt:adjusted EBITDA ratio of
2.5x
Shareholder returns
●
$900m share buyback and $270m of ordinary dividends paid to
shareholders in 2025
●
Final dividend of 125.9¢ proposed, +10%, resulting in a total
dividend for the year of 184.5¢, +10%
●
New $950m buyback programme launched, which together with ordinary
dividend payments is expected to return $1.2bn+ to shareholders in
2026, resulting in cumulative returns of more than $5bn over 5
years
Strong delivery on our clear framework to drive value creation, as
set out at the start of 2024
●
Targeting compound growth in adjusted EPS of +12-15% annually on
average over the medium to long term
●
Strong further progress in 2025 on growing our brands, expanding
key geographic markets, developing our leading technology and
enterprise platform, driving ancillary fee streams, and returning
surplus capital to shareholders
●
New premium brand - Noted Collection - launched today, and
acquisition of urban lifestyle brand - Ruby - are two of many
achievements to further strengthen our portfolio and growth
potential
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Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts,
said:
|
"Thanks to the hard work of our teams we delivered excellent
financial performance in 2025 and in the face of some turbulent
trading conditions. There was also further progress on our clear
strategy to unlock IHG's full potential for all stakeholders. We
accelerated the growth of our brands, expanded in key markets,
strengthened hotel owner returns, drove ancillary fee streams,
delivered cost efficiencies and returned surplus capital to
shareholders. Collectively, this powered adjusted EPS growth of
+16%.
We opened a record 443 hotels in the year and added another 694
into our pipeline, including
the highest ever hotel openings and signings in Greater China, as
owner demand for our brands continues to increase
globally. With
over 6,900 open hotels around the world, as we look to the future,
our pipeline of a further 2,300 properties is equivalent to
system growth
of +33%.
We are delighted to launch today our new brand - Noted
Collection - in the large and fast-growing premium
segment, which I am confident will build on the well-established
successes already achieved with our other collection and conversion
brands - Vignette, voco and Garner. The launch of Noted Collection
follows the acquisition in 2025 of the Ruby brand, which further
enriches our Premium portfolio with an exciting, distinct and
high-quality offer for both guests and owners in popular city
destinations. Ruby signings are growing and this year we have
already successfully taken the brand into the US
market.
We constantly invest in our powerful enterprise to make sure IHG
delivers for guests and owners, including improving and growing our
brands and overall portfolio, driving increased loyalty
contribution, and rolling out leading technology. Our cash
generation and strong balance sheet support our investments to
drive growth, and we continue to sustainably increase our ordinary
dividend as well as regularly return surplus capital through share
buybacks. The Board is pleased to propose a fourth consecutive year
of increasing the dividend by +10% and the launch of a new $950m
share buyback programme. Cumulatively over five years, this will
mean IHG has returned more than $5bn to our shareholders. Supported
by attractive long-term industry demand drivers and our proven
ability to capitalise on our scale and diverse fee streams across
segments and geographies, we enter 2026 with
confidence."
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For further information, please contact:
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Investor
Relations:
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Stuart
Ford (+44 (0)7823 828 739); Kate Carpenter (+44 (0)7825 655
702);
Joe
Simpson (+44 (0)7976 862 072)
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Media
Relations:
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Neil
Maidment (+44 (0)7970 668 250); Mike Ward (+44 (0)7795 257
407)
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Presentation for analysts and institutional
shareholders:
A pre-recorded webcast presented by Elie Maalouf, Chief Executive
Officer, and Michael Glover, Chief Financial Officer, will be
available from 7:00am (London time) today, 17 February 2026,
at www.ihgplc.com/en/investors/results-and-presentations.
This same website link also provides access to the full release and
supplementary information pack covering RevPAR, system size and
pipeline data.
A live Q&A session will be hosted later this morning at 9:30am
(London time). This can be listened to via www.ihgplc.com/en/investors/results-and-presentations (pre-registration
required). Analysts and institutional investors wishing to ask
questions are required to register at the IHG Hotels &
Resorts Full Year 2025 Results Live Q&A Registration
Page (https://registrations.events/direct/LON45116971000000). Dial-in
details for the Q&A are provided when you register and will
appear in the calendar invite sent to you following
registration.
An archived replay including the Q&A session is expected to be
available within 24 hours and will remain available
at www.ihgplc.com/en/investors/results-and-presentations.
About IHG Hotels & Resorts:
IHG Hotels & Resorts (tickers:
LON:IHG for Ordinary Shares, ISIN: GB00BHJYC057; NYSE:IHG for ADRs,
ISIN: US45857P8068) is a global hospitality company, with a purpose
to provide True Hospitality for Good.
With a family of 20 hotel brands and IHG One
Rewards, one of the world's
largest hotel loyalty programmes with over 160 million members, IHG
has more than one million rooms across 6,963 open hotels in over
100 countries, and a development pipeline of a further 2,300
properties.
- Luxury &
Lifestyle: Six Senses, Regent Hotels & Resorts,
InterContinental Hotels & Resorts, Vignette Collection, Kimpton
Hotels & Restaurants, Hotel Indigo
- Premium: voco hotels,
Ruby, HUALUXE Hotels & Resorts, Crowne Plaza Hotels &
Resorts, EVEN Hotels
- Essentials: Holiday
Inn Express, Holiday Inn Hotels & Resorts, Garner hotels, avid
hotels
- Suites: Atwell Suites,
Staybridge Suites, Holiday Inn Club Vacations, Candlewood
Suites
- Exclusive Partners:
Iberostar Beachfront Resorts
InterContinental Hotels Group PLC is the Group's holding company
and is incorporated and registered in England and Wales.
Approximately 400,000 people work across IHG's hotels and corporate
offices globally.
Visit us online for more about our hotels and
reservations and IHG One
Rewards. To download the IHG
One Rewards app, visit the Apple
App or Google
Play stores. For our
latest news, visit our Newsroom and
follow us on LinkedIn.
Cautionary note regarding forward-looking statements:
This announcement contains certain forward-looking statements as
defined under United States law (Section 21E of the Securities
Exchange Act of 1934) and otherwise. These forward-looking
statements can be identified by the fact that they do not relate
only to historical or current facts. Forward-looking statements
often use words such as 'anticipate', 'target', 'expect',
'estimate', 'intend', 'plan', 'goal', 'believe' or other words of
similar meaning. These statements are based on assumptions and
assessments made by InterContinental Hotels Group PLC's management
in light of their experience and their perception of historical
trends, current conditions, expected future developments and other
factors they believe to be appropriate. By their nature,
forward-looking statements are inherently predictive, speculative
and involve risk and uncertainty. There are a number of factors
that could cause actual results and developments to differ
materially from those expressed in, or implied by, such
forward-looking statements. The main factors that could affect the
business and the financial results are described in the 'Risk
Factors' section in the current InterContinental Hotels Group PLC's
Annual report and Form 20-F filed with the United States Securities
and Exchange Commission.
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Summary of recent trading and outlook
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Key trends by region and stay occasion
Reflecting the breadth of our global footprint, RevPAR grew +1.5%
(Q1 +3.3%, Q2 +0.3%, Q3 +0.1%, Q4 +1.6%).
In the Americas, despite some turbulent trading conditions, RevPAR
grew +0.3% (Q1 +3.5%, Q2 -0.5%, Q3 -0.9%, Q4 -1.4%), with occupancy
-0.1%pts and rate +0.5%. US RevPAR declined by -0.1% for the year,
with growth of +3.5% in Q1 moving to a decline of -0.9% in Q2
driven by the shift in timing of Easter between March and April and
the onset of a reduction in certain types of business and leisure
travel, such as lower international inbound demand and less
government travel. US RevPAR declined -1.6% in Q3 and -2.0% in Q4,
the most recent quarter facing a tougher year-over-year comparison
due to hurricane-related demand in 2024. Outside of the US, RevPAR
for the year grew +4.0%, with growth in each of Canada, Mexico and
our Latin America & Caribbean sub-region. Rooms revenue for the
overall region on a comparable hotel basis in 2025 was strongest
for Business bookings which were up +2% YOY, whilst Groups was down
-1% and Leisure was -2% on 2024 levels.
Looking ahead to 2026, less turbulent trading conditions in the US
and stronger demand are expected for the industry. Research and
consumer surveys point to continued prioritisation of spend on
travel, and business surveys indicate expectations for increasing
corporate travel budgets in 2026. Economic growth and investment,
stable employment, favourable tax policies and the anticipated
further easing of interest rates are all expected to support this.
Major events such as the FIFA World Cup will add additional demand,
and, particularly from Q2 2026 in the US, some comparatives become
easier given the slowdown in certain types of travel that occurred
onwards from Q2 2025.
For EMEAA, RevPAR grew +4.6%, with occupancy +1.6%pts and rate
+2.4%. Strong RevPAR growth of +5.0% in Q1 was followed by +3.0% in
Q2, in part due to fewer travel-related international events
compared to the prior year. RevPAR grew +2.8% in Q3 and then
strongly re-accelerated to +7.1% in Q4 driven broadly evenly by
increases in occupancy and rate and with good growth in each of
Business, Leisure and Groups demand drivers. By major geographic
markets, RevPAR for the year was +1.1% in the UK, +4.2% in
Continental Europe, +5.5% for the East Asia & Pacific region
and +8.8% in the Middle East. Further robust growth is expected for
this diverse region in 2026.
In Greater China, RevPAR was -1.6%, with occupancy +0.5%pts higher
and rate -2.4% lower. Q1 RevPAR of -3.5% was followed by -3.0% in
Q2, further improving sequentially to -1.8% in Q3 and then
returning to growth of +1.1% in Q4 with notable improvement in
Leisure demand. RevPAR for the year was -0.3% in Tier 1 cities and
-4.4% in Tier 2-4 cities. Looking ahead to 2026, we remain
encouraged by the breadth and strength of the region's economic
growth, and are confident in the attractive long-term secular
demand drivers which also continue to fuel record levels of
development activity for IHG.
Trends by guest stay occasion led to global rooms revenue in 2025
for Business bookings growing by +2% YOY (+1% room nights, +1%
rate) on a comparable hotel basis, Groups by +1% (flat room nights,
+1% rate), whilst Leisure was flat (with room nights and rate both
broadly flat). This builds on growth in all three stay occasions in
2024, and the recovery versus 2019 that was already fully completed
for all three stay occasions by the end of 2023.
Outlook: attractive long-term structural growth drivers for both
demand and supply
●
The World Travel and Tourism Council (WTTC) expected the industry
to have added $12tn to global GDP in 2025, growing +7% on 2024 and
surpassing 2019 by +14%.
●
Industry revenue has outpaced global economic growth in 19 out of
26 years between 2000 and 2025, with a CAGR of +4.4% (versus +2.9%
CAGR for GDP).
●
Whilst in some countries geopolitical risk and the economic outlook
present shorter-term uncertainties, overall conditions for the
global industry remain positive for continued long-term growth,
supported by stable employment markets and robust levels of
business activity and economic growth. A continued key driver over
the long term is the adoption of travel by emerging market middle
classes, a population segment forecast by Oxford Economics to
nearly double in size to over 670 million households by 2035, with
China accounting for almost half of the growth.
●
Global hotel room nights consumed returned to 2019 levels by 2023
and grew further in 2024 and 2025, according to Oxford Economics,
with a forecast CAGR of +3.6% through to 2035. The US market is
expected to increase by a +2.5% CAGR from 2.3 billion to 2.9
billion room nights over the next decade, and China to be faster at
a +4.2% CAGR, with the rest of world (excluding both the US and
China) also forecast to grow at a CAGR of +3.8%.
●
Global hotel room net new supply grew at a CAGR of +2.3% over the
decade to 2025, and was +1.1% in the US, according to STR. Their
latest forecasts for US industry net supply growth are +0.7% in
2026 and +0.9% in 2027, with growth rates increasing to over 1% in
the following three years. Industry net new supply growth is
forecast to be stronger in many emerging markets and high economic
growth countries within our EMEAA region, and in
China.
●
Over the long term, and in addition to the industry's RevPAR
growth, further new hotel supply will still be needed to satisfy
the demands of growing populations and rising middle classes, to
drive business and commerce, and to satisfy the inherent desire for
people to travel, connect in person and seek out new
experiences.
●
Global leading hotel brands are expected to continue their
long-term trend of taking market share. In periods when developers
are adding less new supply, RevPAR growth from existing room
inventory is expected to be stronger as are conversion
opportunities, which IHG has proven highly successful at
capturing.
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Summary of system size and pipeline progress
|
Openings and signings in 2025 reflect the strength of IHG's brand
portfolio and the overall enterprise platform that we provide to
hotel owners, together with the long-term attractiveness of the
markets we operate in:
●
Global system of 1,026k rooms (6,963 hotels) at 31 December
2025, weighted 66% across midscale segments and 34% across upscale
and luxury
●
Gross system growth +6.6% YOY, with 65.1k rooms across a record 443
hotels opened in 2025; room openings increased +10% YOY, or +19%
YOY excluding additions from the acquisition of Ruby (3.0k rooms in
2025) and the NOVUM conversions added to IHG's system (3.8k rooms
in 2025 and 10.2k rooms in 2024); 19.2k rooms (137 hotels) opened
in Q4
●
Removal of 26.0k rooms (109 hotels) in 2025, of which 7,092 were
previously affiliated with The Venetian; removal rate of 1.9% in
2025, adjusted to exclude the impact of The Venetian, which is a
rate temporarily above the historical and anticipated future
average underlying rate of ~1.5%
●
Net system growth of +4.7% (adjusting for The Venetian; growth of
+4.0% YOY on a reported basis)
●
Signed 102.1k rooms (694 hotels) in 2025; signings increased +9%
YOY excluding the Ruby acquisition in 2025 (5.7k rooms) and the
NOVUM Hospitality agreement in 2024 (17.7k rooms); 28.3k rooms (200
hotels) signed in Q4
●
Signings mix drives pipeline to a weighting of 51% across midscale
segments and 49% across upscale and luxury, which over the coming
years will continue to drive a more balanced system mix and fee
stream
●
Conversions saw further strong growth, and represented 52% of all
room openings in 2025; conversion signings of 306 hotels in 2025
(255 in 2024 excluding NOVUM, 374 in total), an increase in rooms
of +10% excluding NOVUM and represented 40% of all room signings in
2025; new-build signings for 358 hotels, an increase in rooms of
+8%
●
Global pipeline of 340k rooms (2,292 hotels), representing 33% of
current system size and growth of +4% YOY
●
Around 50% of the global pipeline is under
construction
System and pipeline summary of movements in 2025 and closing
positions (rooms):
|
|
System
|
Pipeline
|
||||||
|
|
Openings
|
Removalsa
|
Net
|
Total
|
YOY%
|
YOY%
|
Signings
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Total
|
|
|
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Reported
|
Adjusteda
|
|
|
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Global
|
65,078
|
(26,026)
|
39,052
|
1,026,177
|
+4.0%
|
+4.7%
|
102,054
|
339,526
|
|
Americas
|
18,776
|
(17,576)
|
1,200
|
529,194
|
+0.2%
|
+1.6%
|
26,626
|
105,374
|
|
EMEAA
|
24,107
|
(2,979)
|
21,128
|
287,602
|
+7.9%
|
+7.9%
|
43,409
|
116,866
|
|
Greater China
|
22,195
|
(5,471)
|
16,724
|
209,381
|
+8.7%
|
+8.7%
|
32,019
|
117,286
|
a.
Removals include 7,092 rooms previously affiliated with The
Venetian Resort Las Vegas which exited IHG's system in January
2025. The adjusted measures of system growth are presented for the
Americas region and globally to show the impact of if these rooms
had been excluded from the comparable opening
position.
The regional performance reviews provide further detail of the
system and pipeline by region, and further analysis by brand and by
ownership type.
|
CHIEF EXECUTIVE'S REVIEW
|
|
IHG's strategic priorities
|
Our purpose of True Hospitality for Good is at the heart of our
brands and culture, and our focus is on what is central to our
customers: being the hotel company of choice for guests and owners.
Our strategic priorities are to deliver:
●
Relentless Focus on Growth: a targeted approach to expanding our
brands in high-value and growth markets
●
Brands Guests and Owners Love: our explicit intention to deliver
for both groups, every time
●
Leading Commercial Engine: investment in the technology and tools
that drive commercial success and make the biggest difference to
guests, owners and hotel teams
●
Care for our People, Communities and Planet: a focus aligned to our
2030 Journey to Tomorrow plan
These strategic pillars allow us to build on prior investments in
our brand portfolio, IHG One Rewards and wider enterprise, and will
drive IHG towards realising its full potential in a sustainable and
responsible way. Over the long term, with disciplined execution,
our strategy creates value for all our stakeholders by delivering
growth in profits and cash flows, which can be reinvested in our
business and returned to shareholders, reflecting how IHG delivers
on our growth algorithm and investment case.
In 2025, we made significant further progress on these priorities,
including:
1.
Growing our brands
2.
Expanding key geographic markets
3.
Developing our leading technology and enterprise
platform
4.
Driving ancillary fee streams
5.
Delivering increased dividends and returning surplus capital to our
shareholders
Each of these are summarised below. Together, these have driven our
progress in 2025 on our growth algorithm, which we set out in 2024
as central to delivering value creation over the medium to long
term.
|
Delivering value creation over the medium to long term
|
IHG's growth algorithm:
Building on our strong track record of driving growth and
shareholder returns, in 2024 IHG set out a clear framework for
value creation over the medium to long term:
●
high-single digit percentage growth in fee revenue annually on
average over the medium to long term, driven largely by the
combination of RevPAR growth and net system growth;
●
100-150bps expansion in fee margin annually on average over the
medium to long term, driven largely by operational
leverage;
●
~100% conversion of adjusted earnings into adjusted free cash flow,
on average over the medium to long term;
●
sustainably growing the ordinary dividend;
●
returning additional capital to shareholders, such as through
regular share buyback programmes, further enhancing EPS growth;
and
●
the opportunity for compound growth in adjusted EPS of +12-15%
annually on average over the medium to long term, driven by the
combination of the above and including the assumption of ongoing
share buybacks.
IHG's total fee revenue growth is largely driven by the combination
of RevPAR and net system growth. Positive operational leverage is
expected as fee revenues are anticipated to grow faster than the
increase in our cost base. Additional drivers of this include
structural shifts over time such as a growing proportion of
franchising and increasing scale efficiencies in EMEAA and Greater
China.
In addition to fee margin progress from operational leverage, IHG
actively develops further opportunities to drive fee margin over
the longer term. These include cost base efficiency and
effectiveness initiatives, and the expansion of ancillary fee
streams including growth from loyalty point sales, co-brand credit
cards and branded residences.
Summary of progress on our growth algorithm in 2025:
IHG made strong progress on all components of our growth
algorithm:
● +7% growth in fee
revenue1;
● +360bps expansion in fee
margin1;
● >100% conversion of
adjusted earnings1 into
adjusted free cash flow1;
●
+10% growth in the ordinary dividend, a growth rate consistent with
that delivered for each of the last three years;
●
~$900m of additional capital returned to shareholders through the
2025 share buyback programme; and
● +16% growth in adjusted
EPS1 through
the combination of the above.
Within the +360bps fee margin1 expansion,
around +230bps was driven by operational leverage as the growth in
fee revenue1 was
achieved on a fee business cost base that was lower year-on-year,
the latter including benefits from our global efficiency programme
and our ongoing actions to drive cost productivity. The further
+130bps was due to incremental fees from the US co-brand credit
card agreements and from the sale of certain loyalty points
(together with certain other ancillary revenues). The changes in
arrangements for these two fee streams achieved the anticipated
incremental ~$40m and ~$25m step-ups within IHG's results from
reportable segments for 2025.
In 2025, an exceptional cost of $12m was charged to the fee
business in relation to a global efficiency programme, in line with
previously stated expectations. These costs targeted an initial
cash-on-cash payback within 12 months, will drive sustainable
savings beyond these implementation costs, and come on top of other
savings already being delivered and which will continue to build
further. The programme was designed to look at all areas of the
business, with the goal of achieving incremental cost base
effectiveness and scalability, which supports future margin
progression in addition to our continuous action to drive ongoing
efficiency. In 2024, IHG achieved fee revenue1 growth
of +6% whilst fee business cost growth was contained to an increase
of just +1%. In 2025, fee revenue1 grew
by a further +7%, but our cost base reduced by -3%, significantly
assisted by the specific achievements of the efficiency programme
in this particular year. Looking back historically over the longer
term, IHG has contained annual fee business costs to a low single
digit percentage average annual increase, reflecting a strong track
record of prior delivery of efficiencies which similarly supported
prior margin progress, and we are targeting to repeat this going
forward over the medium to long term.
The combination of the fee revenue growth and fee
margin1 expansion
drove a +13% increase in operating profit from reportable segments
to $1,265m for 2025. Adjusted interest expense1 of
$200m rose +21% on the prior year, driven largely by the effect of
returning capital to shareholders; our expected range for interest
for 2026 is $230-250m. Our adjusted tax1 rate
in 2025 was 27%, the same as the prior year, and a rate around 27%
continues to be anticipated for the near term based on current
legislation. Our buyback programmes led to a further -4.2%
reduction in the basic weighted average number of ordinary shares,
which additionally enhanced earnings per share. The combined effect
of our growth algorithm was therefore adjusted EPS increasing by
+16%.
The Board is confident of continued progress, consistent with our
growth algorithm and framework set out in 2024, that will deliver
further value creation over the medium to long term.
1.
Definitions for non-GAAP measures can be found in the 'Key
performance measures and non-GAAP measures' section, along with
reconciliations of these measures to the most directly comparable
line items within the Financial Statements.
|
Strategic and operational highlights in 2025
|
1. Growing our brands
As part of our relentless focus on growth, we look to grow the
reach of our overall brand portfolio as well as each of our
individual brands, supported by our masterbrand, loyalty programme
and wider enterprise. Over the last decade, we have expanded from
10 to 20 brands, with our 10 newer brands now accounting for 10% of
total current system size and 22% of the pipeline. Successful brand
growth and awareness is inherently linked to strong commercial
performance and achieving attractive returns on investment for our
hotel owners, all resulting in IHG driving sustainable growth in
our system size and fees. Key developments and highlights in 2025
included:
●
New premium collection brand, Noted Collection. To capitalise on
guest and owner demand in the large and fast-growing premium
segment, Noted Collection, IHG's 21st brand, will target an Upscale
to Upper Upscale price point and will build on IHG's
well-established successes with other collection and conversion
brands - Vignette, voco and Garner. The Noted Collection brand will
initially focus on our EMEAA region where there is a significant
proportion of high-quality hotels with their own unique identity,
and where a collection brand will expand our offer for guests and
allow more owners to benefit from our enterprise platform.
Officially launched in February 2026, IHG is already in initial
discussions with multiple owners, including several with portfolios
of hotels, for potential addition into our system as part of the
Noted Collection.
●
Accelerating quick-to-market conversions. Our midscale conversion
brand, Garner, has reached 166 open and pipeline hotels across 12
countries in just over two years since launch, which makes it IHG's
fastest-ever scaling of a brand globally. The brand is ready for
launch into the Greater China region. Our Luxury & Lifestyle
brand Vignette Collection, launched in 2021, is tracking ahead of
its goal to reach 100 hotels in a decade, with 31 open and 45
pipeline hotels. Our versatile premium conversion brand voco has
already achieved 124 open hotels across more than 30 countries
since launch in 2018, and has a further 108 hotels in its pipeline,
as signings continue to accelerate. These three conversion-focused
brands alone represented around one-third of 306 conversion
signings in 2025, with the remaining two-thirds across our other
brands. Common to all conversions, owners are drawn to the strength
of IHG's enterprise, including attracting IHG One Rewards members
to their hotels, and enhancing revenue management, new sales
account activation and marketing and distribution
effectiveness.
●
Acquisition of premium urban lifestyle brand, Ruby. Acquired in
February 2025, Ruby brings an exciting, distinct and high-quality
offer for both guests and owners in popular city destinations. The
urban micro space is a franchise-friendly model with attractive
owner economics, and we see excellent opportunities to expand
Ruby's strong European base and also grow in the Americas and Asia.
At the time of acquisition, Ruby had 20 open hotels. The first 17
of these have been added onto IHG's system in the initial phase of
integration, with the next stage of fully operating on IHG's Guest
Reservation System now underway. There were 10 pipeline hotels at
acquisition and a further six were signed by the end of 2025. The
Ruby brand was made available for US development by the end of the
year, and the first signing achieved in recent weeks in Chicago,
with further internationalisation planned for 2026.
●
Powering ahead with our established brands. InterContinental, Hotel
Indigo, HUALUXE, Crowne Plaza, EVEN Hotels, Holiday Inn, Holiday
Inn Express, Staybridge Suites and Candlewood Suites each have
pipelines representing at least 20% of current system size. Across
these brands, 452 hotels were signed in 2025, ahead of last year
(excluding the NOVUM conversions in the comparable period). We
continuously invest in new formats to deliver outperformance in key
guest metrics and further increase owner returns. Recent
developments for our world-leading Holiday Inn Express brand, with
almost 3,300 open hotels and 655 in the pipeline, include: the new
bean-to-cup upgraded coffee service rolling out to 85% of all
hotels in the US; and its 5th generation room and lobby design
opening in Greater China and Europe to boost both investment
returns and guest satisfaction. Meanwhile, the latest Holiday Inn
design has launched in more hotels in the US and seen good
performance uplifts, and TIME magazine recognised it as a World's
Best Brands in 2025 for each of the US, Mexico, UK and Germany
markets.
●
Luxury & Lifestyle expansion. Our six brands in this higher
fee-per-key category represent 14% of current system size (590
properties, 137k rooms) and 22% of our pipeline (400 properties,
73k rooms), with the pipeline representing 68% future growth in the
number of properties and 53% in rooms. We surpassed 2024's strong
signings performance with a further 97 Luxury & Lifestyle
hotels signed in 2025. In Upper Luxury, Six Senses has 66
properties and Regent 23 properties across the combination of their
open hotels and pipeline. With 15 openings and 23 signings in 2025,
InterContinental now has 242 open and 104 pipeline hotels, while
Kimpton has 85 and 67, respectively. Hotel Indigo has now exceeded
320 open and pipeline hotels in almost 50 countries, reflecting its
accelerated pace of development.
●
Building masterbrand trust and awareness. We made further
significant gains in 2025 with the IHG Hotels & Resorts
masterbrand, through increasing visibility across the guest
journey, breakthrough marketing, and a sharper focus on quality and
excellence at scale. This included continued partnering with
organisations such as the Six Nations Rugby and the US Open Tennis
Championships, the latter helping achieve an all-time high of IHG
masterbrand awareness amongst travellers in the US.
2. Expanding key geographic markets
IHG brands are already in over 100 countries. There are many
opportunities to develop further in existing markets by introducing
IHG brands not yet present, as well as entering new countries with
no current IHG presence at all. Existing markets may also be high
growth markets, particularly where they are developing economies
with low branded hotel penetration. Others may already be high
value and developed markets, but where our evolved brand portfolio
can target an increased market share. Key developments and
highlights in 2025 included:
●
Reaching new markets. In 2025, there were 32 opening debuts to new
countries for individual IHG brands, including three countries with
no prior IHG presence. The rapid rollout of Garner saw the brand
reach Austria, Italy, The Netherlands, Turkey, Thailand and Mexico.
The attraction of existing hotels converting to join IHG's system
also led to voco entering seven more countries in the year. We
added Candlewood and Kimpton to our extensive portfolio in Germany,
there were debuts in Peru for each of InterContinental, Vignette
and Hotel Indigo, and a further important development was the first
opening in Greater China for Atwell Suites.
●
Growing in each of our three largest markets. Our US estate reached
4,108 hotels, with net system growth of +1.5% (adjusting for The
Venetian), and the US pipeline represents 20% of current system
size. In Greater China, in early 2025 we celebrated IHG's 50th
anniversary and our 800th opening, and we reached 882 open hotels
by the end of the year with net system growth of +8.7%; it was also
another record year of both hotel openings and signings, the latter
taking the pipeline to 582 hotels, which represents +56% future
rooms growth. After the US and China, our next largest country
market is the UK with 370 hotels, with net system growth of +3.9%.
UK openings included five additional voco properties, four Garner
conversions, three Hotel Indigo properties and the three additions
from the Ruby acquisition. Signings for 19 properties in the UK
included 10 further Garner conversions.
●
Expanding in other high value, developed markets. Germany is one of
Europe's largest hotel markets, with strong domestic consumption
and inbound travel, and is also one of the largest sources of
international outbound travel globally. Largely in this market, the
prior year's agreement with NOVUM Hospitality is adding 108 open
hotels (15.3k rooms) to IHG's system and there were a further 11
pipeline hotels (2.4k rooms) at the time. A total of 96 hotels
(14.0k rooms) have been converted to IHG's brands to date, 58
(10.2k rooms) in 2024, followed by 38 hotels (3.8k rooms) in 2025.
A further 15 signings have also been secured beyond the 119 in the
initial agreement. Our open and pipeline hotels in Germany now
stands at 242, more than double the 110 at the start of 2024.
Across the whole of our Europe sub-region, we are approaching 1,000
open hotels, with over 250 more in the pipeline. Japan, another
example of a high value developed market, now has 59 open hotels,
with 8 openings and 18 signings achieved in 2025.
●
Doubling IHG's presence in high growth, emerging markets. In India,
35 signings in 2025 marked a record year, including first signings
for Garner and the opening of the country's first Vignette
Collection. India has 51 open and 89 pipeline hotels, with
accelerating momentum supporting IHG's ambition to reach more than
400 open and pipeline hotels within the next five years. Saudi
Arabia has 48 open and 63 pipeline hotels, with 21 signed in 2025.
The latter signings included two portfolios totalling six hotels
across five different IHG brands, as well as the launch of EVEN
Hotels in EMEAA. Excluding our major market of Greater China and
also the developed markets of Australia, New Zealand and Japan,
across the rest of Asia Pacific there are highly attractive
emerging market conditions, where we have 163 open hotels currently
and already have a pipeline of a further 96
properties.
3. Developing our leading technology and enterprise
platform
By investing in our enterprise, 83% of room revenue at hotels in
our system is booked through IHG-managed channels and sources. This
is a key indicator of value-add, the success of our commercial
engine across technology platforms, and of our sales and
distribution channels. Providing owners higher-value revenue at
lower cost of acquisition is of paramount importance to our owner
proposition. Key developments and highlights in 2025
included:
●
Boosting loyalty to drive value for guests and owners. Expanding to
over 160 million IHG One Rewards members globally, enrolments were
up +25% YOY and loyalty penetration increased to 66% of all room
nights booked, growing by over 3%pts in each region and is highest
in the US and Americas overall at 73%. Loyalty members typically
spend ~20% more in hotels than non-members and are around 10x more
likely to book direct. The number of Reward Night redemptions
increased by +9% YOY, and there was +12% growth in the number of
Milestone Rewards selected in 2025, further reflecting that loyalty
members are actively engaging and receiving value from the
programme. Additional loyalty partnerships were established in the
year, such as between IHG's long-standing SME travel programme, IHG
Business Edge, and Delta Air Lines' Business Traveler platform, and
similarly with Qatar Airways' Beyond Business corporate rewards
programme. Other examples of new partnerships include with the King
Pro League (KPL) in Greater China to serve the rapidly growing
eSports industry, with loyalty members able to redeem points for
KPL match tickets and exclusive fan packages. Amongst many
accolades and awards during the year, IHG One Rewards received Best
Hotel Rewards Program in the World for the 21st consecutive year at
the Global Traveler 2025 awards.
●
Strong mobile and digital channels growth. IHG's direct digital
booking channels now deliver over 26% of total room revenue,
supporting a further 2%pts YOY increase in overall enterprise
contribution. In 2025, there were another 9 million app downloads
and over 60% of active elite loyalty members used the app in the
last 12 months. Further enhancements include guests' ability to
book different room types under a single reservation, store
multiple payment cards, and take advantage of new redemption
rewards, while Digital Check-Out expanded to 3,500+ hotels.
Adapting to local booking preferences, we also partnered with
Rakuten and launched the LINE mini app in Japan.
●
Driving further advantages through our Guest Reservation System
(GRS). Maximising guest choice and value with IHG's GRS is central
to our owners. The up-sell of unique room attributes such as room
size and views is available across our global estate, and
approximately half of customers saw an up-sell offer at some point
in their booking journey in 2025, up from 30% in 2024. When
selected, these offers are achieving average nightly room revenue
increases approaching $50 for Luxury & Lifestyle and $20 across
our Essentials and Suites brands. This is driving more bookings
into premium rooms, and more revenue to hotel owners.
●
Full roll-out of new Revenue Management System (RMS). Another
significant innovation unlocked by the GRS is our new Revenue
Management System. A further 3,400+ hotels adopted the system in
2025, completing the roll-out across our global estate of 6,800
eligible hotels. This new RMS offers best-in-class cloud-based
platforms and incorporates data science, AI machine learning and
forecasting tools to deliver advanced insights and recommendations
to owners. User feedback is very positive, and indicative levels of
revenue uplift and market share gains have been
encouraging.
●
Delivering best-in-class cloud-based Property Management Systems
(PMS). We are creating even greater value for owners by providing
hotels with next-generation PMS through cloud-based, above-property
solutions that apply the latest technology and allow the deployment
of fast, efficient enhancements. Benefits include quicker colleague
onboarding and training, and streamlined front desk processes such
as via mobile and remote access. HotelKey was our first approved
PMS solution in the Americas and EMEAA, and an equivalent platform
from Shiji has been deployed to hotels in Greater China. In
addition, we recently established a new agreement to provide Oracle
OPERA Cloud as a further PMS solution for IHG hotel owners. The
accelerated roll-out of these cloud-based PMS solutions reached
2,000 hotels in 2025, and we expect to double this to 4,000 by the
end of 2026.
●
Launching new digital content and customer engagement platforms.
Following development in 2025, phased rollout of a new content
management platform begins in 2026 across our app and all IHG
booking websites, making it easier and faster for hotel owners to
create and update compelling content to showcase their properties.
This includes machine translation into multiple languages and
optimising AI search of structured content, new media types such as
video, 360 images, floor plans and virtual tours, and improved
information on the properties and nearby attractions. To help
deepen loyalty and drive guest satisfaction, a new Customer
Relationship Management platform is also in development, together
with an extensive refresh across our loyalty platform technology,
which will allow for better guest engagement and more tailored,
high-touch personalised experiences during booking and
on-property.
●
Driving advantages from AI across IHG's tech stack and entire
enterprise. IHG has an interconnected technology ecosystem,
underpinned by AI, which delivers competitive advantage to how we
promote hotels, optimise operations and engage with guests. This
ecosystem brings together for hotel owners industry-leading
technology through our GRS, RMS and PMS. All have been developed by
best-in-class partners to fulfil specific needs and seamlessly
integrate into a cloud-based SaaS platform environment that is
already embracing the power of AI. These in turn enable our new
content and customer engagement platforms, which further leverage
AI across our distribution channels and our marketing to improve
customer acquisition and retention. AI is also already supporting
the lowering of costs and increasing the effectiveness of service
delivery for our hotel owners in other areas - for example, our
digital chatbot having 5.1 million conversations with guests in
2025, up +40%, to help solve their queries which save hotel teams
time and improve customer satisfaction. Within IHG's own
operations, we have launched numerous AI-powered automations as
part of our ongoing efficiency programmes to transform our cost
base and boost productivity. IHG has also invested in accelerating
our AI-driven innovation through senior leadership hires to lead on
our global AI strategy, and technical and data
architecture.
●
Delivering on the scale and skill advantages of the System Fund.
The System Fund is managed for the benefit of hotels in the IHG
system, and not to a surplus or deficit for IHG over the longer
term. System Fund revenues in 2025 totalled $1.7bn, +25% more than
2019. Following a review in 2024 of IHG's owner charges, IHG
lowered from the start of that year its standard loyalty assessment
fee that owners pay into the Fund and increased certain Reward
Night reimbursements owners receive from the Fund when points are
redeemed for stays, which additionally improves owner economics.
From the Marketing & Reservation fee that owners pay into the
Fund, expenditure by the Fund on marketing in 2025 totalled $542m,
+18% higher than 2019. Coming into 2025, the System Fund had
returned to a cumulative neutral position, reflecting the strength
of funding arrangements. As IHG's RevPAR and system size continues
to grow in the future, so too will System Fund capacity, which in
turn will drive further scale advantages and efficiencies, enabling
IHG's ongoing investment in leading technology and the wider
enterprise.
4. Driving ancillary fee streams
IHG actively looks to grow ancillary fee streams from other
sources. These are separate and in addition to fee streams paid by
hotel owners for use of IHG's brands and for the services provided
to them as part of our enterprise platform. Ancillary streams
typically further enhance our overall fee margin, providing step
changes in 2024 and 2025 and thereafter contributing to our target
of 100-150bps annual improvement in fee margin on average over the
medium to long term.
●
Sale of loyalty points to consumers. As previously described, in
2024 approximately $25m of incremental revenue and operating profit
from reportable segments was delivered from changes applied to
arrangements for the sale of certain loyalty points and other
ancillary revenues, with the concluding step-change in arrangements
delivering the expected doubling of this in 2025. Further growth is
expected in future years, driven by the number of points sold
continuing to increase, and the ongoing expansion and success of
the IHG One Rewards programme.
●
Co-brand card agreements. The attraction of co-branded IHG One
Rewards cards is intrinsically linked to the overall appeal and
growth of the loyalty programme, and they drive further membership
and loyalty to that programme, deepen guest relationships and
deliver more business to our hotels. Co-brand card holders stay
even more frequently and spend more in IHG hotels. In November
2024, IHG entered into new agreements with our US co-brand credit
card issuing and financial services partners that were effective
immediately from that date and have an initial term running through
to 2036. Under prior arrangements, fees recognised within IHG's
operating profit from reportable segments in 2023 were $39m. These
have approximately doubled in 2025, as was anticipated from the new
arrangements, and are still expected to more than triple from the
2023 level by 2028, with continued growth anticipated in the years
beyond. The balance of fees that is recognised within System Fund
revenue is also expected to grow meaningfully over the term of the
new agreements. The number of US co-brand card members saw high
single-digit percentage growth in 2025, alongside a comparable
uplift in total card spend. We also expanded the IHG and Chase
partnership with new IHG One Rewards status for Chase Sapphire
Reserve and Chase Sapphire Reserve for Business cards. Separately,
we have recently signed a new UK co-branded IHG One Rewards debit
card agreement with Revolut, alongside Visa, with card products
scheduled to be launched later this year. Further co-brand priority
growth markets are targeted for future years.
●
Branded residential properties. A further example of driving
ancillary fees through the strength of IHG's brands is their
ability to generate increased sales of residential property,
typically alongside a hotel development with shared services and
facilities. This industry segment has almost tripled in number of
branded residential developments worldwide over the last decade,
and based solely on the schemes already signed the segment is
forecast to approximately double in size between 2025 and 2032,
according to Savills. Hotel developers, particularly in the Luxury
category, are therefore increasingly looking at mixed use
developments that also involve a residential component, and our
brands are also seeing growing interest for use in residential-only
developments. IHG has 30+ branded residential projects open or
selling properties across 15+ countries, and more in the pipeline.
Fees earned by IHG from branded residences increased in 2025,
benefiting from strong sales at Six Senses Dubai Marina, which have
added to the success of the previously fully sold development at
Six Senses The Palm, Dubai, and growth in this latest year also
from the near-complete sale of residences at Six Senses, London.
Signings in 2025 for future branded residences developments
included Six Senses Myoko, Japan, and two in Thailand at the
InterContinental Phuket Resort and the InterContinental Residences
Bangkok Asoke. Further fee growth is expected to be substantial in
2027 and beyond, as more of the current residential units under
development are sold, and as we continue to leverage the global
reach and potential of IHG's Luxury & Lifestyle
brands.
5. Delivering increased dividends and return of surplus capital to
our shareholders
The Board expects IHG's business model to continue its strong track
record of generating substantial capacity to support our investment
plans that drive growth, fund a sustainably growing ordinary
dividend, and routinely return surplus capital to
shareholders.
●
Consistent capital allocation approach. IHG's asset-light business
model is highly cash-generative through the cycle and enables us to
invest in our brands and strengthen our enterprise platform. We
have a disciplined approach to capital allocation which ensures
that the business is appropriately invested in, whilst looking to
maintain an efficient and conservative balance sheet. IHG's
perspectives on the uses of cash generated by the business remain
unchanged: ensuring we invest in the business to optimise growth
that will drive long-term shareholder value creation, funding a
sustainably growing dividend, and then returning surplus capital to
shareholders, whilst targeting our leverage ratio within a range of
2.5-3.0x net debt:adjusted EBITDA to maintain an investment grade
credit rating.
●
Sustainably growing the ordinary dividend: +10% for 2025. IHG
typically pays dividends weighted approximately one-third to the
interim and two-thirds to the final payment. The total dividend for
2024 was 167.6¢, an increase of +10% on the prior year. The
interim dividend for 2025 was increased +10% to 58.6¢. With a
proposed final dividend increase of +10% to 125.9¢, the total
dividend for 2025 of 184.5¢ will have increased by +10% for
another year, an annual growth rate consistently delivered for
shareholders since 2022. The ex-dividend date for the final
dividend is Thursday 9 April 2026 (Friday 10 April 2026 for ADRs)
and the record date is Friday 10 April 2026. Subject to shareholder
approval at the AGM on Thursday 7 May 2026, the final dividend
will be paid on Thursday 14 May 2026.
●
Returning surplus capital: $900m share buyback programme completed
in 2025. This programme repurchased 7.6 million shares for $892m,
reducing the voting rights in the Company by a further 4.8% in
2025. This followed the $800m programme in 2024, $750m programme in
2023 and the $500m programme announced in 2022, which already
reduced the total number of voting rights by 4.6%, 6.1% and 5.0%,
respectively. Together with ordinary dividend payments in 2025 of
$270m, there were $1,162m of shareholder returns, equivalent to
5.9% of IHG's $19.8bn (£15.8bn) market capitalisation at the
start of 2025.
●
New $950m buyback for 2026. As announced on 17 February 2026
alongside our results for the 2025 financial year, a new share
buyback programme will commence immediately to return a further
$950m over the course of 2026. Together with the anticipated
sustainable growth in ordinary dividend payments, there would be
another $1.2bn+ returned to shareholders in respect of 2026,
equivalent to 5.8% of IHG's $21.3bn (£15.9bn) market
capitalisation at the start of 2026. Cumulatively over the five
years from 2022 to 2026, this will mean IHG has returned more than
$5bn to our shareholders.
●
Leverage now within 2.5-3.0x target range. IHG's net debt:adjusted
EBITDA ratio was 2.5x at 31 December 2025 increasing from 2.3x
at 31 December 2024. On a prospective basis, given analyst
consensus expectations for growth in EBITDA and cash generation in
2026, together with the new $950m share buyback programme, leverage
at the end of 2026 would be expected to remain within our target
range of 2.5-3.0x.
|
Care for our People, Communities and Planet
|
This is a key strategic pillar for IHG, supported by our Journey to
Tomorrow 2030 responsible business plan. Progress against this plan
is reported on in our Annual Reports and supplemental ESG data
books. Notable developments in 2025 include:
●
Developing and engaging our people. IHG maintained its place in the
top quartile of most engaged employers in 2025 with a score of 87%,
following our latest annual survey drawing upon the views of
130,000+ participating colleagues. Several awards in the year
underlined our commitment to strengthening workplace culture,
including ongoing recognition in the Fortune 100 Best Companies To
Work For in the US, and attaining Great Place to Work status in 21
markets globally. As part of a continued focus on colleagues'
development, we strengthened our hotel talent pipeline and
leadership capabilities through extensions to key programmes such
as the RISE mentoring programme and the Journey To programmes for
Supervisors, Managers and hotel General Managers. At a corporate
level, changes were made to sharpen goal setting, feedback and our
approach to performance management to better reward high
performers.
●
Promoting respect for and advancing human rights. We continued to
drive compliance with our Responsible Labour Requirements (RLRs) in
2025 with the launch of new, survivor-informed mandated training on
preventing human trafficking, developed in partnership with a
leading anti-trafficking NGO and industry peers. Digital
self-assessments also rolled out globally, enhancing transparency,
monitoring and the quality of corrective actions. Over 92% of
hotels already completed this new self-assessment.
●
Improving the lives of 30 million people through skills training,
disaster response and food security. Over 80,000 people were
trained and upskilled through our IHG Academy offerings in 2025.
This included the launch of Virtual Discover, delivering
interactive sessions to engage participants through schools, NGOs
and charities around the world. We also worked with organisations
to help provide job opportunities across our markets, including
Springboard in the UK, China Youth Development Foundation in
Greater China, the Tourism and Hospitality Skill Council in India,
and the Al Noor Training Centre for People of Determination in
Dubai. We responded to 22 natural disasters in the year, working
closely with charity partners to support relief and recovery
efforts. During the first 18 months of our partnership with global
NGO Action Against Hunger to combat food insecurity and hunger, we
helped support 5.4 million people as part of its global nutrition
programmes in over 50 countries. Across other collective action to
give back to our communities, 40,000 colleagues supported the work
of more than 700 charities.
●
Our ongoing commitment to energy reduction and decarbonisation. IHG
achieved a -10.2% reduction in energy per available room and an
-11.0% reduction in carbon emissions per available room in 2025,
compared with 2019. However, the continued lack of a clean energy
infrastructure in our markets, alongside the opening of more IHG
hotels around the world, means that total carbon emissions are up
+7.7% since 2019. We remain dedicated to the actions we are taking
to assist hotel owners in reducing carbon emissions and in 2025 we
continued to implement brand standards to drive energy efficiency
as well as reduce waste, and expanded our Low Carbon Pioneers
Programme, which now has hotels spanning Asia, Europe and South
America, including our first net-zero carbon hotel in the UK. We've
also continued to expand our Meeting for Good programme, which
supports event planners to deliver a more sustainable event
experience. In 2025, more than 650 hotels participated, and the
programme was named a Gold Medal winner in Northstar's Stella
Awards for Best Sustainability Initiative. In 2026, we will refresh
elements of our Journey to Tomorrow responsible business plan to
strengthen our ability to navigate diverse and complex energy
infrastructures and regulatory environments across our global
markets.
|
Summary of financial performance
|
INCOME STATEMENT SUMMARY
|
|
12 months ended 31 December
|
|||
|
|
2025
|
2024
|
%
|
|
|
|
|
Re-presenteda
|
|
|
|
|
$m
|
$m
|
change
|
|
|
Revenueb
|
|
|
|
|
|
Americas
|
1,129
|
1,141
|
(1.1
)
|
|
|
EMEAA
|
811
|
748
|
8.4
|
|
|
Greater China
|
165
|
161
|
2.5
|
|
|
Central
|
363
|
262
|
38.5
|
|
|
|
_____
|
_____
|
_____
|
|
|
Revenue
from reportable segmentsc
|
2,468
|
2,312
|
6.7
|
|
|
|
|
|
|
|
|
System
Fund and reimbursable revenues
|
2,721
|
2,611
|
4.2
|
|
|
|
_____
|
_____
|
_____
|
|
|
Total revenue
|
5,189
|
4,923
|
5.4
|
|
|
|
|
|
|
|
|
Operating profitb
|
|
|
|
|
|
Americas
|
836
|
828
|
1.0
|
|
|
EMEAA
|
303
|
270
|
12.2
|
|
|
Greater China
|
99
|
98
|
1.0
|
|
|
Central
|
27
|
(72)
|
NMe
|
|
|
|
_____
|
_____
|
_____
|
|
|
Operating
profit from reportable segmentsc
|
1,265
|
1,124
|
12.5
|
|
|
Analysed as:
|
|
|
|
|
|
Fee business
|
1,231
|
1,085
|
13.5
|
|
|
Owned & leased
|
43
|
45
|
(4.4
)
|
|
|
Insurance activities
|
(9)
|
(6)
|
50.0
|
|
|
|
|
|
|
|
|
System
Fund and reimbursable result
|
(46)
|
(83)
|
(44.6
)
|
|
|
|
_____
|
_____
|
_____
|
|
|
Operating
profit before exceptional items
|
1,219
|
1,041
|
17.1
|
|
|
Operating
exceptional items
|
(21)
|
-
|
NMe
|
|
|
|
_____
|
_____
|
_____
|
|
|
Operating profit
|
1,198
|
1,041
|
15.1
|
|
|
|
|
|
|
|
|
Net
financial expenses
|
(153)
|
(115)
|
33.0
|
|
|
Analysed as:
|
|
|
|
|
|
Adjusted interest expensec
|
(200)
|
(165)
|
21.2
|
|
|
System Fund interest
|
47
|
50
|
(6.0)
|
|
|
|
|
|
|
|
|
Foreign
exchange gains/(losses)
|
37
|
(25)
|
NMe
|
|
|
Remeasurement
of contingent purchase consideration
|
(8)
|
(4)
|
100.0
|
|
|
|
_____
|
_____
|
_____
|
|
|
Profit before tax
|
1,074
|
897
|
19.7
|
|
|
|
|
|
|
|
|
Tax
|
(315)
|
(269)
|
17.1
|
|
|
Analysed as:
|
|
|
|
|
|
Adjusted taxc
|
(290)
|
(262)
|
10.7
|
|
|
Tax attributable to System Fund
|
(9)
|
(4)
|
125.0
|
|
|
Tax on foreign exchange gains/losses
|
-
|
(3)
|
NMe
|
|
|
Tax exceptional items
|
(16)
|
-
|
NMe
|
|
|
|
_____
|
_____
|
_____
|
|
|
Profit for the year
|
759
|
628
|
20.9
|
|
|
|
|
|
|
|
|
Adjusted earningsd
|
774
|
697
|
11.0
|
|
|
|
|
|
|
|
|
Basic
weighted average number of ordinary
shares (millions)
|
154.4
|
161.2
|
(4.2
)
|
|
|
|
_____
|
_____
|
_____
|
|
|
Earnings per ordinary share
|
|
|
|
|
|
Basic
|
490.9¢
|
389.6¢
|
26.0
|
|
|
Adjustedc
|
501.3¢
|
432.4¢
|
15.9
|
|
|
|
|
|
|
|
|
Dividend per share
|
184.5¢
|
167.6¢
|
10.1
|
|
|
|
|
|
|
|
|
Average
US dollar to sterling exchange rate
|
$1: £0.76
|
$1:
£0.78
|
(2.6)
|
|
a.
Re-presented to present foreign exchange gains/(losses) on a
separate line which was previously presented within 'Net financial
expenses'.
b.
Americas and EMEAA include revenue and operating profit before
exceptional items from both fee business and owned & leased
hotels. Greater China includes revenue and operating profit before
exceptional items from fee business.
c.
Definitions for non-GAAP measures can be found in the 'Key
performance measures and non-GAAP measures' section, along with
reconciliations of these measures to the most directly comparable
line items within the Financial Statements.
d.
Adjusted earnings as used within adjusted earnings per share, a
non-GAAP measure. Excludes $1m profit attributable to
non-controlling interest.
e.
Percentage change considered not meaningful, such as where a
positive balance in the latest period is comparable to a negative
or zero balance in the prior period.
Revenue
Global RevPAR increased year-on-year by 3.3% in the first
quarter, 0.3% in the second quarter, 0.1% in
the third quarter, 1.6% in the fourth quarter
and 1.5% for the full year, with performance varying
across our globally diverse portfolio of hotels. Our other key
driver of revenue, net system size, increased
by 4.0% year-on-year to 1,026,177 rooms. After
adjusting for the impact of removing 7,092 rooms
previously affiliated with The Venetian Resort Las Vegas, net
system size increased by 4.7%.
Total revenue increased by $266m (5.4%) to $5,189m, including a
$110m increase in System Fund and reimbursable revenue. Revenue
from reportable segmentsa increased
by $156m (6.7%) to $2,468m, driven by a combination of system and
RevPAR growth, together with incremental fees from previous changes
in the arrangements related to the US co-brand credit card
arrangements and from the sale of certain loyalty points (together
with certain other ancillary revenues). These revenue streams
achieved the incremental ~$40m and ~$25m step-changes within IHG's
results from reportable segmentsa in
2025, along with additional underlying growth. Underlying
revenuea increased
by $133m (5.7%) to $2,454m, with underlying fee
revenuea increasing
by $110m (6.2%) to $1,890m. Owned & leased
revenue increased by $29m (5.6%)
to $544m.
Operating profit and margin
Operating profit increased by $157m from $1,041m to $1,198m,
including $21m operating exceptional costs in relation to
the global efficiency programme and to commercial litigation and
disputes, compared to operating exceptional items
of $nil recorded in the prior year. The reported System
Fund and reimbursable result improved by $37m in the year, as
the loss reduced from $83m in 2024 to $46m in 2025.
Operating profit from reportable segmentsa increased
by $141m (12.5%) to $1,265m. Fee business operating
profit increased by $146m (13.5%) to $1,231m, due to RevPAR
and system growth, including a $12m increase in incentive
management fees to $190m, combined with incremental ancillary
fee revenue. Owned & leased operating profit declined
from $45m to $43m. Underlying operating
profita increased
by $135m (12.0%) to $1,264m.
Fee margina increased by 3.6%pts to 64.8%,
with around 2.3%pts driven by operational leverage and cost
efficiencies from the global efficiency programme, and a further
~1.3%pts due to incremental fees from the US co-brand credit card
agreements and from the sale of certain loyalty points (together
with certain other ancillary revenues).
The impact of the movement in average USD exchange rates for 2024
compared to 2025 netted to a $nil impact to operating
profit from reportable segmentsa when
calculated as restating 2024 figures at 2025 exchange rates, and
benefitted operating profit from reportable
segmentsa by
$1m when applying 2024 rates to 2025 figures.
If the average exchange rate during January 2026 had existed
throughout 2025, the 2025 operating profit from reportable
segmentsa would
have been $6m higher.
System Fund and reimbursable result
The Group operates a System Fund to collect and administer
assessments from hotel owners for specified purposes of use
including marketing, reservations, certain hotel services and the
Group's loyalty programme, IHG One Rewards. The System Fund also
benefits from certain proceeds from the sale of loyalty points
under third-party co-branding arrangements and the sale of points
directly to members and other third parties. The Fund is not
managed to generate a surplus or deficit for IHG over the longer
term, but is managed for the benefit of hotels in the IHG system
with the objective of driving revenues for the hotels in the
system.
The growth in the IHG One Rewards programme means that, although
assessments are received from hotels upfront when a member earns
points, more revenue is deferred each year than is recognised in
the System Fund. This can lead to accounting losses in the System
Fund each year as the deferred revenue balance grows which do not
necessarily reflect the Fund's position and the Group's capacity to
invest.
Reimbursable revenues represent reimbursements of expenses incurred
on behalf of managed and franchised properties and relate,
predominantly, to payroll costs at managed properties where IHG is
the employer. As IHG records reimbursable expenses based upon costs
incurred with no added mark up, this revenue and related expenses
have no impact on either operating profit or net profit for the
year.
In the year to 31 December 2025, System Fund and reimbursable
revenues increased $110m (4.2%) to $2,721m. This was driven by
the growth in System Fund revenue driven by the continued increase
in net system size compounded by year-on-year RevPAR
growth.
The reported System Fund and reimbursable result improved from
an $83m loss to a $46m loss, primarily due to
the System Fund revenue growth mentioned above and the impact of
the global efficiency programme, partially offset by increased
investments in marketing and loyalty.
a.
Definitions for non-GAAP measures can be found in the 'Key
performance measures and non-GAAP measures' section, along with
reconciliations of these measures to the most directly comparable
line items within the Financial Statements.
Operating exceptional items
Operating exceptional items for the year to 31 December 2025
were $21m (2024: $nil), comprising costs of $12m relating to the
global efficiency programme and $9m relating to litigation and
commercial disputes. Further information on operating exceptional
items can be found in note 5 to the Financial
Statements.
Net financial expenses
Net financial expenses increased to $153m from $115m. Net financial
expenses include total interest costs on public bonds, which are
fixed rate debt, of $153m (2024: $123m) and interest expense on
lease liabilities of $30m (2024: $30m). In 2025, foreign exchange
gains/(losses) have been presented on a separate line of the Group
income statement. The 2024 amount was previously presented within
net financial expenses.
Adjusted interesta,
which adds back interest attributable to the System Fund, increased
by $35m to an expense of $200m, driven by the increase in net debt
and average interest rates on bond debt.
Foreign exchange gains and losses
Foreign exchange gains of $37m (2024: losses of $25m) are
predominantly due to translation of intra-group US dollar monetary
assets and liabilities held by subsidiaries with a sterling
functional currency.
Remeasurement losses on contingent purchase
consideration
Contingent purchase consideration arose on the acquisition of
Regent and, from 2025, the acquisition of the Ruby brand. The loss
of $8m (2024: $4m loss) is principally the unwind of the discount
due to the passage of time. The total contingent purchase
consideration liability at 31 December 2025 is $98m
(31 December 2024: $73m).
Taxation
The adjusted tax ratea for
2025 was 27.2% (2024: 27.3%). The total tax charge includes a net
exceptional charge of $16m (2024: $nil), comprising a charge of
$21m following the completion of an intra-group restructuring
transaction offset by the tax impacts of the operating exceptional
items.
Tax paid in 2025 totalled $307m (2024: $309m), including
exceptional tax paid of $34m related to the settlement of a tax
liability which originally arose as a result of the acquisition of
Holiday Inn in 1990. Further information on tax can be found in
note 6 to the Financial Statements.
Earnings per share
The Group's basic earnings per ordinary share is 490.9¢ (2024:
389.6¢). Adjusted earnings per ordinary
sharea increased
by 68.9¢ (15.9%) to 501.3¢.
Dividends and shareholder returns
The Board is proposing a final dividend of 125.9¢ in
respect of 2025, an increase of 10% on 2024. With the
interim dividend of 58.6¢ paid in October 2025,
the total dividend for the year would therefore
be 184.5¢, representing an increase of 10% on
2024. The ex-dividend date for ordinary shares is Thursday 9 April
2026 and for American Depositary Receipts the ex-dividend date is
Friday 10 April 2026. The record date (for both ordinary shares and
American Depositary Receipts) is Friday 10 April 2026. The
corresponding dividend amount in pence sterling per ordinary share
will be announced on Monday 27 April 2026, calculated based on the
average of the market exchange rates for the three working days
commencing 22 April 2026. Subject to shareholder approval at the
AGM on Thursday 7 May 2026, the dividend will be paid on Thursday
14 May 2026.
Registered shareholders may elect to receive their dividend
payments in US Dollars (USD) instead of British Pounds (GBP).
Elections to receive dividend payments in USD can be made by
completing the Currency Form which is available
from www.shareview.info/products/directdividends.
Alternatively, registered shareholders can contact the Company's
Registrar, Equiniti, by telephone on +44 (0) 371 384 2132 to
request a Currency Form. For shares held in CREST, an election for
USD will be permitted using the CREST dividend election process.
CREST participants should ensure a USD CREST Memorandum Account has
been enabled.
A Dividend Reinvestment Plan ("DRIP") is provided by Equiniti
Financial Services Limited. The DRIP enables the Company's
shareholders to elect to have their cash dividend payments used to
purchase the Company's shares. More information can be found
at www.shareview.co.uk/info/drip.
The cut-off date and time for the receipt of USD payment elections
and DRIP elections for the final dividend referred to above is 23
April 2026 at 5:00pm (UK time).
The Board has approved a $950m share buyback programme in
2026. This follows the $900m programme
in 2025, $800m programme
in 2024, the $750m programme announced
in 2023 and the $500m programme in 2022, which already
reduced the total number of voting rights in the Company by 4.8%,
4.6%, 6.1% and 5.0%, respectively. In 2025, 7.6m shares
were repurchased for $892m.
a.
Definitions for non-GAAP measures can be found in the 'Key
performance measures and non-GAAP measures' section, along with
reconciliations of these measures to the most directly comparable
line items within the Financial Statements.
|
Summary of cash flow, working capital, net debt and
liquidity
|
|
Adjusted EBITDAa reconciliation
|
12 months ended 31 December
|
||
|
|
2025
|
2024
|
|
|
|
$m
|
$m
|
|
|
Cash flow from operations
|
1,361
|
1,149
|
|
|
Cash flows relating
to operating exceptional items
|
23
|
(8)
|
|
|
Impairment loss on financial assets
|
(21)
|
(16)
|
|
|
Other impairment charges
|
(2)
|
(6)
|
|
|
Other non-cash adjustments to operating profit
|
(93)
|
(77)
|
|
|
System Fund and reimbursable result
|
46
|
83
|
|
|
System Fund depreciation and amortisation
|
(79)
|
(80)
|
|
|
Other non-cash adjustments to System Fund result
|
(46)
|
(37)
|
|
|
Working capital and other adjustments
|
(36)
|
(56)
|
|
|
Capital expenditure: contract acquisition costs, net of
repayments
|
179
|
237
|
|
|
|
_____
|
_____
|
|
|
Adjusted EBITDAa
|
1,332
|
1,189
|
|
|
|
_____
|
_____
|
|
|
CASH FLOW SUMMARY
|
12 months ended 31 December
|
||||
|
|
2025
|
2024
|
$m
|
||
|
|
$m
|
$m
|
change
|
||
|
|
|
|
|
||
|
Adjusted EBITDAa
|
1,332
|
1,189
|
143
|
||
|
|
|
|
|
||
|
Working
capital and other adjustments
|
36
|
56
|
|
||
|
Repayments
related to investments supporting the Group's insurance
activities
|
3
|
5
|
|
||
|
Impairment loss on
financial assets
|
21
|
16
|
|
||
|
Other impairment charges
|
2
|
6
|
|
||
|
Other
non-cash adjustments to operating profit
|
93
|
77
|
|
||
|
System
Fund and reimbursable result
|
(46)
|
(83)
|
|
||
|
Non-cash
adjustments to System Fund result
|
125
|
117
|
|
||
|
Capital
expenditure: key money contract acquisition costs, net of
repayments
|
(177)
|
(206)
|
|
||
|
Capital
expenditure: gross maintenance
|
(31)
|
(31)
|
|
||
|
Net
interest paid
|
(156)
|
(113)
|
|
||
|
Tax paidb
|
(273)
|
(309)
|
|
||
|
Principal
element of lease payments, net of finance lease
receipts
|
(26)
|
(42)
|
|
||
|
Purchase
of own shares by employee share trusts
|
(10)
|
(27)
|
|
||
|
|
_____
|
_____
|
_____
|
||
|
Adjusted free cash flowa
|
893
|
655
|
238
|
||
|
|
|
|
|
||
|
Cash
flows relating to exceptional itemsb
|
(57)
|
8
|
|
||
|
Capital expenditure: gross recyclable investments
|
(16)
|
(68)
|
|
||
|
Capital
expenditure: gross System Fund
capital investments
|
(43)
|
(45)
|
|
||
|
Purchase
of brands
|
(120)
|
-
|
|
|
|
|
Deferred
purchase consideration paid
|
-
|
|
(13)
|
|
|
|
Disposals
and repayments, including proceeds from other
financial assets
|
11
|
15
|
|
||
|
Repurchase
of shares, including transaction costs
|
(897)
|
(804)
|
|
||
|
Dividends
paid to shareholders
|
(270)
|
(259)
|
|
||
|
Other
financing cash flows
|
6
|
-
|
|
|
|
|
|
_____
|
_____
|
_____
|
||
|
Net cash flow before other net debta movements
|
(493)
|
(511)
|
18
|
||
|
|
|
|
|
||
|
Add
back principal element of lease repayments
|
30
|
46
|
|
||
|
Exchange
and other non-cash adjustments
|
(88)
|
(45)
|
|
||
|
|
_____
|
_____
|
_____
|
||
|
Increase in net debta
|
(551)
|
(510)
|
(41)
|
||
|
Net
debta at beginning of
the year
|
(2,782)
|
(2,272)
|
|
||
|
Net debta at end of
the year
|
(3,333)
|
(2,782)
|
(551)
|
||
|
|
_____
|
_____
|
_____
|
||
|
|
|
|
|
|
|
a.
Definitions for non-GAAP measures can be found in the 'Key
performance measures and non-GAAP measures' section, along with
reconciliations of these measures to the most directly comparable
line items within the Financial Statements.
b.
In 2025 'Tax paid' excludes, and 'Cash flows relating to
exceptional items' includes, $34m of exceptional tax
paid.
Cash flow from operations
For the year ended 31 December 2025, cash flow from operations
was $1,361m, an increase of $212m on the
previous year. This was predominantly due to the higher operating
profit from reportable segmentsa,
lower contract acquisition costs and an improvement in the System
Fund and reimbursable result.
Cash flow from operations is the principal source of cash used to
fund interest and tax payments, capital expenditure, ordinary
dividend payments and additional returns of capital to
shareholders.
Adjusted free cash flowa
Adjusted free cash flowa was
an inflow of $893m,
an increase of $238m on the prior year.
Adjusted EBITDAa increased by $143m due
to the improvement in trading and growth in ancillary fee streams.
The System Fund and reimbursable result improved by $37m,
reflecting System Fund revenue growth and the impact of the global
efficiency programme, partly offset by increased investments in
marketing and loyalty. Key money contract acquisition costs net of
repayments reduced by $29m, and tax payments (excluding
exceptional items) were $36m lower due to US tax
reforms. These movements were partly offset by
a $43m increase in net interest paid reflecting the
increase in average net debt. Working capital and other adjustments
of $36m includes $107m of
cash inflow related to deferred revenue, driven primarily
by $74m related to the loyalty programme
and $37m of upfront cash flows associated with the new US
co-brand credit card agreements.
Net and gross capital expenditurea
Net capital expenditurea was $185m (2024: $253m)
and gross capital expenditurea was $269m (2024: $350m).
Gross capital expenditurea comprised: $179m of
key money contract acquisition costs; $31m of
maintenance; $16m gross recyclable investments;
and $43m System Fund capital investments. Net capital
expenditurea includes
key money repayments of $2m and offsets from other disposals and
repayments of $4m, and $78m System Fund depreciation and
amortisation.
Net debta
Net debta increased
by $551m from $2,782m at 31 December 2024
to $3,333m at 31 December 2025. During the year, the
Group invested $120m to purchase the Ruby brand and there
were $1,167m of payments related to ordinary dividends
and the share buyback programmes, including transaction costs. The
change in net debta includes
adverse net foreign exchange impacts
of $69m and $19m of other non-cash
adjustments.
Sources of liquidity
As at 31 December 2025, the Group had total liquidity
of $2,599m (31 December 2024: $2,319m),
comprising $1,500m of undrawn bank facilities
and $1,099m of cash and cash equivalents (net of
overdrafts and restricted cash). The increase in total liquidity
from December 2024 of $280m is primarily due to
net additional bond funding of $587m and $150m from the
increase in the new bank revolving credit facility, offset by
net cash outflows of $493m.
The Group currently has $4,198m of sterling and euro
bonds outstanding. The bonds mature in August 2026 (£350m),
May 2027 (€500m), October 2028 (£400m), November 2029
(€600m), September 2030 (€850m) and September 2031
(€750m). There are currency swaps in place on the euro bonds,
fixing the May 2027 bond at £436m, the November 2029 bond at
$657m, the September 2030 bond at $990m and the September 2031 bond
at $834m. The Group currently has senior unsecured long-term credit
ratings of BBB from S&P and Baa2 from Moody's.
In December 2025, the Group entered into a
new $1,500m syndicated bank revolving credit facility
(RCF) and the previous $1,350m facility was cancelled on the same
day. The new five-year RCF matures in December 2030. There are two
one-year extension options that are at the lenders' discretion.
There are no financial covenants in the RCF.
The RCF was undrawn at 31 December 2025.
It is management's opinion that the current working capital levels
and available facilities are sufficient for the Group's present
liquidity requirements.
a.
Definitions for non-GAAP measures can be found in the 'Key
performance measures and non-GAAP measures' section, along with
reconciliations of these measures to the most directly comparable
line items within the Financial Statements.
|
Additional revenue, global system size and pipeline
analysis
|
Disaggregation of total gross revenue in IHG's system
Total gross revenuea provides
a measure of the overall strength of the Group's brands. It
comprises total rooms revenue from franchised hotels and total
hotel revenue from managed, exclusive partner and owned &
leased hotels and excludes revenue from the System Fund and
reimbursement of costs. Other than owned & leased hotels, total
gross revenue is not revenue attributable to IHG as it is derived
from hotels owned by third parties.
|
|
12 months ended 31 December
|
||
|
|
2025
|
2024
|
%
|
|
|
$bn
|
$bn
|
Changeb
|
|
Analysed by brand
|
|
|
|
|
InterContinental
|
5.6
|
5.3
|
5.6
|
|
Kimpton
|
1.5
|
1.4
|
5.9
|
|
Hotel
Indigo
|
1.1
|
1.0
|
14.0
|
|
Crowne
Plaza
|
3.7
|
3.7
|
(1.3)
|
|
Holiday
Inn Express
|
9.7
|
9.6
|
1.4
|
|
Holiday
Inn
|
6.1
|
6.0
|
1.3
|
|
Staybridge
Suites
|
1.4
|
1.3
|
4.1
|
|
Candlewood
Suites
|
1.0
|
0.9
|
5.3
|
|
Other
|
5.1
|
4.2
|
24.0
|
|
|
_____
|
_____
|
_____
|
|
Total
|
35.2
|
33.4
|
5.3
|
|
|
_____
|
_____
|
_____
|
|
Analysed by ownership type
|
|
|
|
|
Franchisedc (revenue
not attributable to IHG)
|
22.2
|
21.2
|
5.1
|
|
Managed
(revenue not attributable to IHG)
|
12.5
|
11.7
|
5.6
|
|
Owned
& leased (revenue recognised in Group income
statement)
|
0.5
|
0.5
|
5.4
|
|
|
_____
|
_____
|
_____
|
|
Total
|
35.2
|
33.4
|
5.3
|
|
|
_____
|
_____
|
_____
|
Total gross revenue in IHG's system increased
by 5.3% (4.7% increase at constant currency)
to $35.2bn, driven by the combination of
RevPAR growth and the increase in the number of
hotels in our system.
a.
Definitions for total gross revenue can be found in the 'Key
performance measures and non-GAAP measures' section to accompany
the above reconciliation to the Financial Statements
b.
Year-on-year percentage movement calculated from unrounded source
figures to provide more precise growth indicators for these figures
which are presented in billions of dollars.
c.
Includes exclusive partner hotels.
RevPARa movement
summary at constant exchange rates (CER)
|
|
Full Year 2025 vs 2024
|
Q4 2025 vs 2024
|
||||
|
|
RevPAR
|
ADR
|
Occupancy
|
RevPAR
|
ADR
|
Occupancy
|
|
Global
|
1.5%
|
0.8%
|
0.5%pts
|
1.6%
|
1.1%
|
0.3%pts
|
|
Americas
|
0.3%
|
0.5%
|
(0.1)%pts
|
(1.4)%
|
(0.1)%
|
(0.9)%pts
|
|
EMEAA
|
4.6%
|
2.4%
|
1.6%pts
|
7.1%
|
3.3%
|
2.7%pts
|
|
Greater China
|
(1.6)%
|
(2.4)%
|
0.5%pts
|
1.1%
|
0.3%
|
0.5%pts
|
RevPARa movement
at CER vs actual exchange rates (AER)
|
|
Full Year 2025 vs 2024
|
Q4 2025 vs 2024
|
||||
|
|
CER
(as above)
|
AER
|
Difference
|
CER
(as above)
|
AER
|
Difference
|
|
Global
|
1.5%
|
2.1%
|
0.6%pts
|
1.6%
|
3.1%
|
1.5%pts
|
|
Americas
|
0.3%
|
0.1%
|
(0.2)%pts
|
(1.4)%
|
(1.0)%
|
0.4%pts
|
|
EMEAA
|
4.6%
|
6.8%
|
2.2%pts
|
7.1%
|
10.4%
|
3.3%pts
|
|
Greater China
|
(1.6)%
|
(1.4)%
|
0.2%pts
|
1.1%
|
2.4%
|
1.3%pts
|
a.
RevPAR (revenue per available room), ADR (average daily rate) and
occupancy are on a comparable basis, based on comparability as at
31 December 2025 and include hotels that have traded in all
months in both the current and the prior year. The principal
exclusions in deriving these measures are new openings, properties
under major refurbishments and removals. See 'Key performance
measures and non-GAAP measures' section for further information on
the definition of RevPAR.
|
|
Hotels
|
|
Rooms
|
||
|
Global hotel and room count
|
|
Change over
|
|
|
Change over
|
|
|
2025
|
2024
|
|
2025
|
2024
|
|
|
31 December
|
31 December
|
|
31 December
|
31 December
|
|
Analysed
by brand
|
|
|
|
|
|
|
Six Senses
|
27
|
-
|
|
2,067
|
117
|
|
Regent
|
11
|
-
|
|
3,212
|
-
|
|
InterContinental
|
242
|
15
|
|
77,027
|
3,243
|
|
Vignette Collection
|
31
|
11
|
|
7,256
|
3,291
|
|
Kimpton
|
85
|
8
|
|
16,208
|
2,177
|
|
Hotel Indigo
|
191
|
22
|
|
25,676
|
2,883
|
|
voco
|
124
|
37
|
|
25,227
|
4,851
|
|
Ruby
|
17
|
17
|
|
2,952
|
2,952
|
|
HUALUXE
|
24
|
2
|
|
6,426
|
424
|
|
Crowne Plaza
|
424
|
9
|
|
113,887
|
263
|
|
EVEN Hotels
|
46
|
13
|
|
6,896
|
1,814
|
|
Holiday
Inn Express
|
3,292
|
55
|
|
351,400
|
7,443
|
|
Holiday Inn
|
1,247
|
(2)
|
|
225,926
|
594
|
|
Garner
|
89
|
66
|
|
8,501
|
6,101
|
|
avid hotels
|
87
|
11
|
|
7,677
|
875
|
|
Atwell Suites
|
9
|
3
|
|
928
|
372
|
|
Staybridge Suites
|
350
|
15
|
|
38,287
|
1,764
|
|
Holiday
Inn Club Vacations
|
26
|
(4)
|
|
9,138
|
(730)
|
|
Candlewood Suites
|
423
|
31
|
|
37,552
|
2,735
|
|
Iberostar
Beachfront Resorts
|
62
|
7
|
|
21,001
|
1,415
|
|
Other
|
156
|
18
|
|
38,933
|
(3,532)
|
|
|
_____
|
_____
|
|
_____
|
_____
|
|
Total
|
6,963
|
334
|
|
1,026,177
|
39,052
|
|
|
_____
|
_____
|
|
_____
|
_____
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
Franchiseda
|
5,886
|
290
|
|
748,178
|
29,961
|
|
Managed
|
1,060
|
43
|
|
273,808
|
8,936
|
|
Owned
& leased
|
17
|
1
|
|
4,191
|
155
|
|
|
_____
|
_____
|
|
_____
|
_____
|
|
Total
|
6,963
|
334
|
|
1,026,177
|
39,052
|
|
|
_____
|
_____
|
|
_____
|
_____
|
a.
Includes exclusive partner hotels.
|
|
Hotels
|
|
Rooms
|
||
|
Global Pipeline
|
|
Change over
|
|
|
Change over
|
|
|
2025
|
2024
|
|
2025
|
2024
|
|
|
31 December
|
31 December
|
|
31 December
|
31 December
|
|
Analysed
by brand
|
|
|
|
|
|
|
Six Senses
|
39
|
1
|
|
2,946
|
51
|
|
Regent
|
12
|
3
|
|
2,210
|
223
|
|
InterContinental
|
104
|
3
|
|
26,734
|
1,042
|
|
Vignette Collection
|
45
|
10
|
|
7,087
|
698
|
|
Kimpton
|
69
|
8
|
|
13,288
|
1,155
|
|
Hotel Indigo
|
131
|
1
|
|
20,885
|
1,454
|
|
voco
|
108
|
18
|
|
21,453
|
5,825
|
|
Ruby
|
19
|
19
|
|
3,789
|
3,789
|
|
HUALUXE
|
23
|
(1)
|
|
6,040
|
(253)
|
|
Crowne Plaza
|
154
|
14
|
|
38,232
|
2,963
|
|
EVEN Hotels
|
26
|
(6)
|
|
4,861
|
(706)
|
|
Holiday
Inn Express
|
655
|
18
|
|
81,358
|
2,136
|
|
Holiday Inn
|
295
|
29
|
|
53,559
|
1,882
|
|
Garner
|
77
|
(17)
|
|
6,953
|
(1,814)
|
|
avid hotels
|
116
|
(21)
|
|
8,676
|
(1,973)
|
|
Atwell Suites
|
56
|
2
|
|
5,822
|
362
|
|
Staybridge Suites
|
150
|
(7)
|
|
16,618
|
(697)
|
|
Candlewood Suites
|
194
|
11
|
|
14,465
|
166
|
|
Iberostar
Beachfront Resorts
|
5
|
(2)
|
|
2,415
|
(32)
|
|
Other
|
14
|
(1)
|
|
2,135
|
(1,997)
|
|
|
_____
|
_____
|
|
_______
|
______
|
|
Total
|
2,292
|
82
|
|
339,526
|
14,274
|
|
|
_____
|
_____
|
|
_______
|
______
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
Franchiseda
|
1,635
|
37
|
|
198,623
|
7,018
|
|
Managed
|
657
|
46
|
|
140,903
|
7,411
|
|
Owned
& leased
|
-
|
(1)
|
|
-
|
(155)
|
|
|
_____
|
_____
|
|
_______
|
______
|
|
Total
|
2,292
|
82
|
|
339,526
|
14,274
|
|
|
_____
|
_____
|
|
_______
|
______
|
a.
Includes exclusive partner hotels.
Net system size increased by 4.0% year-on-year
to 1,026.2k rooms. During the year, 65.1k rooms
(443 hotels) opened, representing an increase
of 6.0k rooms (72 hotels) from the prior year.
Reflecting the continued focus on the quality of our
estate, 26.0k rooms (109 hotels) left the IHG system
in 2025, resulting in a removals rate of 2.6%, and an
increase of 7,831 rooms (4 hotels) compared
to 2024.
After adjusting for the impact of removing 7,092 rooms previously
affiliated with The Venetian Resort Las Vegas, net system size
increased by 4.7%, with a removals rate of 1.9%.
At the end of 2025, the global pipeline
totalled 339.5k rooms (2,292 hotels), an increase
of 14.3k rooms (82 hotels), as signings outpaced
openings and terminations.
During the year, 102.1k rooms (694 hotels) were
signed, including 6,741 Ruby rooms (36 hotels), of which
5,718 rooms (30 hotels) were part of the
initial agreement. Signings in 2025 represented a
4,188 rooms (20 hotels) decrease from the prior year,
which included 17,703 rooms (119 hotels) as part of
the initial NOVUM Hospitality agreement.
|
Regional performance reviews, system size and pipeline
analysis
|
|
AMERICAS
|
|
|
|
||
|
|
12 months ended 31 December
|
||||
|
Americas results
|
|
|
|
||
|
|
2025
|
2024
|
%
|
||
|
|
$m
|
$m
|
change
|
||
|
Revenue from the
reportable segmenta
|
|
|
|
||
|
Fee business
|
963
|
979
|
(1.6)
|
||
|
Owned & leased
|
166
|
162
|
2.5
|
||
|
|
_____
|
_____
|
_____
|
||
|
|
1,129
|
|
1,141
|
(1.1)
|
|
|
|
_____
|
_____
|
_____
|
||
|
Operating profit from the
reportable segmenta
|
|
|
|
||
|
Fee business
|
804
|
|
795
|
1.1
|
|
|
Owned & leased
|
32
|
|
33
|
(3.0)
|
|
|
|
_____
|
_____
|
_____
|
||
|
|
836
|
|
828
|
1.0
|
|
|
Operating exceptional items
|
(2
|
)
|
4
|
NMb
|
|
|
|
_____
|
_____
|
_____
|
||
|
Operating profit
|
834
|
832
|
0.2
|
||
|
|
_____
|
_____
|
_____
|
||
|
|
|
|
|
||
|
Americas Comparable
RevPARa movement
on previous year
|
12 months ended
31 December 2025
|
||||
|
Fee business
|
|
|
|
||
|
InterContinental
|
|
|
4.6%
|
||
|
Kimpton
|
|
|
1.3%
|
||
|
Hotel Indigo
|
|
|
0.3%
|
||
|
Crowne Plaza
|
|
|
0.5%
|
||
|
EVEN Hotels
|
|
|
(1.2)%
|
||
|
Holiday
Inn Express
|
|
|
0.2%
|
||
|
Holiday Inn
|
|
|
(0.7)%
|
||
|
avid hotels
|
|
|
(1.2)%
|
||
|
Staybridge
Suites
|
|
|
0.3%
|
||
|
Candlewood
Suites
|
|
|
(0.6)%
|
||
|
All brands
|
|
|
0.3%
|
||
|
|
|
|
|
||
|
Owned & leased
|
|
|
|
||
|
All brands
|
|
|
1.6%
|
||
Despite some turbulent trading conditions, RevPAR grew +0.3% (Q1
+3.5%, Q2 -0.5%, Q3 -0.9%, Q4 -1.4%), with occupancy -0.1%pts and
rate +0.5%. US RevPAR declined by -0.1% for the year, with growth
of +3.5% in Q1 moving to a decline of -0.9% in Q2 driven by the
shift in timing of Easter between March and April and the onset of
reduction in certain types of business and leisure travel, such as
lower international inbound demand and less government travel. US
RevPAR declined -1.6% in Q3 and -2.0% in Q4, the most recent
quarter facing a tougher year-over-year comparison due to
hurricane-related demand in 2024. Outside of the US, RevPAR for the
year grew +4.0%, with growth in each of Canada, Mexico and our
Latin American & Caribbean sub-region. Rooms revenue for the
overall region on a comparable hotel basis in 2025 was strongest
for Business bookings which were up +2% YOY, whilst Groups was down
-1% and Leisure -2% on 2024 levels.
Revenue from the reportable segmenta decreased
by $12m (-1.1%) to $1,129m. Operating profit increased by $2m to
$834m, including a $2m exceptional cost in relation to the global
efficiency programme, compared to an exceptional income of $4m in
the prior year (further information on exceptional items can be
found in note 5 to
the Financial Statements). Operating profit from the reportable
segmenta increased
by $8m (+1.0%) to $836m.
Fee business revenue decreased by $16m (-1.6%) to $963m. Whilst
RevPAR (which is on a comparable hotels and constant currency
basis) was up +0.3%, this was offset by lower revenue from a number
of non-comparable hotels including those exiting the system and
others undergoing renovation, small reductions in certain other fee
revenue areas, adverse currency movements and one fewer trading day
from the leap-year impact. There were $20m of incentive management
fees earned (2024: $21m). Fee business operating profit increased
by $9m (+1.1%) to $804m, supported by system growth and cost
efficiencies. This led to fee margina growing
to 83.4% compared to 81.2% in 2024.
Owned & leased revenue increased by $4m (+2.5%) to $166m, with
RevPAR up +1.6%, reflecting the specific trading environments
related to this small portfolio of just four hotels (only three of
which were comparable for RevPAR). Owned & leased operating
profit decreased by $1m (-3.0%) to $32m.
a.
Definitions for non-GAAP measures can be found in the 'Key
performance measures and non-GAAP measures' section, along with
reconciliations of these measures to the most directly comparable
line items within the Financial Statements.
b.
Percentage change considered not meaningful, such as where a
positive balance in the latest period is comparable to a negative
or zero balance in the prior period.
|
|
Hotels
|
|
Rooms
|
||
|
Americas hotel and room count
|
|
Change over
|
|
|
Change over
|
|
|
2025
|
2024
|
|
2025
|
2024
|
|
|
31 December
|
31 December
|
|
31 December
|
31 December
|
|
Analysed
by brand
|
|
|
|
|
|
|
Six Senses
|
2
|
-
|
|
81
|
-
|
|
Regent
|
1
|
-
|
|
167
|
-
|
|
InterContinental
|
48
|
3
|
|
17,055
|
783
|
|
Vignette Collection
|
3
|
1
|
|
805
|
214
|
|
Kimpton
|
62
|
1
|
|
11,289
|
206
|
|
Hotel Indigo
|
82
|
7
|
|
10,944
|
816
|
|
voco
|
28
|
9
|
|
2,993
|
928
|
|
Crowne Plaza
|
101
|
(3)
|
|
25,020
|
(1,336)
|
|
EVEN Hotels
|
27
|
5
|
|
3,586
|
464
|
|
Holiday
Inn Express
|
2,542
|
16
|
|
232,517
|
1,768
|
|
Holiday Inn
|
661
|
(16)
|
|
106,181
|
(3,345)
|
|
Garner
|
33
|
23
|
|
2,687
|
1,932
|
|
avid hotels
|
87
|
11
|
|
7,677
|
875
|
|
Atwell Suites
|
8
|
2
|
|
754
|
198
|
|
Staybridge Suites
|
327
|
15
|
|
34,474
|
1,701
|
|
Holiday
Inn Club Vacations
|
26
|
(4)
|
|
9,138
|
(730)
|
|
Candlewood Suites
|
417
|
25
|
|
36,921
|
2,104
|
|
Iberostar
Beachfront Resorts
|
26
|
2
|
|
9,443
|
176
|
|
Other
|
122
|
15
|
|
17,462
|
(5,554)
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Total
|
4,603
|
112
|
|
529,194
|
1,200
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
Franchiseda
|
4,432
|
113
|
|
493,389
|
1,883
|
|
Managed
|
167
|
(1)
|
|
34,468
|
(683)
|
|
Owned
& leased
|
4
|
-
|
|
1,337
|
-
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Total
|
4,603
|
112
|
|
529,194
|
1,200
|
|
|
_____
|
____
|
|
_______
|
______
|
a.
Includes exclusive partner hotels.
|
|
Hotels
|
|
Rooms
|
||
|
Americas Pipeline
|
|
Change over
|
|
|
Change over
|
|
|
2025
|
2024
|
|
2025
|
2024
|
|
|
31 December
|
31 December
|
|
31 December
|
31 December
|
|
Analysed
by brand
|
|
|
|
|
|
|
Six Senses
|
9
|
-
|
|
649
|
(11)
|
|
InterContinental
|
9
|
(2)
|
|
2,229
|
(557)
|
|
Vignette Collection
|
4
|
-
|
|
282
|
(193)
|
|
Kimpton
|
30
|
-
|
|
5,522
|
(163)
|
|
Hotel Indigo
|
24
|
(3)
|
|
3,071
|
(167)
|
|
voco
|
27
|
4
|
|
3,539
|
927
|
|
Crowne Plaza
|
6
|
-
|
|
1,127
|
83
|
|
EVEN Hotels
|
4
|
(4)
|
|
483
|
(466)
|
|
Holiday
Inn Express
|
336
|
(1)
|
|
31,478
|
(550)
|
|
Holiday Inn
|
65
|
-
|
|
7,744
|
(46)
|
|
Garner
|
50
|
7
|
|
4,145
|
650
|
|
avid hotels
|
116
|
(21)
|
|
8,676
|
(1,973)
|
|
Atwell Suites
|
50
|
(2)
|
|
4,968
|
(254)
|
|
Staybridge Suites
|
135
|
(7)
|
|
14,007
|
(967)
|
|
Candlewood Suites
|
184
|
9
|
|
13,175
|
(24)
|
|
Iberostar
Beachfront Resorts
|
4
|
(2)
|
|
2,144
|
(32)
|
|
Other
|
14
|
-
|
|
2,135
|
(217)
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Total
|
1,067
|
(22)
|
|
105,374
|
(3,960)
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
Franchiseda
|
1,023
|
(20)
|
|
98,598
|
(3,477)
|
|
Managed
|
44
|
(2)
|
|
6,776
|
(483)
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Total
|
1,067
|
(22)
|
|
105,374
|
(3,960)
|
|
|
_____
|
____
|
|
_______
|
______
|
a.
Includes exclusive partner hotels.
Gross system growth was +3.6%,
another year of acceleration, with the opening of 18.8k rooms (178
hotels) in the Americas region, of which 6.7k rooms (72 hotels)
opened in Q4. Openings in the year included 51 hotels across the
Holiday Inn Brand Family and a further 41 properties across the
Staybridge Suites and Candlewood Suites brands. There were 11 more
avid hotels added to reach 87 open (with 116 more in the pipeline),
and 23 Garner conversions took the open portfolio to 33 as it
rapidly developed in the two years since becoming franchise-ready,
with a further 50 in its pipeline. The voco brand added nine more
conversions taking its portfolio to 28, with 27 more in the
pipeline as it rolled out further across the region. Openings
across our Luxury & Lifestyle brands included three more for
InterContinental - Indianapolis, Monterrey and Lima - the latter a
debut for the brand in Peru which was also the case with openings
for Hotel Indigo and Vignette Collection in that
market. Conversions
accounted for 57% of all room openings in the
year.
Net system size grew +0.2% for the year on a reported basis, after
removals of 17.6k rooms (66 hotels) in the year representing 3.3%
of the system size at the start of the year. Adjusting for the
impact of removing 7.1k rooms previously affiliated with The
Venetian Resort Las Vegas, net system size grew +1.6%, with a
removal rate of +2.0%.
There were 26.6k rooms (268 hotels) signed during the year,
including 9.5k rooms (92 hotels) during Q4. Strong development
activity continued for our Essentials and Suites brands - there
were 88 signings across the Holiday Inn Brand Family and 79 across
Staybridge, Candlewood and Atwell. Ongoing demand for conversions
also saw 32 signings for Garner and 16 for voco, including the
first resort for the voco brand in Jamaica and a portfolio of six
hotels in Mexico. Examples such as voco Sandpiper Port St. Lucie
(the brand's first all-inclusive property in the US), voco
Kissimmee Orlando and numerous other resort-focused properties for
Holiday Inn reflect signings that can quickly become openings in a
small number of months, with other notable conversions including
Crowne Plaza Merida, Mexico, and Hotel Indigo Myrtle Beach. There
were 12 signings across our Luxury & Lifestyle brands
including: a Six Senses resort and residences in southern Utah;
Kimpton's entry into Napa Valley, California, and the Kimpton
Miralina Resort & Villas in Scottsdale, Arizona; two further
signings for each of InterContinental and the Vignette Collection;
and a further five signings added to the Hotel Indigo
pipeline.
The pipeline stands at 105.4k rooms (1,067 hotels), which
represents 20% of the current system size in the
region.
EMEAA
|
|
12 months ended 31 December
|
|||||
|
EMEAA results
|
|
|
|
|||
|
|
2025
|
2024
|
%
|
|||
|
|
$m
|
$m
|
change
|
|||
|
Revenue from the reportable segmenta
|
|
|
|
|||
|
Fee business
|
433
|
|
395
|
|
9.6
|
|
|
Owned
& leased
|
378
|
|
353
|
|
7.1
|
|
|
|
_____
|
_____
|
_____
|
|||
|
|
811
|
|
748
|
|
8.4
|
|
|
|
_____
|
_____
|
_____
|
|||
|
Operating profit from the reportable segmenta
|
|
|
|
|||
|
Fee business
|
292
|
|
258
|
|
13.2
|
|
|
Owned
& leased
|
11
|
|
12
|
|
(8.3
|
)
|
|
|
_____
|
_____
|
_____
|
|||
|
|
303
|
|
270
|
|
12.2
|
|
|
Operating
exceptional items
|
(13
|
)
|
(4
|
)
|
225.0
|
|
|
|
_____
|
_____
|
_____
|
|||
|
Operating profit
|
290
|
|
266
|
|
9.0
|
|
|
|
_____
|
_____
|
_____
|
|||
|
EMEAA comparable RevPAR movement on previous year
|
12 months ended
31 December 2025
|
||
|
Fee business
|
|
||
|
|
Six Senses
|
16.4
%
|
|
|
|
InterContinental
|
7.0
%
|
|
|
|
Hotel Indigo
|
3.4
%
|
|
|
|
voco
|
6.7
%
|
|
|
|
Crowne Plaza
|
5.4
%
|
|
|
|
Holiday Inn Express
|
1.4
%
|
|
|
|
Holiday Inn
|
2.4
%
|
|
|
|
Staybridge Suites
|
3.3
%
|
|
|
|
All Brands
|
4.7
%
|
|
|
|
|
|
|
|
Owned & leased
|
|
||
|
|
All Brands
|
2.1
%
|
|
|
|
|
|
|
RevPAR grew +4.6%, with occupancy +1.6%pts and rate +2.4%. Strong
RevPAR growth of +5.0% in Q1 was followed by +3.0% in Q2, in part
due to fewer travel-related international events compared to the
prior year. RevPAR grew +2.8% in Q3 and then strongly
re-accelerated to +7.1% in Q4 driven broadly evenly by increases in
occupancy and rate and with good growth in each of Business,
Leisure and Groups demand drivers. By major geographic markets,
RevPAR for the year was +1.1% in the UK, +4.2% in Continental
Europe, +5.5% for the East Asia & Pacific region and +8.8% in
the Middle East. Rooms
revenue for the overall region on a comparable hotel basis in 2025
was strongest for Business demand which was up +5% YOY, with Groups
bookings up +4% and Leisure up +3% on 2024
levels.
Revenue from the reportable segmenta increased
by $63m (+8.4%) to $811m. Operating
profit increased by $24m to $290m,
including a $13m exceptional cost in relation to the
global efficiency programme and commercial litigation and disputes
(further information on exceptional items can be found in
note 5 to the Financial Statements). Operating profit
from the reportable segmenta increased
by $33m (+12.2%) to $303m.
Fee business revenue increased by $38m (+9.6%) to $433m, driven by
RevPAR (which is on a comparable hotels and constant currency
basis) up +4.7% and the fees added from net system growth. There
were $134m of incentive management fees earned (2024: $118m). Fee
business operating profit increased by $34m (+13.2%) to $292m and
fee margina increased
to 67.4% compared to 65.3% in 2024, with positive operating
leverage driven by the trading performance, system growth and cost
efficiencies.
Owned & leased revenue increased by $25m (+7.1%)
to $378m, with RevPAR on a comparable hotels and constant
currency basis up +2.1%. Reflecting the trading conditions, cost
bases and variable rent structures of this largely urban-centred
portfolio of 13 hotels, an operating profit of $11m was
achieved compared to $12m in 2024.
a.
Definitions for non-GAAP measures can be found in the 'Key
performance measures and non-GAAP measures' section, along with
reconciliations of these measures to the most directly comparable
line items within the Financial Statements..
|
|
Hotels
|
|
Rooms
|
||
|
EMEAA hotel and room count
|
|
Change over
|
|
|
Change over
|
|
|
2025
|
2024
|
|
2025
|
2024
|
|
|
31 December
|
31 December
|
|
31 December
|
31 December
|
|
Analysed
by brand
|
|
|
|
|
|
|
Six Senses
|
24
|
-
|
|
1,856
|
117
|
|
Regent
|
4
|
-
|
|
991
|
-
|
|
InterContinental
|
128
|
7
|
|
35,341
|
1,396
|
|
Vignette Collection
|
21
|
8
|
|
4,666
|
2,557
|
|
Kimpton
|
18
|
5
|
|
3,685
|
1,187
|
|
Hotel Indigo
|
74
|
8
|
|
9,037
|
833
|
|
voco
|
68
|
17
|
|
16,862
|
2,254
|
|
Ruby
|
17
|
17
|
|
2,952
|
2,952
|
|
Crowne Plaza
|
185
|
4
|
|
43,796
|
(94)
|
|
Holiday
Inn Express
|
363
|
3
|
|
53,601
|
766
|
|
Holiday Inn
|
426
|
1
|
|
78,097
|
702
|
|
Garner
|
56
|
43
|
|
5,814
|
4,169
|
|
Staybridge Suites
|
23
|
-
|
|
3,813
|
63
|
|
Candlewood Suites
|
6
|
6
|
|
631
|
631
|
|
Iberostar
Beachfront Resorts
|
36
|
5
|
|
11,558
|
1,239
|
|
Other
|
29
|
5
|
|
14,902
|
2,356
|
|
|
_____
|
____
|
|
_______
|
______
|
|
All Brands
|
1,478
|
129
|
|
287,602
|
21,128
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
Franchiseda
|
1,025
|
94
|
|
170,049
|
13,511
|
|
Managed
|
440
|
34
|
|
114,699
|
7,462
|
|
Owned
& leased
|
13
|
1
|
|
2,854
|
155
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Total
|
1,478
|
129
|
|
287,602
|
21,128
|
|
|
_____
|
____
|
|
_______
|
______
|
a.
Includes exclusive partner hotels.
|
|
Hotels
|
|
Rooms
|
||
|
EMEAA Pipeline
|
|
Change over
|
|
|
Change over
|
|
|
2025
|
2024
|
|
2025
|
2024
|
|
|
31 December
|
31 December
|
|
31 December
|
31 December
|
|
Analysed
by brand
|
|
|
|
|
|
|
Six Senses
|
29
|
1
|
|
2,225
|
44
|
|
Regent
|
10
|
3
|
|
1,683
|
223
|
|
InterContinental
|
64
|
4
|
|
15,694
|
1,168
|
|
Vignette Collection
|
32
|
7
|
|
4,494
|
115
|
|
Kimpton
|
21
|
6
|
|
3,550
|
1,296
|
|
Hotel Indigo
|
54
|
5
|
|
9,185
|
1,977
|
|
voco
|
59
|
9
|
|
12,463
|
3,047
|
|
Ruby
|
19
|
19
|
|
3,789
|
3,789
|
|
Crowne Plaza
|
73
|
14
|
|
17,202
|
3,181
|
|
EVEN Hotels
|
2
|
2
|
|
555
|
555
|
|
Holiday
Inn Express
|
100
|
11
|
|
15,699
|
1,360
|
|
Holiday Inn
|
127
|
13
|
|
23,347
|
528
|
|
Garner
|
27
|
(24)
|
|
2,808
|
(2,464)
|
|
Staybridge Suites
|
15
|
-
|
|
2,611
|
270
|
|
Candlewood Suites
|
10
|
2
|
|
1,290
|
190
|
|
Iberostar
Beachfront Resorts
|
1
|
-
|
|
271
|
-
|
|
Other
|
-
|
(1)
|
|
-
|
(1,780)
|
|
|
____
|
____
|
|
______
|
______
|
|
All Brands
|
643
|
71
|
|
116,866
|
13,499
|
|
|
____
|
____
|
|
______
|
______
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
Franchiseda
|
289
|
25
|
|
42,730
|
5,158
|
|
Managed
|
354
|
47
|
|
74,136
|
8,496
|
|
Owned
& leased
|
-
|
(1)
|
|
-
|
(155)
|
|
|
____
|
____
|
|
______
|
______
|
|
Total
|
643
|
71
|
|
116,866
|
13,499
|
|
|
____
|
____
|
|
______
|
______
|
a.
Includes exclusive partner hotels.
Gross system growth was +9.0% for the year with the opening of
24.1k rooms (147 hotels) in the EMEAA region, of which 8.0k rooms
(40 hotels) opened in Q4. Openings in the year included the first
17 Ruby hotels (3.0k rooms) added into IHG's system in the initial
phase of integration. A further 38 conversions (3.8k rooms) as part
of the NOVUM Hospitality agreement were added, taking the total to
date to 96 out of the total of 119 open and pipeline hotels at the
time of the initial agreement. There were further conversion
openings within the 17 openings for the voco brand (including the
first in Thailand) and eight for Vignette Collection (including
Ciel Dubai Marina, the world's tallest hotel). There were 20 other
openings across our Luxury & Lifestyle brands, including:
InterContinental Table Bay Cape Town, InterContinental Brisbane and
InterContinental the Red Sea Resort in Saudi Arabia; and Kimpton
Main Frankfurt (a debut for the brand in Germany) and Kimpton
Atlantico Algarve, Kimpton Naluria Kuala Lumpur and Kimpton KAFD
Riyadh marking further country debuts. There were 15 Holiday Inn
Brand Family openings (including the first dual-branded Holiday Inn
in Australia, alongside Hotel Indigo), and nine for Crowne Plaza
including Lucknow which marked the 50th open hotel in India.
Conversions accounted for 63% of all room openings in the
year.
Net system size grew +7.9% for the year, after removals
of 3.0k rooms
(18 hotels)
representing a 1.1% removal
rate. The NOVUM Hospitality properties contributed +1.4% to the
system growth for the year, and the initial Ruby additions
contributed +1.1%.
There were 43.4k rooms (248 hotels) signed during the year,
including 11.5k rooms (69 hotels) during Q4. There were 30 Ruby
signings (5.7k rooms) for the 20 open and 10 pipeline hotels at the
time of acquisition, with six further Ruby signings achieved since
then. There were 23 signings for the voco brand and 19 for Garner,
the latter including Garner Edinburgh Haymarket which reflected the
brand's ability to deliver a high-quality conversion in just three
months from signing to opening. The Garner signings also included
firsts for the brand in India, Thailand and Italy. Within 62
signings across IHG's Luxury & Lifestyle brands, 25% of all
signings in the year, these included: Six Senses Bangkok, Thailand,
and Myoko, Japan; a further 13 for InterContinental (including two
each in Japan and India); debuts for Kimpton in the UAE, Morocco
and Austria; and 14 signings for the Vignette Collection across
almost as many countries which contributed to the overall strength
of conversion signings for the region. The attraction to owners of
our established brands was also reflected in 24 Crowne Plaza
signings (including Marne-la-Vallée near Disneyland Paris), 29
for Holiday Inn Express and 39 for Holiday Inn, whilst two signings
for EVEN Hotels will introduce that brand to the Middle East and
the wider EMEAA region. Other flagship signings included a
triple-branded project (InterContinental, Kimpton and Holiday Inn)
near Universal Studios Japan.
The pipeline stands at 116.9k rooms (643 hotels), which represents
41% of the current system size in the region.
GREATER CHINA
|
|
12 months ended 31 December
|
|||||
|
Greater China results
|
2025
|
2024
|
%
|
|||
|
|
$m
|
$m
|
change
|
|||
|
Revenue from the reportable segmenta
|
|
|
|
|||
|
Fee business
|
165
|
|
161
|
|
2.5
|
|
|
|
_____
|
_____
|
_____
|
|||
|
|
165
|
|
161
|
|
2.5
|
|
|
|
_____
|
_____
|
_____
|
|||
|
Operating profit from the reportable segmenta
|
|
|
|
|||
|
Fee business
|
99
|
|
98
|
|
1.0
|
|
|
|
_____
|
_____
|
_____
|
|||
|
Operating profit
|
99
|
|
98
|
|
1.0
|
|
|
|
_____
|
____
|
_____
|
|||
|
Greater China comparable RevPAR movement on previous
year
|
12 months ended
31 December 2025
|
|
|
|
|
Fee business
|
|
|
Regent
|
19.1%
|
|
InterContinental
|
(2.0)%
|
|
Hotel Indigo
|
5.1%
|
|
HUALUXE
|
(1.6)%
|
|
Crowne Plaza
|
(2.9)%
|
|
Holiday
Inn Express
|
(6.5)%
|
|
Holiday Inn
|
(4.9)%
|
|
All
brands
|
(1.6)%
|
RevPAR was -1.6%, with occupancy +0.5%pts higher and rate -2.4%
lower. Q1 RevPAR of -3.5% was followed by -3.0% in Q2, further
improving sequentially to -1.8% in Q3 and then returning to growth
of +1.1% in Q4 with notable improvement in Leisure demand. RevPAR
for the year was -0.3% in Tier 1 cities and -4.4% in Tier 2-4
cities. Rooms
revenue for the overall region on a comparable hotel basis in 2025
was broadly flat for Business and Leisure, while Groups bookings
were -4% on 2024 levels.
Revenue from the reportable segmenta was $4m higher at $165m,
with incremental revenue from system growth more than offsetting
the effect of RevPAR decline in the comparable estate and lower fee
streams on reduced non-room revenue. There were $36m of
incentive management fees earned (2024: $39m). Fee
margina reduced
to 60.0% compared to 60.9% in 2024, reflecting
strategic one-off cost investments during the year and the
reduction in incentive management fees. Despite these temporary
headwinds, supported by the benefits of our increasing scale and
cost efficiencies in the region, operating profit increased
by $1m (+1.0%) to $99m, underscoring the
resilience of the region's operating model.
a.
Definitions for non-GAAP measures can be found in the 'Key
performance measures and non-GAAP measures' section, along with
reconciliations of these measures to the most directly comparable
line items within the Financial Statements.
|
|
Hotels
|
|
Rooms
|
||
|
Greater China hotel and room count
|
|
Change over
|
|
|
Change over
|
|
|
2025
|
2024
|
|
2025
|
2024
|
|
|
31 December
|
31 December
|
|
31 December
|
31 December
|
|
Analysed
by brand
|
|
|
|
|
|
|
Six Senses
|
1
|
-
|
|
130
|
-
|
|
Regent
|
6
|
-
|
|
2,054
|
-
|
|
InterContinental
|
66
|
5
|
|
24,631
|
1,064
|
|
Vignette Collection
|
7
|
2
|
|
1,785
|
520
|
|
Kimpton
|
5
|
2
|
|
1,234
|
784
|
|
Hotel Indigo
|
35
|
7
|
|
5,695
|
1,234
|
|
voco
|
28
|
11
|
|
5,372
|
1,669
|
|
HUALUXE
|
24
|
2
|
|
6,426
|
424
|
|
Crowne Plaza
|
138
|
8
|
|
45,071
|
1,693
|
|
EVEN Hotels
|
19
|
8
|
|
3,310
|
1,350
|
|
Holiday
Inn Express
|
387
|
36
|
|
65,282
|
4,909
|
|
Holiday Inn
|
160
|
13
|
|
41,648
|
3,237
|
|
Atwell Suites
|
1
|
1
|
|
174
|
174
|
|
Other
|
5
|
(2)
|
|
6,569
|
(334)
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Total
|
882
|
93
|
|
209,381
|
16,724
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
Franchised
|
429
|
83
|
|
84,740
|
14,567
|
|
Managed
|
453
|
10
|
|
124,641
|
2,157
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Total
|
882
|
93
|
|
209,381
|
16,724
|
|
|
_____
|
____
|
|
_______
|
______
|
|
|
Hotels
|
|
Rooms
|
|
|
|
Greater China Pipeline
|
|
Change over
|
|
|
Change over
|
|
|
2025
|
2024
|
|
2025
|
2024
|
|
|
31 December
|
31 December
|
|
31 December
|
31 December
|
|
Analysed
by brand
|
|
|
|
|
|
|
Six Senses
|
1
|
-
|
|
72
|
18
|
|
Regent
|
2
|
-
|
|
527
|
-
|
|
InterContinental
|
31
|
1
|
|
8,811
|
431
|
|
Vignette Collection
|
9
|
3
|
|
2,311
|
776
|
|
Kimpton
|
18
|
2
|
|
4,216
|
22
|
|
Hotel Indigo
|
53
|
(1)
|
|
8,629
|
(356)
|
|
voco
|
22
|
5
|
|
5,451
|
1,851
|
|
HUALUXE
|
23
|
(1)
|
|
6,040
|
(253)
|
|
Crowne Plaza
|
75
|
-
|
|
19,903
|
(301)
|
|
EVEN Hotels
|
20
|
(4)
|
|
3,823
|
(795)
|
|
Holiday
Inn Express
|
219
|
8
|
|
34,181
|
1,326
|
|
Holiday Inn
|
103
|
16
|
|
22,468
|
1,400
|
|
Atwell
Suites
|
6
|
4
|
|
854
|
616
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Total
|
582
|
33
|
|
117,286
|
4,735
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
Franchised
|
323
|
32
|
|
57,295
|
5,337
|
|
Managed
|
259
|
1
|
|
59,991
|
(602)
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Total
|
582
|
33
|
|
117,286
|
4,735
|
|
|
_____
|
____
|
|
_______
|
______
|
Gross system growth was +11.5% for the year with the
opening of 22.2k rooms (118 hotels) in the Greater
China region, another record level of hotel openings, of
which 4.5k (25 hotels) opened in Q4. Early in 2025
we celebrated our 800th opening
and IHG's 50th anniversary
in Greater China, and the milestone of 200,000 rooms open in our
system was also reached.
Openings in the year saw 67 for the Holiday Inn Brand Family
(including key locations such as Holiday Inn Express Taipei Train
Station and Holiday Inn Shanghai Pudong Airport), 12 Crowne Plaza
properties, and a notably strong year of openings for EVEN Hotels
with eight properties added which increased its portfolio to
19.
As our other brands build scale in the region, there were 11
further voco properties opened and 16 across our Luxury &
Lifestyle brands, including a Kimpton and a Hotel Indigo at Hainan
Clear Water Bay, and the Hangzhou Wulin GDA Hotel joining the
Vignette Collection. Conversions accounted for 36% of all room
openings in the year.
Net system size
grew +8.7% for the year, after removals
of 5.5k rooms (25 hotels) representing
a 2.8% removal rate which has been temporarily elevated
and is expected to normalise back down over the coming
years.
There were 32.0k rooms across a
record 178 hotels signed during the year,
including 7.3k rooms (39 hotels) during Q4. During
the year there were 42 hotel signings for Holiday Inn and a
particularly strong 71 for Holiday Inn Express, growing their
pipelines to 103 and 219, respectively, and 13 signings for Crowne
Plaza which has a pipeline of 75 properties. The Atwell Suites
brand was launched in the region towards the end of the prior year,
the first opening in 2025 and another five signings were achieved.
There were 23 signings across our Luxury & Lifestyle brands,
including eight more for InterContinental. Our six Luxury &
Lifestyle brands represent around 20% of both the existing system
size and the pipeline in the region.
The pipeline stands at 117.3k rooms (582 hotels),
which represents 56% of the current system size in the
region.
CENTRAL
|
|
12 months ended 31 December
|
|||
|
|
|
|
|
|
|
|
2025
|
2024
|
%
|
|
|
Central results
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
Revenue from the reportable segmenta
|
|
|
|
|
|
Fee
business
|
336
|
239
|
|
40.6
|
|
Insurance
activities
|
27
|
23
|
|
17.4
|
|
|
_____
|
_____
|
_____
|
|
|
|
363
|
262
|
|
38.5
|
|
|
_____
|
_____
|
_____
|
|
|
Gross costs
|
|
|
|
|
|
Fee
business
|
(300)
|
(305
|
)
|
(1.6)
|
|
Insurance
activities
|
(36)
|
(29
|
)
|
24.1
|
|
|
_____
|
_____
|
_____
|
|
|
|
(336)
|
(334
|
)
|
0.6
|
|
|
_____
|
_____
|
_____
|
|
|
Operating profit/(loss) from the reportable segmenta
|
|
|
|
|
|
Fee
business
|
36
|
(66
|
)
|
NMb
|
|
Insurance
activities
|
(9)
|
(6
|
)
|
50.0
|
|
|
_____
|
_____
|
_____
|
|
|
|
27
|
(72
|
)
|
NMb
|
|
Operating
exceptional items
|
(6)
|
-
|
|
NMb
|
|
|
_____
|
_____
|
_____
|
|
|
Operating
profit/(loss)
|
21
|
(72
|
)
|
NMb
|
|
|
_____
|
_____
|
_____
|
|
Central fee business revenue is mainly comprised of technology fee
income, co-brand licensing fees and a portion of revenue from the
consumption of certain IHG One Rewards points. Central revenue
additionally includes revenue recognised from insurance activities
relating to the managed hotel insurance programme. Central revenue
increased by $101m (38.5%) to $363m. This was primarily due to
incremental fees from previous changes in the arrangements related
to the US co-brand credit card agreements and from the sale of
certain loyalty points (together with certain other ancillary
revenues). These revenue streams were anticipated to contribute
within IHG's results from reportable segmentsa an
incremental ~$40m and ~$25m, respectively, with these step-changes
achieved in 2025, along with additional underlying
growth.
Gross costs increased by $2m (0.6%) year on year, driven
by significant individual claims in the insurance programme, which
were partially offset by lower costs in the fee business driven by
our ongoing focus on efficiencies.
The resulting $27m operating profit from the reportable
segmenta was an
increase of $99m year-on-year. Operating profit of $21m
included a $6m exceptional cost in relation to the global
efficiency programme (further information on exceptional items can
be found in note 5 to the Financial
Statements).
a.
Definitions for non-GAAP measures can be found in the 'Key
performance measures and non-GAAP measures' section, along with
reconciliations of these measures to the most directly comparable
line items within the Financial Statements.
b.
Percentage change considered not meaningful, such as where a
positive balance in the latest period is comparable to a negative
or zero balance in the prior period.
|
Key performance measures and non-GAAP measures
|
In addition to performance measures directly observable in the
Financial Statements (International Financial Reporting Standards
"IFRS" measures), certain financial measures are presented when
discussing the Group's performance which are not measures of
financial performance or liquidity under IFRS. In management's
view, these measures provide investors and other stakeholders with
an enhanced understanding of IHG's operating performance,
profitability, financial strength and funding requirements. These
measures do not have standardised meanings under IFRS, and
companies do not necessarily calculate these in the same way as
each other. As these measures exclude certain items (for example
the costs of individually significant legal cases or commercial
disputes) they may be materially different to the measures
prescribed by IFRS and may result in a more favourable view of
performance. Accordingly, they should be viewed as complementary
to, and not as a substitute for, the measures prescribed by IFRS
and as included in the Financial Statements.
Global revenue per available room (RevPAR) growth
RevPAR is the primary metric used by management to track hotel
performance across regions and brands. RevPAR is also a commonly
used performance measure in the hotel industry.
RevPAR comprises IHG's system rooms revenue divided by the number
of room nights available and can be derived from occupancy rate
multiplied by average daily rate (ADR). ADR is rooms revenue
divided by the number of room nights sold.
References to RevPAR, occupancy and ADR are presented on a
comparable basis, comprising groupings of hotels that have traded
in all months in both the current and comparable year. The
principal exclusions in deriving this measure are new hotels
(including those acquired), hotels closed for major refurbishment
and hotels sold in either of the comparable years.
RevPAR and ADR are quoted at a constant US$ exchange rate, in order
to allow a better understanding of the comparable year-on-year
trading performance excluding distortions created by fluctuations
in currency movements.
Total gross revenue from hotels in IHG's system
Total gross revenue is revenue not wholly attributable to IHG,
however, management believes this measure is meaningful to
investors and other stakeholders as it provides a measure of system
performance, giving an indication of the strength of IHG's brands
and the combined impact of IHG's growth strategy and RevPAR
performance.
Total gross revenue refers to revenue which IHG has a role in
driving and from which IHG derives an income stream.
Total gross revenue comprises:
●
Total rooms revenue from franchised hotels;
●
Total hotel revenue from managed and exclusive partner hotels
including food and beverage, meetings and other revenues,
reflecting the value driven by IHG and the base upon which fees are
typically earned; and
●
Total hotel revenue from owned & leased hotels.
Other than total hotel revenue from owned & leased hotels,
total gross revenue is not revenue attributable to IHG as these
managed, franchised and exclusive partner hotels are owned by third
parties.
Total gross revenue is used to describe this measure as it aligns
with terms used in the Group's management, franchise and exclusive
partner agreements and therefore is well understood by owners and
other stakeholders.
Revenue and operating profit measures
Revenue and operating profit from (1) fee business, (2) owned &
leased hotels, and (3) insurance activities are described as
'revenue from reportable segments' and 'operating profit from
reportable segments', respectively, within note 3 to the Financial
Statements. These measures are presented insofar as they relate to
each of the Group's regions and its Central functions. Management
believes revenue and operating profit from reportable segments are
meaningful to investors and other stakeholders as they exclude the
following elements and reflect how management monitors the
business:
●
System Fund and reimbursables - the System Fund is not managed to
generate a surplus or deficit for IHG over the longer term; it is
managed for the benefit of the hotels within the IHG system. The
System Fund is operated to collect and administer cash assessments
from hotel owners for specific purposes of use including marketing,
the Guest Reservation System, certain hotel services and the
Group's loyalty programme. There is a cost equal to reimbursable
revenues so there is no profit impact. Cost reimbursements are not
applicable to all hotels, and growth in these revenues is not
reflective of growth in the performance of the Group. As such,
management does not include these revenues in their analysis of
results.
●
Exceptional items - these are identified by virtue of their size,
nature or incidence with consideration given to consistency of
treatment with prior years (including items that impact more than
one reporting period) and between gains and losses. Examples of
exceptional items include, but are not restricted to, gains and
losses on the disposal of assets, impairment charges and reversals,
the costs of individually significant legal cases or commercial
disputes, and reorganisation costs. As each item is different in
nature and scope, there will be little continuity in the detailed
composition and size of the reported amounts which affect
performance in successive periods. Separate disclosure of these
amounts facilitates the understanding of performance including and
excluding such items. Further detail of amounts presented as
exceptional is included in notes 5 and 6 to the Financial
Statements.
In further discussing the Group's performance in respect of revenue
and operating profit, additional non-IFRS measures are used and
explained further below:
●
Underlying revenue;
●
Underlying operating profit;
●
Underlying fee revenue; and
●
Fee margin.
Operating profit measures are, by their nature, before interest and
tax. The Group's reported operating profit additionally excludes
remeasurement gains/losses on contingent purchase consideration,
which relates to financing of acquisitions. Management believes
such measures are useful for investors and other stakeholders when
comparing performance across different companies as interest and
tax can vary widely across different industries or among companies
within the same industry. For example, interest expense can be
highly dependent on a company's capital structure, debt levels and
credit ratings. In addition, the tax positions of companies can
vary because of their differing abilities to take advantage of tax
benefits and because of the tax policies of the various
jurisdictions in which they operate.
Although management believes these measures are useful to investors
and other stakeholders in assessing the Group's ongoing financial
performance and provide improved comparability between periods,
there are limitations in their use as compared to measures of
financial performance under IFRS. As such, they should not be
considered in isolation or viewed as a substitute for IFRS
measures. In addition, these measures may not necessarily be
comparable to other similarly titled measures of other companies
due to potential inconsistencies in the methods of
calculation.
Underlying revenue and underlying operating profit
These measures adjust revenue from reportable segments and
operating profit from reportable segments, respectively, to exclude
revenue and operating profit generated by owned & leased hotels
which have been disposed, and significant liquidated damages, which
are not comparable year-on-year and are not indicative of the
Group's ongoing profitability. The revenue and operating profit of
current year acquisitions are also excluded as these obscure
underlying business results and trends when comparing to the prior
year. In addition, in order to remove the impact of fluctuations in
foreign exchange, which would distort the comparability of the
Group's operating performance, prior year measures are restated at
constant currency using current year exchange rates.
Management believes these are meaningful to investors and other
stakeholders to better understand comparable year-on-year trading
and enable assessment of the underlying trends in the Group's
financial performance.
Underlying fee revenue growth
Underlying fee revenue is used to calculate underlying fee revenue
growth. Underlying fee revenue is calculated on the same basis as
underlying revenue as described above but for the fee business
only.
Management believes underlying fee revenue is meaningful to
investors and other stakeholders as an indicator of IHG's ability
to grow the core fee-based business, aligned to IHG's asset-light
strategy.
Fee margin
Fee margin is presented at actual exchange rates and is a measure
of the profit arising from fee revenue. Fee margin is calculated by
dividing fee operating profit by fee revenue. Fee revenue and fee
operating profit are calculated from revenue from reportable
segments and operating profit from reportable segments, as defined
above, adjusted to exclude revenue and operating profit from the
Group's owned & leased hotels as well as from insurance
activities and significant liquidated damages.
Management believes fee margin is meaningful to investors and other
stakeholders as an indicator of the sustainable long-term growth in
the profitability of IHG's core fee-based business, as the scale of
IHG's operations increases with growth in IHG's system
size.
Adjusted interest
Adjusted interest is presented before exceptional items and the
following items of interest which are recorded within the System
Fund:
●
Interest income is recorded in the System Fund on the outstanding
cash balance relating to the IHG loyalty programme. These interest
payments are recognised as interest expense for IHG.
●
Other components of System Fund interest income and expense,
including capitalised interest, lease interest expense and interest
income on overdue receivables.
Given results related to the System Fund are excluded from adjusted
measures used by management, these are excluded from adjusted
interest and adjusted earnings per ordinary share (see
below).
Management believes adjusted interest is a meaningful measure for
investors and other stakeholders as it provides an indication of
the comparable year-on-year expense associated with financing the
business including the interest on any balance held on behalf of
the System Fund.
Adjusted tax
Adjusted tax excludes the impact of foreign exchange gains/losses,
exceptional items, the System Fund and remeasurement gains/losses
on contingent consideration.
Foreign exchange gains/losses vary year on year depending on the
movement in exchange rates, and remeasurement gains/losses on
contingent consideration and exceptional items also vary year on
year. These can impact the current year's tax charge. The System
Fund (including interest and tax) is not managed to a surplus or
deficit for IHG over the longer term and is, in general, not
subject to tax. Management believes removing these from both profit
and tax provides a better view of the Group's underlying tax rate
on ordinary operations and aids comparability year on year, thus
providing a more meaningful understanding of the Group's ongoing
tax charge.
Adjusted earnings per ordinary share
Adjusted earnings per ordinary share adjusts the profit available
for equity holders used in the calculation of basic earnings per
share to remove the System Fund and reimbursable result, interest
attributable to the System Fund and foreign exchange gains/losses,
change in remeasurement gains/losses on contingent purchase
consideration, exceptional items, and the related tax impacts of
such adjustments and exceptional tax.
Management believes that adjusted earnings per share is a
meaningful measure for investors and other stakeholders as it
provides a more comparable earnings per share measure aligned with
how management monitors the business.
Net debt
Net debt is used in the monitoring of the Group's liquidity and
capital structure and is used by management in the calculation of
the leverage ratios with the objective of maintaining an investment
grade credit rating. Net debt is used by investors and other
stakeholders to evaluate the financial strength of the
business.
Net debt comprises loans and other borrowings, lease liabilities,
the principal amounts payable and receivable on maturity of
derivatives swapping debt values, less cash and cash equivalents. A
summary of the composition of net debt is included in note 10 to
the Financial Statements.
Adjusted EBITDA
One of the key measures used by the Group in monitoring its debt
and capital structure is the net debt: adjusted EBITDA ratio, which
is managed with the objective of maintaining an investment grade
credit rating. The Group has a stated aim of targeting this ratio
at 2.5-3.0x. Adjusted EBITDA is defined as cash flow from
operations, excluding cash flows relating to exceptional items,
cash flows arising from the System Fund and reimbursable result,
other non-cash adjustments to operating profit or loss, working
capital and other adjustments, and contract acquisition
costs.
Adjusted EBITDA is useful to investors as an approximation of
operational cash flow generation.
Adjusted free cash flow, gross capital expenditure, net capital
expenditure
These measures have limitations as they omit certain components of
the overall cash flow statement. They are not intended to represent
IHG's residual cash flow available for discretionary expenditures,
nor do they reflect the Group's future capital commitments. These
measures are used by many companies, but there can be differences
in how each company defines the terms, limiting their usefulness as
a comparative measure. Therefore, it is important to view these
measures only as a complement to the Group statement of cash
flows.
Adjusted free cash flow
Adjusted free cash flow is net cash from operating activities
adjusted for: (1) the inclusion of the cash outflow arising from
the purchase of shares by employee share trusts reflecting the
requirement to satisfy incentive schemes which are linked to
operating performance; (2) the inclusion of gross maintenance
capital expenditure; (3) the exclusion of cash flows relating to
exceptional items; and (4) where cash flows are split between
categories in the Group statement of cash flows, cash flows from
investing or financing activities may be included or excluded in
adjusted free cash flow to maintain consistency of the measure.
This includes: (a) the inclusion of the principal element of lease
payments; (b) the exclusion of payments of deferred or contingent
purchase consideration included within net cash from operating
activities; (c) the exclusion of interest receipts related to owner
loans within net cash from operating activities (d) the exclusion
of recyclable investments in contract acquisition costs within net
cash from operating activities; (e) the inclusion of payments and
repayments related to investments supporting the Group's insurance
activities; (f) the inclusion of finance lease income relating to
sub-leases where payments on the headlease are included in (a); (g)
the exclusion of any lease incentives recorded within operating
activities.
Management believes adjusted free cash flow is a useful measure for
investors and other stakeholders as it represents the cash
available to invest back into the business to drive future growth
and pay the ordinary dividend, with any surplus being available for
additional returns to shareholders. It is a key component in
measuring the ongoing viability of our business and is a key
reference point to our investment case.
Gross capital expenditure
Gross capital expenditure represents the consolidated capital
expenditure of IHG inclusive of System Fund capital investments.
Gross capital expenditure is defined as net cash from investing
activities, adjusted to include contract acquisition costs and to
exclude payments and repayments related to investments supporting
the Group's insurance activities and changes in bank accounts
pledged as security. In order to demonstrate the capital outflow of
the Group, cash flow receipts such as those arising from disposals
and distributions from associates and joint ventures, and finance
lease income, are excluded. Lease incentives and similar
contributions received are included in gross capital expenditure as
they directly reduce the Group's outlay. The measure also excludes
any material investments made in acquiring businesses (including
brands), including any subsequent payments of deferred or
contingent purchase consideration included within investing
activities, which represent ongoing payments for
acquisitions.
Gross capital expenditure is reported as key money, maintenance,
recyclable or System Fund. Contract acquisition costs are defined
as either key money or recyclable, depending on whether they form
part of other recyclable investments, such as any difference
between the face and market value of an owner loan on
inception.
This disaggregation provides useful information as it enables users
to distinguish between:
●
Key money, which reflects amounts paid to owners to secure
management and franchise agreements;
●
Maintenance capital expenditure, which reflects investments to
maintain our systems, corporate offices and owned & leased
hotels;
●
System Fund capital investments which are strategic investments to
drive growth at hotel level; and
●
Recyclable investments, such as all investments in associates and
joint ventures and any loans to facilitate third-party ownership of
hotel assets, which are generally intended to be recoverable in the
medium term and are to drive growth of the Group's brands and
expansion in primary markets.
Management believes gross capital expenditure is a useful measure
as it illustrates how the Group continues to invest in the business
to drive growth. It also allows for comparison
year-on-year.
Net capital expenditure
Net capital expenditure provides an indicator of the capital
intensity of IHG's business model. Net capital expenditure is
derived from net cash from investing activities, which includes
receipts such as those arising from disposals and distributions
from associates and joint ventures, adjusted to include contract
acquisition costs (net of repayments) and interest receipts from
owner loans, and to exclude payments and repayments related to
investments supporting the Group's insurance activities, changes in
bank accounts pledged as security, finance lease income and any
material investments made in acquiring businesses (including
brands), including any subsequent payments of deferred or
contingent purchase consideration included within investing
activities which are typically non-recurring in
nature.
In addition, System Fund depreciation and amortisation relating to
property, plant and equipment and intangible assets, respectively,
is added back, reducing the overall cash outflow. This reflects the
way in which System Funded capital investments are recovered from
the System Fund, over the life of the asset.
Management believes net capital expenditure is a useful measure as
it illustrates the net capital investment by IHG, after taking into
account capital recycling through asset disposal and the funding of
strategic investments by the System Fund. It provides investors and
other stakeholders with visibility of the cash flows which are
allocated to long-term investments to drive the Group's
strategy.
Change in definitions to the 2024 Annual Report and
Accounts
The definition of 'Adjusted interest' has been updated and prior
year reconciliations re-presented. An adjustment was previously
made to remove foreign exchange gains and losses, but these are now
reported separately in the Group Income Statement. This change does
not affect total adjusted interest.
Other changes seek to add clarity to the definitions and
reconciliations by aligning with terminology used in the Group
financial statements.
Change in terminology
The descriptor 'Owned, leased and managed lease' has been renamed
to 'Owned & leased' for brevity. The definition remains
unchanged and reflects hotels operated by IHG where IHG is, or
effectively acts as, the owner, with responsibility for assets,
employees and running costs. The entire revenue and profit of the
hotels are recorded in IHG's financial statements.
Revenue and operating profit non-GAAP reconciliations
Highlights for the 12 months ended 31 December
|
Reportable segments
|
Revenue
|
|
Operating profit
|
||||||||
|
|
|
|
|
|
|
|
|
||||
|
|
2025
|
2024
|
%
|
|
2025
|
2024
|
%
|
||||
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
||||
|
|
|
|
|
|
|
|
|
||||
|
Per Group income statement
|
5,189
|
|
4,923
|
|
5.4
|
|
1,198
|
|
1,041
|
|
15.1
|
|
System Fund and reimbursables
|
(2,721
|
)
|
(2,611
|
)
|
4.2
|
|
46
|
|
83
|
|
(44.6)
|
|
Operating exceptional items
|
-
|
|
-
|
|
-
|
|
21
|
|
-
|
|
NMa
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||
|
Reportable segments
|
2,468
|
|
2,312
|
|
6.7
|
|
1,265
|
|
1,124
|
|
12.5
|
|
|
|
|
|
|
|
|
|
||||
|
Reportable segments analysed as:
|
|
|
|
|
|
|
|
||||
|
Fee business
|
1,897
|
|
1,774
|
|
6.9
|
|
1,231
|
|
1,085
|
|
13.5
|
|
Owned
& leased
|
544
|
|
515
|
|
5.6
|
|
43
|
|
45
|
|
(4.4)
|
|
Insurance activities
|
27
|
|
23
|
|
17.4
|
|
(9
|
)
|
(6
|
)
|
50.0
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||
|
Reportable segments
|
2,468
|
|
2,312
|
|
6.7
|
|
1,265
|
|
1,124
|
|
12.5
|
a.
Percentage change considered not meaningful, such as where a
positive balance in the latest period is comparable to a negative
or zero balance in the prior period.
Underlying revenue and underlying operating profit
|
|
Revenue
|
|
Operating profit
|
|||||||||
|
|
|
|
|
|||||||||
|
|
2025
|
2024
|
%
|
|
2025
|
2024
|
%
|
|||||
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
Change
|
|||||
|
|
|
|
|
|
|
|
|
|||||
|
Reportable segments (see above)
|
2,468
|
2,312
|
6.7
|
|
1,265
|
1,124
|
12.5
|
|
||||
|
Significant liquidated damages
|
(7
)
|
-
|
NMb
|
|
(7
)
|
-
|
NMb
|
|||||
|
Owned
& leased asset acquisition and disposala
|
(7
)
|
(8
)
|
(12.5)
|
|
6
|
5
|
20.0
|
|
||||
|
Currency impact
|
-
|
17
|
NMb
|
|
-
|
-
|
-
|
|
||||
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|||||
|
Underlying revenue and underlying operating profit
|
2,454
|
2,321
|
5.7
|
|
1,264
|
1,129
|
12.0
|
|
||||
a.
The results of one Kimpton hotel in 2025 (being the year of lease
commencement) and one Regent hotel in 2024 (being the year of lease
expiration) are removed to determine the underlying growth,
adjusted to reflect 2025 rates.
b.
Percentage change considered not meaningful, such as where a
positive balance in the latest period is comparable to a negative
or zero balance in the prior period.
Underlying fee revenue and underlying fee
operating profit
|
|
Revenue
|
|
Operating profit
|
||||||||
|
|
|
|
|
|
|
||||||
|
|
2025
|
2024
|
%
|
|
2025
|
2024
|
%
|
||||
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
||||
|
|
|
|
|
|
|
|
|
||||
|
Reportable segments fee business (see above)
|
1,897
|
|
1,774
|
6.9
|
|
1,231
|
1,085
|
13.5
|
|||
|
Significant liquidated damages
|
(7
|
)
|
-
|
NMa
|
|
(7
)
|
-
|
NMa
|
|||
|
Currency impact
|
-
|
|
6
|
NMa
|
|
-
|
(1
)
|
NMa
|
|||
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||
|
Underlying fee revenue and underlying fee operating
profit
|
1,890
|
|
1,780
|
6.2
|
|
1,224
|
1,084
|
12.9
|
|||
a.
Percentage change considered not meaningful, such as where a
positive balance in the latest period is comparable to a negative
or zero balance in the prior period.
Americas
|
|
Revenue
|
|
Operating profita
|
||||||||
|
|
|
|
|
|
|
|
|
||||
|
|
2025
|
2024
|
%
|
|
2025
|
2024
|
%
|
||||
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
||||
|
|
|
|
|
|
|
|
|
||||
|
Per financial statements
|
1,129
|
1,141
|
(1.1)
|
|
836
|
828
|
1.0
|
||||
|
|
|
|
|
|
|
|
|
||||
|
Reportable segments analysed as:
|
|
|
|
|
|
|
|
||||
|
Fee business
|
963
|
979
|
(1.6)
|
|
804
|
795
|
1.1
|
||||
|
Owned
& leased
|
166
|
162
|
2.5
|
|
32
|
33
|
(3.0)
|
||||
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||
|
|
1,129
|
1,141
|
(1.1)
|
|
836
|
828
|
1.0
|
||||
|
|
|
|
|
|
|
|
|
||||
|
Reportable segments (see above)
|
1,129
|
1,141
|
(1.1)
|
|
836
|
828
|
1.0
|
||||
|
Significant liquidated damages
|
(7
)
|
-
|
NMb
|
|
(7
)
|
-
|
NMb
|
||||
|
Currency impact
|
-
|
(3
)
|
NMb
|
|
-
|
(3
)
|
NMb
|
||||
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||
|
Underlying revenue and
underlying operating profit
|
1,122
|
1,138
|
(1.4)
|
|
829
|
825
|
0.5
|
||||
|
|
|
|
|
|
|
|
|
||||
|
Owned
& leased included in the above
|
(166
)
|
(162
)
|
2.5
|
|
(32
)
|
(33
)
|
(3.0)
|
||||
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||
|
Underlying fee business
|
956
|
976
|
(2.0)
|
|
797
|
792
|
0.6
|
||||
a.
Before exceptional items.
b.
Percentage change considered not meaningful, such as where a
positive balance in the latest period is comparable to a negative
or zero balance in the prior period.
EMEAA
|
|
Revenue
|
|
Operating profita
|
||||
|
|
|
|
|
|
|
|
|
|
|
2025
|
2024
|
%
|
|
2025
|
2024
|
%
|
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
|
|
Per financial statements
|
811
|
748
|
8.4
|
|
303
|
270
|
12.2
|
|
|
|
|
|
|
|
|
|
|
Reportable segments analysed as:
|
|
|
|
|
|
|
|
|
Fee business
|
433
|
395
|
9.6
|
|
292
|
258
|
13.2
|
|
Owned
& leased
|
378
|
353
|
7.1
|
|
11
|
12
|
(8.3)
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
|
811
|
748
|
8.4
|
|
303
|
270
|
12.2
|
|
|
|
|
|
|
|
|
|
|
Reportable segments (see above)
|
811
|
748
|
8.4
|
|
303
|
270
|
12.2
|
|
Owned
& leased acquisition and disposalc
|
(7)
|
(8)
|
(12.5)
|
|
6
|
5
|
20.0
|
|
Currency impact
|
-
|
19
|
NMb
|
|
-
|
7
|
NMb
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
Underlying revenue and underlying operating profit
|
804
|
759
|
5.9
|
|
309
|
282
|
9.6
|
|
|
|
|
|
|
|
|
|
|
Owned
& leased included in the above
|
(371)
|
(356)
|
4.2
|
|
(17)
|
(18)
|
(5.6)
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
Underlying fee business
|
433
|
403
|
7.4
|
|
292
|
264
|
10.6
|
a.
Before exceptional items.
b.
Percentage change considered not meaningful, such as where a
positive balance in the latest period is comparable to a negative
or zero balance in the prior period.
c.
The results of one Kimpton hotel in 2025 (being the year of lease
commencement) and one Regent hotel in 2024 (being the year of lease
expiration) are removed to determine the underlying growth,
adjusted to reflect 2025 rates.
Greater China
|
|
Revenue
|
|
Operating profita
|
||||||||
|
|
|
|
|
|
|
|
|
||||
|
|
2025
|
2024
|
%
|
|
2025
|
2024
|
%
|
||||
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
||||
|
|
|
|
|
|
|
|
|
||||
|
Per financial statements
|
165
|
161
|
2.5
|
|
99
|
98
|
1.0
|
||||
|
|
|
|
|
|
|
|
|
||||
|
Reportable segments analysed as:
|
|
|
|
|
|
|
|
||||
|
Fee business
|
165
|
161
|
2.5
|
|
99
|
98
|
1.0
|
||||
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||
|
|
165
|
161
|
2.5
|
|
99
|
98
|
1.0
|
||||
|
|
|
|
|
|
|
|
|
||||
|
Reportable segments (see above)
|
165
|
161
|
2.5
|
|
99
|
98
|
1.0
|
||||
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
||||
|
Underlying revenue and underlying operating profit
|
165
|
161
|
2.5
|
|
99
|
98
|
1.0
|
||||
a.
Before exceptional items.
Fee margin reconciliation
|
|
12 months ended 31 December 2025
|
||||
|
|
|
||||
|
|
Americas
|
EMEAA
|
Greater China
|
Centrala
|
Total
|
|
Revenue $m
|
|
|
|
|
|
|
Reportable segments analysed as fee business (see
above)
|
963
|
433
|
165
|
336
|
1,897
|
|
Significant liquidated damages
|
(7)
|
-
|
-
|
-
|
(7)
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
956
|
433
|
165
|
336
|
1,890
|
|
|
|
|
|
|
|
|
Operating profit $m
|
|
|
|
|
|
|
Reportable segments analysed as fee business (see
above)
|
804
|
292
|
99
|
36
|
1,231
|
|
Significant liquidated damages
|
(7)
|
-
|
-
|
-
|
(7)
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
797
|
292
|
99
|
36
|
1,224
|
|
|
|
|
|
|
|
|
Fee margin %
|
83.4%
|
67.4%
|
60.0%
|
10.7%
|
64.8%
|
|
|
12 months ended 31 December 2024
|
||||
|
|
|
|
|
|
|
|
|
Americas
|
EMEAA
|
Greater China
|
Centrala
|
Total
|
|
Revenue $m
|
|
|
|
|
|
|
Reportable segments analysed as fee business (see
above)
|
979
|
395
|
161
|
239
|
1,774
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
979
|
395
|
161
|
239
|
1,774
|
|
|
|
|
|
|
|
|
Operating profit $m
|
|
|
|
|
|
|
Reportable segments analysed as fee business (see
above)
|
795
|
258
|
98
|
(66)
|
1,085
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
795
|
258
|
98
|
(66)
|
1,085
|
|
|
|
|
|
|
|
|
Fee margin %
|
81.2%
|
65.3%
|
60.9%
|
(27.6)%
|
61.2%
|
a.
Central fee business revenue and operating profit as per notes 2
and 3 to the Financial Statements, and excludes revenue and
operating loss from insurance activities of $27m and $9m,
respectively (2024: $23m and $6m).
Net and gross capital expenditure reconciliation
|
|
12 months ended 31 December
|
|
|
||||
|
|
2025
|
|
|
|
2024
|
|
|
|
|
$m
|
|
|
|
$m
|
|
|
|
Net cash from investing activities
|
(190)
|
|
|
|
(99)
|
|
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
Contract
acquisition costs, net of repayments
|
(179)
|
|
|
|
(237)
|
|
|
|
System
Fund depreciation and amortisationa
|
78
|
|
|
|
82
|
|
|
|
Payment
of deferred purchase consideration
|
-
|
|
|
|
10
|
|
|
|
Repayments
related to investments supporting the Group's insurance
activities
|
(3)
|
|
|
|
(5)
|
|
|
|
Changes
in bank accounts pledged as security
|
(7)
|
|
|
|
-
|
|
|
|
Purchase
of brands
|
120
|
|
|
|
-
|
|
|
|
Finance
lease receipts
|
(4)
|
|
|
|
(4)
|
|
|
|
|
_____
|
|
|
|
_____
|
|
|
|
Net capital expenditure
|
(185)
|
|
|
|
(253)
|
|
|
|
Further adjusted for:
|
|
|
|
|
|
|
|
|
Repayment
of contract acquisition costs
|
(2)
|
|
|
|
-
|
|
|
|
Other
disposals and repayments
|
(4)
|
|
|
|
(15)
|
|
|
|
System
Fund depreciation and amortisationa
|
(78)
|
|
|
|
(82)
|
|
|
|
|
_____
|
|
|
|
_____
|
|
|
|
Gross capital expenditure
|
(269)
|
|
|
|
(350)
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysed as:
|
Gross
|
Repaid
|
Net
|
|
Gross
|
Repaid
|
Net
|
|
Key money contract acquisition costs
|
(179)
|
2
|
(177)
|
|
(206)
|
-
|
(206)
|
|
Maintenance
|
(31)
|
-
|
(31)
|
|
(31)
|
-
|
(31)
|
|
Recyclable capital expenditure
|
|
|
|
|
|
|
|
|
Recyclable
contract acquisition costs
|
(2)
|
-
|
(2)
|
|
(31)
|
-
|
(31)
|
|
Other
recyclable investments
|
(14)
|
4
|
(10)
|
|
(37)
|
15
|
(22)
|
|
Capital expenditure: System Fund investments
|
(43)
|
78
|
35
|
|
(45)
|
82
|
37
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
Total capital expenditure
|
(269)
|
84
|
(185)
|
|
(350)
|
97
|
(253)
|
a.
Excludes depreciation of right-of-use assets
Adjusted free cash flow reconciliation
|
|
12 months ended
31 December
|
|
|
|
|
|
|
|
2025
|
2024
|
|
|
$m
|
$m
|
|
|
|
|
|
Net cash from operating activities
|
898
|
724
|
|
Adjusted for:
|
|
|
|
Purchase
of shares by employee share trusts
|
(10)
|
(27)
|
|
Gross
maintenance capital expenditure
|
(31)
|
(31)
|
|
Cash
flows relating to exceptional itemsa
|
57
|
(8)
|
|
Principal
element of lease payments
|
(30)
|
(46)
|
|
Deferred
purchase consideration
|
-
|
3
|
|
Recyclable
contract acquisition costs
|
2
|
31
|
|
Repayments
related to investments supporting the Group's insurance
activities
|
3
|
5
|
|
Finance
lease receipts
|
4
|
4
|
|
|
_____
|
_____
|
|
Adjusted free cash flow
|
893
|
655
|
|
|
_____
|
_____
|
a.
In 2025, includes $34m of exceptional tax paid.
Adjusted interest reconciliation
|
|
12 months ended
31 December
|
|
|
|
|
|
|
|
2025
|
2024
|
|
|
|
Re-presenteda
|
|
|
$m
|
$m
|
|
Net financial expenses
|
|
|
|
Financial income
|
49
|
63
|
|
Financial expenses
|
(202)
|
(178)
|
|
|
_____
|
_____
|
|
|
(153)
|
(115)
|
|
Adjusted for:
|
|
|
|
Interest
attributable to the System Fund
|
(47)
|
(50)
|
|
|
_____
|
_____
|
|
|
(47)
|
(50)
|
|
|
_____
|
_____
|
|
Adjusted interest
|
(200)
|
(165)
|
|
|
_____
|
_____
|
a.
An adjustment was previously made to remove foreign exchange gains
and losses presented within 'financial expenses'. These are now
reported separately in the Group Income Statement. This change does
not affect the total adjusted interest.
Adjusted tax and tax rate reconciliation
|
|
2025
|
2024
|
||||||
|
|
Profit before tax
|
Tax
|
Tax rate
|
Profit before tax
|
Tax
|
Tax rate
|
||
|
|
$m
|
$m
|
|
$m
|
$m
|
|
||
|
|
|
|
|
|
|
|
||
|
Group income statement
|
1,074
|
(315)
|
29.3
|
%
|
897
|
(269)
|
30.0
|
%
|
|
Adjusted
for:
|
|
|
|
|
|
|
||
|
Exceptional
items
|
21
|
16
|
|
-
|
-
|
|
||
|
Foreign
exchange (gains)/losses
|
(37)
|
-
|
|
25
|
3
|
|
||
|
System Fund
|
46
|
9
|
|
83
|
4
|
|
||
|
Interest attributable to the System Fund
|
(47)
|
-
|
|
(50)
|
-
|
|
||
|
Remeasurement
losses on contingent purchase consideration
|
8
|
-
|
|
4
|
-
|
|
||
|
|
_____
|
_____
|
|
_____
|
_____
|
|
||
|
Adjusted tax and tax rate
|
1,065
|
(290)
|
27.2
|
%
|
959
|
(262)
|
27.3
|
%
|
|
|
|
|
|
|
|
|
||
Adjusted earnings per ordinary share reconciliation
|
|
12 months ended 31 December
|
|
|
|
|
|
|
|
2025
|
2024
|
|
|
$m
|
$m
|
|
Profit available for equity holders
|
758
|
628
|
|
Adjusting items:
|
|
|
|
System
Fund and reimbursable result
|
46
|
83
|
|
Interest
attributable to the System Fund
|
(47)
|
(50)
|
|
Operating
exceptional items
|
21
|
-
|
|
Remeasurement
losses on contingent purchase consideration
|
8
|
4
|
|
Foreign
exchange (gains)/losses
|
(37)
|
25
|
|
Tax
attributable to the System Fund
|
9
|
4
|
|
Tax on
foreign exchange (gains)/losses
|
-
|
3
|
|
Tax
exceptional items
|
16
|
-
|
|
|
_____
|
_____
|
|
Adjusted earnings
|
774
|
697
|
|
|
|
|
|
Basic weighted average number of ordinary shares
(millions)
|
154.4
|
161.2
|
|
Adjusted
earnings per ordinary share (cents)
|
501.3
|
432.4
|
|
|
|
|
INTERCONTINENTAL HOTELS GROUP PLC
GROUP INCOME STATEMENT
For the year ended 31 December 2025
|
|
2025
|
2024
|
|
|
|
Year ended
|
Year ended
|
|
|
|
31 December
|
31 December
|
|
|
|
|
Re-presenteda
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
Revenue
from fee business
|
1,897
|
1,774
|
|
|
Revenue
from owned & leased hotels
|
544
|
515
|
|
|
Revenue
from insurance activities
|
27
|
23
|
|
|
System
Fund and reimbursable revenues
|
2,721
|
2,611
|
|
|
|
_____
|
_____
|
|
|
Total revenue (notes 3 and 4)
|
5,189
|
4,923
|
|
|
|
|
|
|
|
Cost
of sales
|
(764)
|
(745)
|
|
|
System
Fund and reimbursable expenses
|
(2,767)
|
(2,694)
|
|
|
Administrative expenses
|
(354)
|
(359)
|
|
|
Insurance expenses
|
(36)
|
(29)
|
|
|
Share
of profits of associates and joint ventures
|
6
|
10
|
|
|
Other
operating income
|
14
|
10
|
|
|
Depreciation
and amortisation
|
(67)
|
(65)
|
|
|
Impairment
loss on financial assets
|
(21)
|
(10)
|
|
|
Other
net impairment charges
|
(2)
|
-
|
|
|
|
_____
|
_____
|
|
|
Operating profit (note 3)
|
1,198
|
1,041
|
|
|
|
|
|
|
|
Operating
profit analysed as:
|
|
|
|
|
Operating profit
before System Fund, reimbursables and exceptional
items
|
1,265
|
1,124
|
|
|
System
Fund and reimbursable result
|
(46)
|
(83)
|
|
|
Operating
exceptional items (note 5)
|
(21)
|
-
|
|
|
|
_____
|
_____
|
|
|
|
1,198
|
1,041
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income
|
49
|
63
|
|
|
Financial expenses
|
(202)
|
(178)
|
|
|
Foreign
exchange gains/(losses)
|
37
|
(25)
|
|
|
Remeasurement
of contingent purchase consideration
|
(8)
|
(4)
|
|
|
|
_____
|
_____
|
|
|
Profit before tax
|
1,074
|
897
|
|
|
|
|
|
|
|
Tax
(note 6)
|
(315)
|
(269)
|
|
|
|
_____
|
_____
|
|
|
Profit for the year
|
759
|
628
|
|
|
|
_____
|
_____
|
|
|
Attributable to:
|
¯¯¯¯
|
¯¯¯¯
|
|
|
Equity
holders of the parent
|
758
|
628
|
|
|
Non-controlling interest
|
1
|
-
|
|
|
|
_____
|
_____
|
|
|
|
759
|
628
|
|
|
|
_____
|
_____
|
|
|
Earnings per ordinary share (note 8)
|
¯¯¯¯
|
¯¯¯¯
|
|
|
Basic
|
490.9¢
|
389.6¢
|
|
|
Diluted
|
486.5¢
|
385.3¢
|
|
a.
In 2025, foreign exchange gains/(losses) have been presented on a
separate line. The 2024 amount was previously presented within
'Financial expenses'.
INTERCONTINENTAL HOTELS GROUP PLC
GROUP STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2025
|
|
2025
|
2024
|
|
|
|
Year ended
|
Year ended
|
|
|
|
31 December
|
31 December
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
Profit for the year
|
759
|
628
|
|
|
|
|
|
|
|
Other comprehensive (loss)/income
|
|
|
|
|
Items
that may be subsequently reclassified to profit
or loss:
|
|
|
|
|
Gains/(losses) on
cash flows hedges, including related tax credit of $14m (2024: $11m
charge)
|
140
|
(124)
|
|
|
Gains/(losses)
on net investment hedges
|
35
|
(7)
|
|
|
Costs
of hedging
|
4
|
(11)
|
|
|
Hedging
(gains)/losses reclassified to financial expenses
|
(186)
|
165
|
|
|
Exchange
(losses)/gains on retranslation of foreign operations,
including related tax charge of $2m (2024: $2m)
|
(91)
|
4
|
|
|
|
_____
|
_____
|
|
|
|
(98)
|
27
|
|
|
Items
that will not be reclassified to profit or loss:
|
|
|
|
|
(Losses)/gains
on equity instruments classified as fair value through other
comprehensive income
|
(1)
|
2
|
|
|
Remeasurement
gains on defined benefit plans
|
-
|
4
|
|
|
|
_____
|
_____
|
|
|
|
(1)
|
6
|
|
|
|
_____
|
_____
|
|
|
Total other comprehensive (loss)/income for
the year
|
(99)
|
33
|
|
|
|
_____
|
_____
|
|
|
Total comprehensive income for the year
|
660
|
661
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
|
Attributable to:
|
|
|
|
|
Equity
holders of the parent
|
659
|
661
|
|
|
Non-controlling interest
|
1
|
-
|
|
|
|
_____
|
_____
|
|
|
|
660
|
661
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
INTERCONTINENTAL HOTELS GROUP PLC
GROUP STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2025
|
|
Year ended 31 December 2025
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non-controlling interest
|
Total equity
|
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
|
|
At
beginning of the year
|
137
|
(2,483)
|
34
|
4
|
(2,308)
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the year
|
-
|
(99)
|
758
|
1
|
660
|
|
|
Repurchase
of shares, including taxes and transaction costs
|
(2)
|
2
|
(882)
|
-
|
(882)
|
|
|
Purchase
of own shares by employee share trusts
|
-
|
(15)
|
-
|
-
|
(15)
|
|
|
Transfer
of treasury shares to employee share trusts
|
-
|
(34)
|
34
|
-
|
-
|
|
|
Release
of own shares by employee share trusts
|
-
|
55
|
(55)
|
-
|
-
|
|
|
Equity-settled
share-based cost
|
-
|
-
|
67
|
-
|
67
|
|
|
Tax
related to share schemes
|
-
|
-
|
9
|
-
|
9
|
|
|
Equity
dividends paid
|
-
|
-
|
(270)
|
-
|
(270)
|
|
|
Exchange
and other adjustments
|
10
|
(10)
|
3
|
-
|
3
|
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
At end of the year
|
145
|
(2,584)
|
(302)
|
5
|
(2,736)
|
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
¯¯¯¯
|
¯¯¯¯
|
¯¯¯¯
|
|
|
|
Year ended 31 December 2024
|
|||||
|
|
|
|
|
|
|
|
|
|
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non-controlling interest
|
Total equity
|
|
|
|
|
|
|
|
|
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
|
|
At beginning of the year
|
141
|
(2,487)
|
396
|
4
|
(1,946)
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the year
|
-
|
29
|
632
|
-
|
661
|
|
|
Repurchase of shares, including taxes and transaction
costs
|
(2)
|
2
|
(812)
|
-
|
(812)
|
|
|
Purchase of own shares by employee share trusts
|
-
|
(27)
|
-
|
-
|
(27)
|
|
|
Transfer of treasury shares to employee share trusts
|
-
|
(33)
|
33
|
-
|
-
|
|
|
Release of own shares by employee share trusts
|
-
|
31
|
(31)
|
-
|
-
|
|
|
Equity-settled share-based cost
|
-
|
-
|
60
|
-
|
60
|
|
|
Tax related to share schemes
|
-
|
-
|
15
|
-
|
15
|
|
|
Equity dividends paid
|
-
|
-
|
(259)
|
-
|
(259)
|
|
|
Exchange
and other adjustments
|
(2)
|
2
|
-
|
-
|
-
|
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
At end of the year
|
137
|
(2,483)
|
34
|
4
|
(2,308)
|
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
¯¯¯¯
|
¯¯¯¯
|
¯¯¯¯
|
|
*Other reserves comprise the capital redemption reserve, shares
held by employee share trusts, other reserves, fair value reserve,
cash flow hedge reserves and currency translation
reserve.
All items within total comprehensive income are shown net of
tax.
INTERCONTINENTAL HOTELS GROUP PLC
GROUP STATEMENT OF FINANCIAL POSITION
31 December 2025
|
|
2025
|
2024
|
|
|
31 December
|
31 December
|
|
|
|
|
|
|
$m
|
$m
|
|
ASSETS
|
|
|
|
Goodwill
and other intangible assets
|
1,155
|
1,042
|
|
Property,
plant and equipment
|
148
|
146
|
|
Right-of-use
assets
|
269
|
276
|
|
Investment
in associates and joint ventures
|
55
|
51
|
|
Retirement
benefit assets
|
3
|
3
|
|
Other
financial assets
|
211
|
212
|
|
Derivative
financial instruments
|
120
|
4
|
|
Deferred
compensation plan investments
|
316
|
286
|
|
Non-current
other receivables
|
19
|
35
|
|
Deferred
tax assets
|
146
|
122
|
|
Contract
costs
|
103
|
90
|
|
Contract
assets
|
751
|
612
|
|
|
_____
|
_____
|
|
Total non-current assets
|
3,296
|
2,879
|
|
|
_____
|
_____
|
|
Inventories
|
5
|
4
|
|
Trade
and other receivables
|
833
|
785
|
|
Current
tax receivable
|
27
|
22
|
|
Other
financial assets
|
3
|
7
|
|
Cash
and cash equivalents
|
1,129
|
1,008
|
|
Contract
costs
|
5
|
5
|
|
Contract
assets
|
47
|
38
|
|
|
_____
|
_____
|
|
Total current assets
|
2,049
|
1,869
|
|
|
_____
|
_____
|
|
Total assets
|
5,345
|
4,748
|
|
|
_____
|
_____
|
|
LIABILITIES
|
¯¯¯¯
|
¯¯¯¯
|
|
Loans
and other borrowings
|
(478)
|
(398)
|
|
Lease
liabilities
|
(28)
|
(26)
|
|
Trade
and other payables
|
(676)
|
(650)
|
|
Deferred
revenue
|
(829)
|
(766)
|
|
Provisions
|
(21)
|
(22)
|
|
Insurance
liabilities
|
(16)
|
(14)
|
|
Tax
payable
|
(52)
|
(52)
|
|
|
_____
|
_____
|
|
Total current liabilities
|
(2,100)
|
(1,928)
|
|
|
_____
|
_____
|
|
Loans
and other borrowings
|
(3,723)
|
(2,876)
|
|
Lease
liabilities
|
(378)
|
(388)
|
|
Derivative
financial instruments
|
(12)
|
(78)
|
|
Retirement
benefit obligations
|
(69)
|
(68)
|
|
Deferred
compensation plan liabilities
|
(316)
|
(286)
|
|
Trade
and other payables
|
(69)
|
(78)
|
|
Deferred
revenue
|
(1,340)
|
(1,294)
|
|
Provisions
|
(22)
|
(17)
|
|
Insurance
liabilities
|
(29)
|
(25)
|
|
Deferred
tax liabilities
|
(17)
|
(18)
|
|
Tax
payable
|
(6)
|
-
|
|
|
_____
|
_____
|
|
Total non-current liabilities
|
(5,981)
|
(5,128)
|
|
|
_____
|
_____
|
|
Total liabilities
|
(8,081)
|
(7,056)
|
|
|
_____
|
_____
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
Net liabilities
|
(2,736)
|
(2,308)
|
|
_____
|
_____
|
|
|
EQUITY
|
¯¯¯¯
|
¯¯¯¯
|
|
IHG
shareholders' equity
|
(2,741)
|
(2,312)
|
|
Non-controlling
interest
|
5
|
4
|
|
|
_____
|
_____
|
|
Total equity
|
(2,736)
|
(2,308)
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
INTERCONTINENTAL HOTELS GROUP PLC
GROUP STATEMENT OF CASH FLOWS
For the year ended 31 December 2025
|
|
2025
|
2024
|
|
|
Year ended
|
Year ended
|
|
|
31 December
|
31 December
|
|
|
$m
|
$m
|
|
|
|
|
|
Profit for the year
|
759
|
628
|
|
Adjustments
reconciling profit for the year to cash flow from operations (note
9)
|
602
|
521
|
|
|
_____
|
_____
|
|
Cash flow from operations
|
1,361
|
1,149
|
|
Interest paid
|
(202)
|
(170)
|
|
Interest received
|
46
|
57
|
|
Deferred purchase consideration paid
|
-
|
(3)
|
|
Tax paid
(note 6)
|
(307)
|
(309)
|
|
|
_____
|
_____
|
|
Net cash from operating activities
|
898
|
724
|
|
|
_____
|
_____
|
|
Cash flow from investing activities
|
|
|
|
Purchase
of property, plant and equipment
|
(28)
|
(29)
|
|
Purchase
of brands
|
(120)
|
-
|
|
Purchase
of other intangible assets
|
(49)
|
(49)
|
|
Investment in associates and joint ventures
|
(11)
|
(6)
|
|
Investment
in other financial assets
|
(3)
|
(32)
|
|
Deferred purchase consideration paid
|
-
|
(10)
|
|
Disposal
of property, plant and equipment
|
-
|
9
|
|
Repayments
of other financial assets
|
14
|
11
|
|
Finance lease receipts
|
4
|
4
|
|
Other investing cash flows
|
3
|
3
|
|
|
_____
|
_____
|
|
Net cash from investing activities
|
(190)
|
(99)
|
|
|
_____
|
_____
|
|
Cash flow from financing activities
|
|
|
|
Repurchase
of shares, including taxes
and transaction costs
|
(897)
|
(804)
|
|
Purchase
of own shares by employee share trusts
|
(10)
|
(27)
|
|
Dividends
paid to shareholders (note 7)
|
(270)
|
(259)
|
|
Issue
of long-term bonds, including effect of currency swaps (note
11)
|
990
|
834
|
|
Repayment
of long-term bonds (note 11)
|
(403)
|
(547)
|
|
Settlement
of currency swaps (note 11)
|
-
|
(45)
|
|
Drawdown
of Revolving Credit Facility (note 11)
|
75
|
-
|
|
Repayment
of Revolving Credit Facility (note 11)
|
(75)
|
-
|
|
Principal
element of lease payments (note 11)
|
(30)
|
(46)
|
|
Other
financing cash flows
|
6
|
-
|
|
|
_____
|
_____
|
|
Net cash from financing activities
|
(614)
|
(894)
|
|
|
_____
|
_____
|
|
Net movement in cash and cash equivalents, net of
overdrafts,
in the year
|
94
|
(269)
|
|
Cash
and cash equivalents, net of overdrafts, at beginning of
the year
|
991
|
1,278
|
|
Exchange
rate effects
|
41
|
(18)
|
|
|
_____
|
_____
|
|
Cash and cash equivalents, net of overdrafts, at end of
the year
|
1,126
|
991
|
|
|
_____
|
_____
|
|
|
¯¯¯¯
|
¯¯¯¯
|
INTERCONTINENTAL HOTELS GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS
|
1.
|
Basis of preparation
|
|
|
The
preliminary consolidated financial statements of InterContinental
Hotels Group PLC (the 'Group' or 'IHG') for the year ended
31 December 2025 have been prepared in accordance with
UK-adopted international accounting standards and with applicable
law and regulations, including the Companies Act 2006, and with
International Financial Reporting Standards ('IFRS Accounting
Standards') as issued by the International Accounting Standards
Board ('IASB'). The preliminary statement of results shown in this
announcement does not represent the statutory accounts of the Group
and its subsidiaries within the meaning of Section 435 of the
Companies Act 2006.
The
Group financial statements for the year ended 31 December 2025
were approved by the Board on 16 February 2026. The auditor,
PricewaterhouseCoopers LLP, has given an unqualified report in
respect of those Group financial statements with no reference to
matters to which the auditor drew attention by way of emphasis and
no statement under s498(2) or s498(3) of the Companies Act 2006.
The Group financial statements for the year ended 31 December
2025 will be delivered to the Registrar of Companies in due
course.
Going concern
The
period to 30 June 2027 has been used to complete the going concern
assessment.
In
adopting the going concern basis for preparing the Group
financial statements, the Directors have considered a 'Base Case'
scenario, as prepared by management, which assumes Global
RevPAR in 2026 and 2027 continues to grow in line with market
expectations. The assumptions applied in the Base Case
scenario are consistent with those used for Group planning
purposes, impairment testing and for assessing recoverability of
deferred tax assets.
In
addition, the Directors have reviewed a 'Severe Downside Case'
reflecting a severe but plausible scenario equivalent to the market
conditions experienced during the 2008/2009 global financial
crisis, in which RevPAR declines by 17% in 2026 before recovering
by 5% in 2027. A 'Combined Scenario' has also been considered,
modelling the Severe Downside Case in conjunction with a
significant cash flow impact from a one-off event, such as a
cybersecurity incident.
Principal
risks that could materially affect RevPAR are captured
within the Severe Downside Case, while other risks with
the potential to cause a substantial one-off impact on cash
flow - such as a cybersecurity event - are addressed in the
Combined Scenario. Climate risks are not considered to have a
significant impact over the period of assessment.
The
Group enters the assessment period with substantial
liquidity at 31 December 2025 of $2,599m, comprising
$1,099m of cash and cash equivalents (net of overdrafts and
restricted cash) and $1,500m of undrawn bank facility. The Group's
revolving credit facility was refinanced in December 2025 with
a new $1,500m facility that matures in 2030. There are no
financial covenants in the new facility. See note 10 for additional
information. In September 2025 the Group issued a €850m bond.
There are two bond maturities in the period under consideration,
£350m in August 2026 and €500m in May 2027. No new
funding is assumed in the period under review.
Under
the Base Case and Severe Downside Case there is significant
liquidity available to absorb multiple additional risks
and uncertainties. Under the Combined Scenario there is a lower
level of liquidity, however, the Directors also reviewed a
number of actions that could be taken, if required,
to reduce discretionary spend, creating substantial additional
liquidity.
The
Directors reviewed a reverse stress test scenario to determine
what other events could create a scenario which would exhaust the
liquidity in the Combined Scenario. The Directors concluded that it
was very unlikely that a single risk or combination of the
risks considered could create the sustained impact
required.
Having
reviewed these scenarios, the Directors have a reasonable
expectation that the Group has sufficient resources to continue
operating until at least 30 June 2027. Accordingly, they
continue to adopt the going concern basis in preparing the
financial statements.
|
|
2.
|
Exchange rates
|
|
|
|
|
|
|
|
2025
|
2025
|
2024
|
2024
|
|
|
|
Average
|
Closing
|
Average
|
Closing
|
|
|
$1 equivalent
|
|
|
|
|
|
|
Sterling
|
£0.76
|
£0.74
|
£0.78
|
£0.80
|
|
|
Euro
|
€0.89
|
€0.85
|
€0.92
|
€0.96
|
|
3.
|
Segmental information
|
|
|
|
|
Revenue
|
2025
|
2024
|
|
|
Year ended 31 December 2025
|
$m
|
$m
|
|
|
|
|
|
|
|
Americas
|
1,129
|
1,141
|
|
|
EMEAA
|
811
|
748
|
|
|
Greater China
|
165
|
161
|
|
|
Central
|
363
|
262
|
|
|
|
_____
|
_____
|
|
|
Revenue from reportable segments
|
2,468
|
2,312
|
|
|
System
Fund and reimbursable revenues
|
2,721
|
2,611
|
|
|
|
_____
|
_____
|
|
|
Total revenue
|
5,189
|
4,923
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
|
Profit
|
2025
|
2024
|
|
|
Year ended 31 December 2025
|
$m
|
$m
|
|
|
|
|
|
|
|
Americas
|
836
|
828
|
|
|
EMEAA
|
303
|
270
|
|
|
Greater China
|
99
|
98
|
|
|
Central
|
27
|
(72)
|
|
|
|
_____
|
_____
|
|
|
Operating profit from reportable segments
|
1,265
|
1,124
|
|
|
System
Fund and reimbursable result
|
(46)
|
(83)
|
|
|
Operating
exceptional items (note 5)
|
(21)
|
-
|
|
|
|
_____
|
_____
|
|
|
Operating profit
|
1,198
|
1,041
|
|
|
Net
financial expenses
|
(153)
|
(115)
|
|
|
Foreign
exchange gains/(losses)
|
37
|
(25)
|
|
|
Remeasurement
of contingent purchase consideration
|
(8)
|
(4)
|
|
|
|
_____
|
_____
|
|
|
Profit before tax
|
1,074
|
897
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
4.
|
Revenue
|
|
|
|
|
|
|
|
Year ended 31 December 2025
|
|
|
|
|
|
|
|
|
Americas
|
EMEAA
|
Greater China
|
Central
|
Group
|
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
|
|
Franchise
and base management fees
|
943
|
299
|
129
|
-
|
1,371
|
|
|
Incentive
management fees
|
20
|
134
|
36
|
-
|
190
|
|
|
Central revenue
|
-
|
-
|
-
|
336
|
336
|
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
Revenue
from fee business
|
963
|
433
|
165
|
336
|
1,897
|
|
|
|
|
|
|
|
|
|
|
Revenue
from owned & leased hotels
|
166
|
378
|
-
|
-
|
544
|
|
|
Revenue
from insurance activities
|
-
|
-
|
-
|
27
|
27
|
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
|
1,129
|
811
|
165
|
363
|
2,468
|
|
|
|
|
|
|
|
|
|
|
System
Fund revenues
|
|
|
|
|
1,717
|
|
|
Reimbursable revenues
|
|
|
|
|
1,004
|
|
|
|
|
|
|
|
_____
|
|
|
Total revenue
|
|
|
|
|
5,189
|
|
|
|
|
|
|
|
_____
|
|
|
|
|
|
|
|
¯¯¯¯
|
|
|
Central
revenue arises principally from technology fee income and ancillary
revenues including co-brand licensing fees and, following execution
of a revised agreement with the IHG Owners Association in 2024, a
portion of revenue from the consumption of certain IHG One Rewards
points. The agreed change initially applied to 50% of proceeds from
points sold to consumers from 1 January 2024 and increased to 100%
from 1 January 2025. In line with the Group's accounting policy,
revenue from the sale of points is deferred until the future
benefit has been consumed by the member.
|
|||||
|
|
Year ended 31 December 2024
|
|
|
|
|
|
|
|
|
Americas
|
EMEAA
|
Greater China
|
Central
|
Group
|
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
|
|
Franchise
and base management fees
|
958
|
277
|
122
|
-
|
1,357
|
|
|
Incentive
management fees
|
21
|
118
|
39
|
-
|
178
|
|
|
Central revenue
|
-
|
-
|
-
|
239
|
239
|
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
Revenue
from fee business
|
979
|
395
|
161
|
239
|
1,774
|
|
|
|
|
|
|
|
|
|
|
Revenue
from owned & leased hotels
|
162
|
353
|
-
|
-
|
515
|
|
|
Revenue
from insurance activities
|
-
|
-
|
-
|
23
|
23
|
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
|
1,141
|
748
|
161
|
262
|
2,312
|
|
|
|
|
|
|
|
|
|
|
System
Fund revenues
|
|
|
|
|
1,611
|
|
|
Reimbursable revenues
|
|
|
|
|
1,000
|
|
|
|
|
|
|
|
_____
|
|
|
Total revenue
|
|
|
|
|
4,923
|
|
|
|
|
|
|
|
_____
|
|
|
|
|
|
|
|
¯¯¯¯
|
|
5.
|
Operating exceptional items
|
|
|
|
|
|
2025
|
2024
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
Global efficiency programme
|
(12)
|
-
|
|
|
Commercial litigation and disputes
|
(9)
|
(12)
|
|
|
Impairment
reversal on financial assets
|
-
|
6
|
|
|
Impairment
reversal on property, plant and equipment
|
-
|
3
|
|
|
Impairment
reversal on contract assets
|
-
|
3
|
|
|
|
_____
|
_____
|
|
|
Operating exceptional items
|
(21)
|
-
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
|
Operating
exceptional items analysed as:
|
|
|
|
|
Americas
|
(2)
|
4
|
|
|
EMEAA
|
(13)
|
(4)
|
|
|
Central
|
(6)
|
-
|
|
|
|
_____
|
_____
|
|
|
|
(21)
|
-
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
|
Global efficiency programme
Comprises
costs incurred in the ongoing delivery of a global efficiency
programme, designed to achieve incremental cost base efficiencies
and effectiveness. The costs, included within 'Cost of sales' and
'Administrative expenses' in the Group income statement, are
presented as exceptional because they relate to a comprehensive
programme and therefore do not reflect normal, ongoing costs of the
business. An additional $10m was charged to the System Fund for the
year to 31 December 2025. Further exceptional costs are
expected to be incurred to complete the programme in
2026.
Commercial litigation and disputes
From
time to time, the Group is subject to legal proceedings the
ultimate outcome of each being always subject to many uncertainties
inherent in litigation. The charge relates to the EMEAA region and
includes legal costs. The costs, included within 'Administrative
expenses' in the Group income statement, are presented as
exceptional reflecting the quantum of the costs and nature of the
disputes.
Impairment reversal on financial assets
The
2024 reversal of $6m related to impairments originally recorded in
2020. These reversals, included within 'Impairment loss on
financial assets' in the Group income statement, were presented as
exceptional for consistency with the treatment of the corresponding
impairments.
Impairment reversal on property, plant and equipment
The
2024 reversal of $3m related to one hotel in the UK portfolio. The
original impairment was recorded in 2020. The reversal, included
within 'Other net impairment charges' in the Group income
statement, was presented as exceptional for consistency with the
treatment of the corresponding impairment.
Impairment reversal on contract assets
The
2024 reversal of $3m related to an impairment originally recorded
in 2020. The reversal, included within 'Other net impairment
charges' in the Group income statement, was presented as
exceptional for consistency with the treatment of the corresponding
impairment.
|
|
6.
|
Tax
|
|
|
|
|
|
|
Tax on profit for the year
|
||||
|
|
|
2025
|
|
2024
|
|
|
|
|
$m
|
|
$m
|
|
|
|
|
|
|
|
|
|
|
Current
tax
|
320
|
|
316
|
|
|
|
Deferred
tax
|
(5)
|
|
(47)
|
|
|
|
|
_____
|
|
_____
|
|
|
|
Tax charge
|
315
|
|
269
|
|
|
|
|
_____
|
|
_____
|
|
|
|
Further analysed as:
|
¯¯¯¯
|
|
¯¯¯¯
|
|
|
|
UK
tax
|
35
|
|
33
|
|
|
|
Foreign
tax
|
280
|
|
236
|
|
|
|
|
_____
|
|
_____
|
|
|
|
|
315
|
|
269
|
|
|
|
|
_____
|
|
_____
|
|
|
|
|
¯¯¯¯
|
|
¯¯¯¯
|
|
|
|
The tax
charge includes the following exceptional items:
|
||||
|
|
|
|
|
|
|
|
|
Tax on
operating exceptional items (note 5)
|
5
|
|
-
|
|
|
|
Exceptional
tax charge
|
(21)
|
|
-
|
|
|
|
|
_____
|
|
_____
|
|
|
|
Tax exceptional items
|
(16)
|
|
-
|
|
|
|
|
_____
|
|
_____
|
|
|
|
|
¯¯¯¯
|
|
¯¯¯¯
|
|
|
|
|
|
|
|
|
|
|
Exceptional tax
|
|
|
|
|
|
|
The
exceptional tax charge comprises a $34m current tax charge and a
$34m deferred tax credit, both in respect of tax that arose on the
acquisition of Holiday Inn in 1990, and a $21m deferred tax charge
following the completion of an intra-group restructuring
transaction, which otherwise has had no impact on the consolidated
financial statements. These are presented as exceptional due to
their size and non-recurring nature.
|
||||
|
|
|
|
|
|
|
|
|
Tax paid
|
||||
|
|
Total
tax paid (net of refunds) of $307m (2024: $309m)
includes $34m in 2025 relating
to the settlement of the tax liability noted within exceptional tax
above. The payment is classified as an exceptional cash flow due to
its size and nature.
|
||||
|
|
|
|
|
|
|
|
|
Deferred tax
|
||||
|
|
The
deferred tax asset of $146m (2024: $122m) comprises $92m (2024:
$99m) in the UK and $54m (2024: $23m) in respect of other
territories. The deferred tax asset has been recognised based upon
forecasts consistent with those used in the going concern
assessment.
|
||||
|
7.
|
Dividends and shareholder returns
|
|
|
|
|
|
|
|
2025
|
2024
|
||
|
|
|
cents per share
|
$m
|
cents per share
|
$m
|
|
|
Paid during the year:
|
|
|
|
|
|
|
Final
(declared for previous year)
|
114.4
|
180
|
104.0
|
172
|
|
|
Interim
|
58.6
|
90
|
53.2
|
87
|
|
|
|
_____
|
_____
|
_____
|
_____
|
|
|
|
173.0
|
270
|
157.2
|
259
|
|
|
|
_____
|
_____
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
¯¯¯¯
|
¯¯¯¯
|
|
|
The
final dividend in respect of 2025 of 125.9¢ per ordinary share
(amounting to approximately $190m) is proposed for approval at the
AGM on 7 May 2026. The final dividend is first determined in
US dollars and the sterling amount will be announced on 27 April
2026 using the average of the daily exchange rates for the three
working days commencing 22 April 2026.
|
||||
|
|
|
|
|
|
|
|
|
In the
year ended 31 December 2025, 7.6m shares were repurchased (and
subsequently cancelled) for a total cash cost of $897m (including
taxes and transaction costs). Total consideration of $882m includes
a reversal of $15m of taxes previously provided for in respect of
the 2024 and 2023 buyback programmes. These taxes are no longer
expected to be payable, following legislative changes.
In the
year ended 31 December 2024, 7.5m shares were repurchased for
total consideration of $812m (including taxes and transaction
costs) and subsequently cancelled.
For
each of the share buyback programmes undertaken, authority was
given to the Company at the respective AGM prior to commencement of
the buyback.
In
February 2026, the Board approved a further $950m share buyback
programme to be completed by the end of 2026. A resolution to renew
the authority to repurchase shares will be put to shareholders at
the AGM on 7 May 2026.
|
||||
|
8.
|
Earnings per ordinary share
|
|
|
|
|
|
2025
|
2024
|
|
|
Basic earnings per ordinary share
|
|
|
|
|
Profit
available for equity holders ($m)
|
758
|
628
|
|
|
Basic
weighted average number of ordinary
shares (millions)
|
154.4
|
161.2
|
|
|
Basic
earnings per ordinary share (cents)
|
490.9
|
389.6
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
|
Diluted earnings per ordinary share
|
|
|
|
|
Profit
available for equity holders ($m)
|
758
|
628
|
|
|
Diluted
weighted average number of ordinary
shares (millions)
|
155.8
|
163.0
|
|
|
Diluted
earnings per ordinary share (cents)
|
486.5
|
385.3
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
|
Diluted
weighted average number of ordinary shares is
calculated as:
|
|
|
|
|
|
2025
|
2024
|
|
|
|
millions
|
millions
|
|
|
|
|
|
|
|
Basic
weighted average number of ordinary shares
|
154.4
|
161.2
|
|
|
Dilutive
potential ordinary shares
|
1.4
|
1.8
|
|
|
|
_____
|
_____
|
|
|
|
155.8
|
163.0
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
9.
|
Reconciliation of profit for the year to cash flow from
operations
|
|
|
|
|
|
2025
|
2024
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
Profit for the year
|
759
|
628
|
|
|
Adjustments for:
|
|
|
|
|
|
|
|
|
|
Net
financial expenses
|
153
|
115
|
|
|
Foreign
exchange (gains)/losses
|
(37)
|
25
|
|
|
Remeasurement
of contingent purchase consideration
|
8
|
4
|
|
|
Income
tax charge
|
315
|
269
|
|
|
|
|
|
|
|
Operating profit adjustments:
|
|
|
|
|
Impairment
loss on financial assets
|
21
|
10
|
|
|
Other
net impairment charges
|
2
|
-
|
|
|
Other
operating exceptional items
|
21
|
12
|
|
|
Depreciation
and amortisation
|
67
|
65
|
|
|
|
_____
|
_____
|
|
|
|
111
|
87
|
|
|
|
|
|
|
|
Contract
assets deduction in revenue
|
52
|
43
|
|
|
Share-based
payments cost
|
47
|
44
|
|
|
Share
of profits of associates and joint ventures
|
(6)
|
(10)
|
|
|
|
_____
|
_____
|
|
|
|
93
|
77
|
|
|
|
|
|
|
|
System Fund adjustments:
|
|
|
|
|
Depreciation
and amortisation
|
79
|
80
|
|
|
Impairment
loss on financial assets
|
19
|
9
|
|
|
Other
impairment charges
|
-
|
3
|
|
|
Share-based
payments cost
|
25
|
23
|
|
|
Share
of losses of associates
|
2
|
2
|
|
|
|
_____
|
_____
|
|
|
|
125
|
117
|
|
|
|
|
|
|
|
Working capital and other adjustments:
|
|
|
|
|
Increase
in deferred revenue
|
107
|
214
|
|
|
Changes
in working capital
|
(76)
|
(151)
|
|
|
Other
net adjustments
|
5
|
(7)
|
|
|
|
_____
|
_____
|
|
|
|
36
|
56
|
|
|
|
|
|
|
|
Cash
flows relating to operating exceptional items
|
(23)
|
8
|
|
|
Contract acquisition costs, net of repayments
|
(179)
|
(237)
|
|
|
|
_____
|
_____
|
|
|
Total adjustments
|
602
|
521
|
|
|
|
_____
|
_____
|
|
|
Cash flow from operations
|
1,361
|
1,149
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
|
In
2025, increase in deferred revenue includes $37m (2024: $100m) of
initial upfront payments received in relation to US co-brand credit
card agreements which will be recognised over the term of those
agreements.
Other
net adjustments includes dividends received from associates and
joint ventures of $6m (2024: $7m).
|
||
|
10.
|
Net debt
|
|
|
|
|
|
2025
|
2024
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
1,129
|
1,008
|
|
|
Loans and other borrowings - current
|
(478)
|
(398)
|
|
|
Loans and other borrowings - non-current
|
(3,723)
|
(2,876)
|
|
|
Lease liabilities - current
|
(28)
|
(26)
|
|
|
Lease liabilities - non-current
|
(378)
|
(388)
|
|
|
Principal amounts payable on maturity of derivative financial
instruments
|
145
|
(102)
|
|
|
|
_____
|
_____
|
|
|
Net debt*
|
(3,333)
|
(2,782)
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
|
* See
'Use of key performance measures and Non-GAAP
measures'.
|
||
|
|
|
|
|
|
|
In the
Group statement of cash flows, cash and cash equivalents is
presented net of $3m bank overdrafts (2024: $17m). Cash and cash
equivalents includes $27m (2024: $22m) with restrictions on
use.
|
||
|
|
Revolving Credit Facility (RCF)
|
|
|
|
|
In
December 2025, the Group entered into a new $1,500m syndicated
RCF which matures in 2030.The previous facility
of $1,350m was cancelled. A variable rate of interest is
payable on amounts drawn. There were no amounts drawn as at
31 December 2025 nor 31 December 2024. The maximum amount
drawn during the period was $75m (2024: $nil).
|
||
|
|
|
|
|
|
11.
|
Movement in net debt
|
|
|
|
|
|
2025
|
2024
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents, net of
overdrafts
|
94
|
(269)
|
|
|
Add back financing cash flows in respect of other components of net
debt:
|
|
|
|
|
|
|
|
|
|
Principal
element of lease payments
|
30
|
46
|
|
|
Issue
of long-term bonds
|
(990)
|
(834)
|
|
|
Repayment
of long-term bonds
|
403
|
547
|
|
|
Settlement
of currency swaps
|
-
|
45
|
|
|
Drawdown
of Revolving Credit Facility
|
(75)
|
-
|
|
|
Repayment
of Revolving Credit Facility
|
75
|
-
|
|
|
|
_____
|
_____
|
|
|
|
(557)
|
(196)
|
|
|
|
_____
|
_____
|
|
|
Increase in net debt arising from cash flows
|
(463)
|
(465)
|
|
|
|
|
|
|
|
Other movements:
|
|
|
|
|
Lease
liabilities
|
(19)
|
(36)
|
|
|
Increase
in accrued interest
|
(2)
|
(6)
|
|
|
Exchange
and other adjustments
|
(67)
|
(3)
|
|
|
|
_____
|
_____
|
|
|
|
(88)
|
(45)
|
|
|
|
_____
|
_____
|
|
|
Increase in net debt
|
(551)
|
(510)
|
|
|
|
|
|
|
|
Net debt at beginning of the year
|
(2,782)
|
(2,272)
|
|
|
|
_____
|
_____
|
|
|
Net debt at end of the year
|
(3,333)
|
(2,782)
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
12.
|
Ruby brand acquisition
|
|
|
During
the year, the Group completed the acquisition of the Ruby brand and
related intellectual property (together, the Ruby brand). The
transaction is accounted for as an asset acquisition.
The
Ruby brand has been recognised as an indefinite lived intangible
asset at a cost of €129m ($136m), comprising initial purchase
consideration, the fair value of contingent purchase consideration
at the acquisition date and attributable costs.
The
contingent purchase consideration relates to future payments to
incentivise growth payable in 2030 and/or 2035 totalling up to
€181m ($213m), contingent on the number of Ruby branded rooms
operated by the seller at the end of the preceding year. The
contingent purchase consideration liability, included within
non-current trade and other payables, is remeasured at each
reporting date with changes in value recognised in the Group income
statement.
|
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
|
|
|
InterContinental Hotels Group PLC
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
By:
|
/s/ C. Bates
|
|
|
Name:
|
C.
BATES
|
|
|
Title:
|
SENIOR
ASSISTANT COMPANY SECRETARY
|
|
|
|
|
|
|
Date:
|
17
February 2026
|
|
|
|
|