IHG Hotels & Resorts reports the signing of 97 Luxury & Lifestyle hotels in 2025
InterContinental Hotels Group PLC delivered a resilient financial performance for the year ended December 31, 2025, underpinned by disciplined cost control, margin expansion and record development activity.Revenue from reportable segments rose 7 per cent to $2,468m, while revenue from the fee business increased 7 per cent to $1,897m. Operating profit from reportable segments climbed 13 per cent to $1,265m, supported by a 360 basis point expansion in fee margin to 64.8 per cent. Adjusted EPS advanced 16 per cent to 501.3 cents, reflecting higher earnings and a 4.2 per cent reduction in weighted average shares.On an IFRS basis, total revenue grew 5 per cent to $5,189m and operating profit increased 15 per cent to $1,198m. Basic EPS rose 26 per cent to 490.9 cents. The total dividend per share was lifted 10 per cent to 184.5 cents.Net cash from operating activities strengthened to $898m, while adjusted free cash flow rose to $893m, achieving more than 100 per cent conversion of adjusted earnings. Net debt increased 20 per cent to $3,333m, primarily driven by over $1.1bn returned to shareholders through $900m in share buybacks and $270m in dividends, alongside $120m in acquisition spend. The net debt to adjusted EBITDA ratio stood at 2.5x.Operationally, global RevPAR rose 1.5 per cent, with EMEAA up 4.6 per cent, Americas up 0.3 per cent and Greater China down 1.6 per cent. The group opened a record 443 hotels, adding 65,078 rooms, taking the global estate to 1,026,177 rooms across 6,963 hotels. The pipeline reached 339,526 rooms, representing 33 per cent of the current system size.The Board proposed a final dividend of 125.9 cents and launched a new $950m buyback programme, targeting cumulative shareholder returns of more than $5bn over five years.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 the adjusted EPS growth of +16 per cent. 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 per cent.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 per cent 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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