InterContinental Hotels Group
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InterContinental Hotels Group (IHG) investor relations material

InterContinental Hotels Group H2 2025 (Q&A) earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H2 2025 (Q&A) earnings summary17 Feb, 2026

Executive summary

  • RevPAR grew 1.5% in 2025, with system size reaching 1,026k rooms (+6.6% gross, +4.7% net YOY), reflecting broad geographic reach, strong brands, and a resilient operating model.

  • EBIT increased 13% and adjusted EPS rose 16% year-over-year, supported by a $900 million share buyback and over $1.1bn returned to shareholders.

  • Record hotel openings in 2025, with 65.1k rooms opened (+10% YOY), and strong signings up 9% year-over-year.

  • Strong growth in conversions, representing about half of all openings and 40% of all signings; Ruby brand acquisition and Noted Collection launch enhanced portfolio.

  • Launched a new $950 million share buyback program and introduced the Noted Collection brand in early 2026.

Financial highlights

  • Fee margin expanded by 360 basis points to 64.8%, driven by operating leverage and ancillary fee growth.

  • Revenue from reportable segments rose 7% to $2,468m; fee business revenue up 7% to $1,897m.

  • Adjusted free cash flow reached $893m, with share buybacks of $900m reducing share count by 4.8%.

  • Costs reduced by 3% in 2025, with ongoing cost control expected to keep increases around 1% in 2026.

  • Branded residences generated $5–10 million in fees, with substantial increases expected from 2027 onward.

Outlook and guidance

  • Early 2026 trading is positive across all regions, with confidence in continued system growth and RevPAR improvement.

  • Net unit growth consensus for 2026 is 4.4%, with more upside than downside anticipated.

  • FY26 interest expense expected to rise to $230m–$250m due to higher net debt and borrowing costs.

  • Medium- to long-term ambitions: high-single-digit fee revenue growth, 100–150bps annual fee margin expansion, 12–15% adjusted EPS CAGR.

  • Branded residences and ancillary revenues are expected to become more material contributors to growth.

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Q1 2026 TU7 May, 2026
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Q1 2026 TU7 May, 2026

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Frequently asked questions

InterContinental Hotels Group PLC (IHG) is one of the world's largest hotel companies, with more than 5,800 hotels in nearly 100 countries and territories. IHG operates hotels under several brands, including InterContinental®, Holiday Inn®, Crowne Plaza®, Hotel Indigo®, Kimpton® Hotels and Resorts, and many others. As of December 31, 2021, InterContinental Hotels Group PLC, manages and franchises over 5,991 hotels representing approximately 880,327 rooms worldwide. The Company is based in Denham, the United Kingdom.

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