InterContinental Hotels Group (IHG) H2 2024 earnings summary

Executive summary

• Delivered strong financial results in 2024, with revenue up 6.5% to $4,923m and operating profit from reportable segments up 10.3% to $1,124m compared to 2023. Returned over $1bn to shareholders through dividends and share buybacks, with a further $900m buyback approved for 2025.

• Net system size grew 4.3% to 987,125 rooms, with 371 hotel openings and 714 signings, expanding the pipeline to 2,210 hotels. Global RevPAR increased 3.0% year-over-year, with strong performance in EMEAA (+6.6%) and Americas (+2.5%), while Greater China saw a 4.8% decline due to tough comparatives.

• Enhanced loyalty and technology platforms, growing IHG One Rewards to over 145 million members, now responsible for over 60% of room nights globally. Launched new co-brand credit card agreements and expanded brand presence in high-growth markets.

Financial highlights

• Total revenue: $4,923m (+6.5% vs 2023); revenue from reportable segments: $2,312m (+6.8%).

• Operating profit: $1,041m (down 2.3% due to non-repeat of prior year exceptional items); operating profit from reportable segments: $1,124m (+10.3%).

• Basic EPS: 389.6¢; Adjusted EPS: 432.4¢ (+15% vs 2023).

• Fee margin: 61.2% (+1.9 pts); adjusted free cash flow: $655m.

• Total dividend: 167.6¢ (+10%); $800m share buyback completed in 2024, $900m approved for 2025.

Outlook and guidance

• Confident in continued system size and fee revenue growth, supported by a robust pipeline and strong brand demand.

• Industry fundamentals remain attractive, with long-term growth drivers such as travel demand and a growing global middle class.

• 2025 priorities include further investment in brands, technology, loyalty, and sustainability, with leverage expected at the lower end of the 2.5-3.0x target range.