InterContinental Hotels Group (IHG) Q1 2025 TU earnings summary

Executive summary

• Global RevPAR grew 3.3% year-over-year, with Americas up 3.5%, EMEAA up 5.0%, and Greater China down 3.5%.

• Comparable rooms revenue rose 2% for leisure, 3% for business, and 5% for groups globally.

• Opened 14,600 rooms across 86 hotels, more than double the same period last year; signed 25,800 rooms (158 hotels), pipeline up 9.4% year-over-year.

• Net system growth was 4.3% year-over-year (5% excluding the Venetian removal), with expectations for growth to accelerate through the year.

• On track to meet full-year profit expectations despite macroeconomic volatility.

Financial highlights

• Americas RevPAR up 3.5% year-over-year, with occupancy up 0.7 percentage points and ADR up 2.4%.

• EMEA and Asia region RevPAR up 5%, driven by 4% rate growth and 0.6 percentage point occupancy increase.

• Greater China RevPAR down 3.5%, but occupancy held steady and development activity was robust.

• Operating profit consensus for 2025 is $1,251 million, implying 11% growth over 2024.

• Adjusted EPS consensus is $0.497, implying 15% growth.

Outlook and guidance

• On track to meet full-year profit expectations, with consensus RevPAR growth at 2.3% but likely to moderate.

• Ancillary fee streams, including loyalty point sales and new U.S. co-brand credit card agreements, expected to add 130 basis points to fee margin expansion.

• Cautiously optimistic for the rest of the year, with positive on-the-books revenue for summer months.

• No material changes to investment priorities; cost base remains efficient and agile.

• Q2 on-the-books global revenue continues to show growth over last year.