InterContinental Hotels posts higher FY operating profit, sets buyback

Intercontinental Hotels

17/02/2026 07:15

Overview

Hospitality company reported segment operating profit up 13% yr/yr

Adjusted EPS for full year 2025 rose 16%

Company announced $950 mln share buyback, which combined with dividend will total $1.2 bn shareholder returns in 2026

Outlook

Company expects less turbulent trading conditions in the US in 2026

Company anticipates continued growth in corporate travel budgets in 2026

Result Drivers

FEE MARGIN EXPANSION - Fee margin increased by 3.6 percentage points due to positive operating leverage and ancillary fee streams

RECORD HOTEL OPENINGS - Company opened a record 443 hotels, reflecting strong brand growth and expansion

NEW BRAND LAUNCHES - Launch of Noted Collection and acquisition of Ruby brand supported growth strategy

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Segment Revenue
$2.47 bln
FY Net Debt
$3.33 bln
FY Segment Operating Profit
$1.27 bln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 6 "hold" and 5 "sell" or "strong sell"

The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy."

The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nRSQ2531Ta

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)