REG - Interco. Hotels Grp - 2025 Third Quarter Trading Update

Intercontinental HotelsAnnouncement

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RNS Number : 4724E  InterContinental Hotels Group PLC  23 October 2025

InterContinental Hotels Group PLC

2025 Third Quarter Trading Update

23 October 2025

 

 Global RevPAR +1.4% YTD, after easing +0.1% in Q3;
 another strong quarter of development activity, with openings up +17% and
 signings up +18%;
 remain on track to meet full year consensus profit and earnings expectations

 

 Highlights

 

•  YTD global RevPAR +1.4%, with Americas +0.8%, EMEAA +3.8% and Greater
China -2.6%

•  Q3 global RevPAR +0.1%, with Americas -0.9%, EMEAA +2.8% and Greater
China -1.8%

•  Q3 global rooms revenue on a comparable basis comprised Business +4%,
offset by Leisure -2% and Groups -4%

•  Q3 occupancy +0.4%pts and average daily rate -0.4%

•  Gross system growth +7.2% YOY and net system growth +5.2% adjusting for
the impact of removing rooms previously affiliated with The Venetian Resort
Las Vegas (net growth +4.4% YOY on a reported basis)

•  Opened 14.5k rooms (99 hotels) in Q3, +17% YOY excluding NOVUM
conversions added to IHG's system

•  Global system of 1,011k rooms (6,845 hotels)

•  Signed 22.6k rooms (170 hotels) in Q3, +18% YOY

•  Global pipeline of 342k rooms (2,316 hotels), +4.7% YOY

•  New premium collection brand to launch in the coming months

•  $700m of 2025's $900m share buyback programme completed to date,
reducing the share count by 3.9%

•  On track to return over $1.1bn to shareholders in 2025 through share
repurchases and dividend payments

•  Expect to finish 2025 in line with consensus profit and earnings
expectations, and in line with our growth algorithm

 

 Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts, said:

 

"We are pleased with our performance and the continued growth of our brands to
date in 2025, and we remain on track to meet full year consensus profit and
earnings expectations. As anticipated, RevPAR growth in Q3 was similar to the
prior quarter, with another strong performance in EMEAA and further
improvement in Greater China, though the US continued to see slower trading
conditions. Overall, we continue to benefit from the power of our globally
diverse footprint.

 

Growing demand for our world class brands continues, with 2025 set to be one
of our biggest ever years for both openings and signings. We opened 14.5k
rooms across 99 hotels in the quarter, up +17% year-on-year excluding the
NOVUM conversions this year and last, and we signed 22.6k rooms across 170
properties, up +18%, with great progress in all three regions. Recognising
strong guest and owner interest in the large and fast-growing premium segment,
we are excited to announce we will be bringing a new collection brand to
market in the coming months, positioned in upscale to upper upscale. This will
build on the well-established successes we've already delivered with our other
collection and conversion brands - Vignette, voco and Garner.

 

Long-term structural drivers of both travel demand and supply remain
compelling, and while near-term macro-economic challenges persist in some
markets, others are showing improvement or sustained growth. We continue to
demonstrate IHG's ability to capture demand across geographies, chain scales
and stay occasions, which forms the foundation of resilient strength in our
business. The power of our enterprise platform is clearly showing in 2025 and
drives our growth algorithm. This delivers compound earnings growth by
increasing fee revenues through the combination of RevPAR, system expansion
and ancillary fee streams, which, together with a highly efficient cost base,
helps to grow margins and, along with our strong cash generation, allows us to
reinvest in our business and return surplus capital to shareholders. We remain
confident in a strong outcome for the year and further delivery beyond."

 

 Regional performance

 

Americas

Year-to-date, RevPAR has grown +0.8% for the region and +0.4% in the US. Q3
RevPAR was -0.9% for the region and -1.6% in the US. Q3 occupancy for the
region was down -0.3%pts to 71.8%, and rate was down -0.5%. Q3 rooms revenue
on a comparable hotels basis, analysed by guest stay occasion, saw Business
ahead, but this was offset by a decline in Leisure, and Groups was further
behind compared with 2024 levels. Whilst the US continued to see some slower
trading conditions, we remain confident for the return to growth in due course
when economic uncertainty further subsides and the travel industry's
fundamental tailwinds prevail.

 

Gross system growth was +3.6% YOY and +2.3% YTD, with 2.7k rooms (28 hotels)
opened in the quarter. Excluding the impact of removing 7.1k rooms that were
previously affiliated to IHG's system with The Venetian Resort Las Vegas, net
system growth was +1.5% YOY and +0.5% YTD; including the impact, the net
system size change was +0.2% YOY and -0.8% YTD. Signings for 7.6k rooms (79
hotels) were added to the pipeline in the quarter, an increase of +14% on last
year. These included 33 hotels signed across the Holiday Inn Brand Family, 16
across our extended stay brands and eight voco conversions. Garner, our
midscale conversion brand, also saw good further progress in the quarter with
another nine signings, with the brand now having 25 open and 49 pipeline
hotels in the region. Conversions represented over half of all rooms opened
and signed in the quarter.

 

EMEAA

We saw another quarter of strong demand for this diverse region. Q3 RevPAR was
up +2.8%, taking year-to-date growth to +3.8%. Occupancy for the quarter was
up +1.6%pts to 75.3%, and rate up +0.6%. By major geographic markets within
the region, RevPAR ranged from +0.1% in Continental Europe, where performances
in Germany and France had tough comparatives and a less beneficial events
calendar this year, to up +2.8% in the UK, +3.3% in East Asia & Pacific,
and +9.5% in the Middle East.

 

Gross system growth was +10.4% YOY and +6.0% YTD, with 4.2k rooms (33 hotels)
opened in the quarter which represents an increase of +25% on the same quarter
last year when excluding the NOVUM conversions (1.2k this year and 6.2k last
year). Net system growth was +9.1% YOY and +5.2% YTD. 2025 is on track to be a
record year of system growth for the region. Signings for 7.1k rooms (45
hotels) were added to the pipeline in the quarter, growth of +22% on last
year. There were 12 hotels signed across our Luxury & Lifestyle brands,
nine Crowne Plaza and eight Holiday Inn signings, as well as five further
Garner properties as it develops across the region. Conversions represented
over 60% of all room openings and approaching 40% of room signings in the
quarter.

 

Greater China

RevPAR was -1.8% lower in Q3, a further sequential improvement on -3.0% in the
previous quarter and compares to -4.8% for FY 2024. Occupancy for the quarter
was up +0.6%pts to 64.4%, while rate was down -2.7%. Tier 1 cities saw RevPAR
-1.2%, whilst Tier 2-4 cities at -3.9% were further impacted by increased
international outbound leisure trips. We continue to remain encouraged by the
breadth and strength of the region's economic growth, and the attractive
long-term secular growth drivers, which are also fuelling excellent levels of
hotel development activity for IHG in the region.

 

Gross system growth was +12.8% YOY and +9.2% YTD, with 7.6k rooms (38 hotels)
opened in the quarter, an increase of almost +40% on the same quarter last
year. Net system growth was +9.8% YOY and +7.3% YTD. Signings for 7.9k rooms
(46 hotels) were added to the pipeline, an increase of almost +20% on last
year, and included 17 Holiday Inn Express and 16 Holiday Inn properties. There
were also six voco signings, with conversions representing around 40% of all
rooms opened and signed in the quarter.

 

 Launch of new collection brand

 

To meet growing guest and owner demand, IHG will launch a new collection brand
within the large, fast-growing premium segment in the coming months,
positioned in upscale to upper upscale. The new brand will initially focus on
our EMEAA region where there is a significant proportion of high-quality
hotels with their own unique identity, and where a collection brand will
expand our offer for guests and allow more owners to benefit from our
enterprise platform. The brand will complement our versatile premium
conversion brand, voco, which has already reached 225 open and pipeline hotels
across more than 30 countries since its launch in 2018. It will also look to
replicate the success of Vignette Collection, launched in 2021, which is
positioned higher in the Luxury & Lifestyle category and already tracking
ahead of its goal to reach 100 hotels in a decade, currently with 27 open and
a further 41 pipeline properties.

 

 Share buyback progress

 

As announced in February, a $900m share buyback programme is returning surplus
capital to shareholders in 2025. This follows the $800m programme in 2024,
$750m in 2023 and the $500m programme announced in 2022, which already reduced
the total number of voting rights in the Company by 4.6%, 6.1% and 5.0%,
respectively. The 2025 programme is 78% complete with $700m (£530m) having
been cumulatively spent to date, repurchasing 6.1 million shares. The 2025
programme to date has therefore reduced the total number of voting rights in
the Company by a further 3.9% to 152.4 million as at market close on Wednesday
22 October 2025.

 

The $900m share buyback programme together with approximately $270m of
ordinary dividend payments will have returned around $1,170m in total to
shareholders in 2025. This is equivalent to 5.9% of IHG's $19.8bn (£15.8bn)
market capitalisation at the start of 2025, and 6.2% of IHG's most recent
$19.0bn (£14.2bn) market capitalisation.

 Financing update

 

In September 2025, the Group issued a €850m bond at a coupon of 3.375%,
repayable in September 2030. Currency swaps were transacted at the same time
as issuance in order to convert the proceeds and interest flows to US Dollars.
This fixed the bond debt at $990m, with interest payable semi-annually of
4.87%.

 

In August 2025 a £300m bond matured, with future maturities in August 2026
(£350m), May 2027 (€500m), October 2028 (£400m), November 2029 (€600m),
September 2030 (€850m) and September 2031 (€750m). After currency swaps,
the Group now has a total of $4.1bn bonds outstanding, with a blended
borrowing cost of approximately 4.3%.

 

As set out at the time of IHG's half year results in August 2025, after
completing this year's buyback programme to return $900m of surplus capital to
shareholders, and based on analyst consensus, leverage at the end of 2025 is
expected to be around the middle of our net debt:adjusted EBITDA target range
of 2.5-3.0x.

 

 Change in trading currency of IHG's Ordinary Shares to US Dollars

 

IHG intends to change the currency in which its Ordinary Shares are traded on
the London Stock Exchange from British Pounds (GBP) to US Dollars (USD). This
change has recently become possible whilst maintaining FTSE index inclusion,
following updates to the FTSE UK Index Series Ground Rules administered by the
FTSE Russell Group.

 

IHG has reported its financial results in USD for the past 17 years. Changing
its share price currency to match its reporting currency will help reduce the
translational impact of exchange rate fluctuations on the share price,
therefore better aligning the share price to financial performance, and
simplifying the investment appraisal of IHG.

 

The change does not impact the nominal currency of IHG's shares, which will
remain in GBP. The change does not impact IHG's London listing in any other
way, and has no impact on IHG's ADR listing in New York.

 

For the benefit of UK-based private individual registered shareholders in IHG,
dividend payments will still be made in GBP. Registered shareholders will be
able to make an election to IHG's share registrar, Equiniti, if they wish to
instead receive their dividend payments in USD. Furthermore, for UK-based
private individual registered shareholders who do not have a USD bank account
or access to a multi-currency share dealing service, Equiniti will convert the
proceeds from any future sale of shares to GBP at the prevailing rate on the
settlement date.

 

IHG is working with Equiniti and other partners with the intention of enabling
the change from the start of January 2026. Notifications will be sent to the
London Stock Exchange, the FTSE Russell Group (for index calculation purposes)
and the FCA in due course, and a further announcement to confirm the change
will also be made nearer to the time.

 

For further information, please contact:

Investor Relations:         Stuart Ford (+44 (0)7823 828 739); Kate
Carpenter (+44 (0)7825 655 702);

Joe Simpson (+44 (0)7976 862 072)

Media Relations:           Neil Maidment (+44 (0)7970 668 250); Mike
Ward (+44 (0)7795 257 407)

 

Conference call for analysts and institutional investors:

Elie Maalouf, Chief Executive Officer, and Michael Glover, Chief Financial
Officer, will host a conference call at 9:30am (London time) today, 23 October
2025. A listen-only audio webcast can be accessed at
https://www.investis-live.com/ihg/68b19914b0ed20000fddc262/hruna
(https://urldefense.com/v3/__https:/www.investis-live.com/ihg/68b19914b0ed20000fddc262/hruna__;!!EOxaMA!QTNESrsT4ArWg1d2j6Sja7tiF2fFTqUkr9QZSa0DtGdmbkvi953kHfelsTUd65ARENxt7VcGZqPuB1QukicsPg$)
or via www.ihgplc.com/en/investors/results-and-presentations
(https://urldefense.com/v3/__https:/www.ihgplc.com/en/investors/results-and-presentations__;!!EOxaMA!UQW-l3BiA8XXUiPMd4eGsANkqfgpOAuKdUs9F8vIC-aM7gqhkAVKAWJvBF8MUhNAo70bweitd6U_Wa_E$)
.

 

Analysts and institutional investors wishing to ask questions should use the
following dial-in details for a Q&A facility:

 UK:                           020 3936 2999
 US:                           646 233 4753
 Other international numbers:  Click here (https://www.netroadshow.com/events/global-numbers?confId=71541)
 Passcode:                     720082

 

An archived replay is expected to be available within 24 hours and will remain
available, accessed at www.ihgplc.com/en/investors/results-and-presentations
(https://www.ihgplc.com/en/investors/results-and-presentations) .

 

Website:

The full release and supplementary data will be available on
www.ihgplc.com/en/investors/results-and-presentations
(https://www.ihgplc.com/en/investors/results-and-presentations) from 7:00am
(London time) on 23 October 2025.

 

About IHG Hotels & Resorts:

IHG Hotels & Resorts (https://www.ihgplc.com) (tickers: LON:IHG for
Ordinary Shares; NYSE:IHG for ADRs) is a global hospitality company, with a
purpose to provide True Hospitality for Good.

 

With a family of 20 hotel brands and IHG One Rewards
(https://urldefense.com/v3/__http:/email.investis.com/ls/click?upn=T-2Fn3OVRavEvfp-2BcwHA4A99imKpoqIJxvmXwKaaQPh-2F0-3DygFb_ojq2lu66bX8JNKV7VmBiOZ2gLVi27eAYFqE40NVToEeeHiYKncxdBspif1mQlBK7ih-2B5rzYsrNnDqgQn1wszyhe5xRGUvld0NWW3KwpUnWtxiJsqB0ttFTF4eNwtEIP6Oq8lyDW5KoQFtyJe-2Bm18YjgiHAhr23RBEd1PKOwFYY8z7PScBuJSe1ztaC6p56jTzGST-2Fvc-2BetCMz1pPnnGDUjyivzqA2pH29Vmiz8T-2BmmunkBHoR5LSxI1VjgVEsv7cApWyuKiG8-2BGNJnO5ejYTcA-3D-3D__;!!EOxaMA!CjjXZ7KAZ7idANJdcoLB7daWoS810tckeGbds16Y8bqw50-1iPUaVwYwmb01-ewc$)
, one of the world's largest hotel loyalty programmes with over 145 million
members, IHG has more than one million rooms across 6,800 open hotels in over
100 countries, and a development pipeline of more than 2,300 properties.

 

-     Luxury & Lifestyle: Six Senses (https://www.sixsenses.com/) ,
Regent Hotels & Resorts (https://www.regenthotels.com/) , InterContinental
Hotels & Resorts
(http://www.intercontinental.com/hotels/gb/en/reservation) , Vignette
Collection (https://www.vignettecollectionhotels.com/) , Kimpton Hotels &
Restaurants (https://www.ihg.com/kimptonhotels/hotels/gb/en/reservation) ,
Hotel Indigo (http://www.ihg.com/hotelindigo/hotels/gb/en/reservation)

-     Premium: voco hotels
(https://www.ihg.com/voco/hotels/gb/en/reservation) , Ruby
(https://www.ruby-hotels.com/) , HUALUXE Hotels & Resorts
(https://www.ihg.com/hualuxe/hotels/gb/en/reservation) , Crowne Plaza
(http://www.ihg.com/crowneplaza/hotels/gb/en/reservation) Hotels & Resorts
(http://www.ihg.com/crowneplaza/hotels/gb/en/reservation) , EVEN Hotels
(http://www.ihg.com/evenhotels/hotels/us/en/reservation)

-     Essentials: Holiday Inn Express
(http://www.ihg.com/holidayinnexpress/hotels/gb/en/reservation) , Holiday Inn
Hotels & Resorts (http://www.ihg.com/holidayinn/hotels/gb/en/reservation)
, Garner hotels (https://www.ihg.com/content/us/en/garner-hotels) , avid
hotels (https://www.ihg.com/avidhotels/hotels/us/en/reservation)

-     Suites: Atwell Suites (https://www.atwellsuites.com/) , Staybridge
Suites (http://www.ihg.com/staybridge/hotels/gb/en/reservation) , Holiday Inn
Club Vacations
(https://www.ihg.com/holidayinnclubvacations/hotels/us/en/reservation) ,
Candlewood Suites (http://www.ihg.com/candlewood/hotels/us/en/reservation)

-     Exclusive Partners: Iberostar Beachfront Resorts
(https://www.ihg.com/content/us/en/iberostar-beachfront-resorts)

 

InterContinental Hotels Group PLC is the Group's holding company and is
incorporated and registered in England and Wales. Approximately 385,000 people
work across IHG's hotels and corporate offices globally.

 

Visit us online for more about our hotels and reservations
(http://www.ihg.com) and IHG One Rewards
(https://urldefense.com/v3/__http:/email.investis.com/ls/click?upn=T-2Fn3OVRavEvfp-2BcwHA4A99imKpoqIJxvmXwKaaQPh-2F0-3DygFb_ojq2lu66bX8JNKV7VmBiOZ2gLVi27eAYFqE40NVToEeeHiYKncxdBspif1mQlBK7ih-2B5rzYsrNnDqgQn1wszyhe5xRGUvld0NWW3KwpUnWtxiJsqB0ttFTF4eNwtEIP6Oq8lyDW5KoQFtyJe-2Bm18YjgiHAhr23RBEd1PKOwFYY8z7PScBuJSe1ztaC6p56jTzGST-2Fvc-2BetCMz1pPnnGDUjyivzqA2pH29Vmiz8T-2BmmunkBHoR5LSxI1VjgVEsv7cApWyuKiG8-2BGNJnO5ejYTcA-3D-3D__;!!EOxaMA!CjjXZ7KAZ7idANJdcoLB7daWoS810tckeGbds16Y8bqw50-1iPUaVwYwmb01-ewc$)
. To download the IHG One Rewards app, visit the Apple App
(https://apps.apple.com/us/app/ihg-hotel-deals-rewards/id368217298) or Google
Play (https://play.google.com/store/apps/details?id=com.ihg.apps.android)
stores.

 

For our latest news, visit our Newsroom
(https://www.ihgplc.com/en/news-and-media) and follow us on LinkedIn
(https://www.linkedin.com/company/ihghotels&resorts/) .

 

 

Appendix 1: RevPAR(a) movement summary at constant exchange rates (CER)

 

                Q3 2025 vs 2024            Q3 YTD 2025 vs 2024
                RevPAR  ADR     Occupancy  RevPAR   ADR      Occupancy
 Global         +0.1%   -0.4%   +0.4%pts   +1.4%    +0.8%    +0.4%pts
 Americas       -0.9%   -0.5%   -0.3%pts   +0.8%    +0.7%    +0.1%pts
 EMEAA          +2.8%   +0.6%   +1.6%pts   +3.8%    +2.1%    +1.2%pts
 Greater China  -1.8%   -2.7%   +0.6%pts   -2.6%    -3.3%    +0.4%pts

 

 

Appendix 2: RevPAR(a) movement at CER vs actual exchange rates (AER)

 

                Q3 2025 vs 2024                     Q3 YTD 2025 vs 2024
                CER (as above)  AER     Difference  CER (as above)  AER      Difference
 Global         +0.1%           +1.1%   +1.0%pts    +1.4%           +1.7%    +0.3%pts
 Americas       -0.9%           -0.9%   0.0%pts     +0.8%           +0.4%    -0.4%pts
 EMEAA          +2.8%           +5.7%   +2.9%pts    +3.8%           +5.5%    +1.7%pts
 Greater China  -1.8%           -1.5%   +0.3%pts    -2.6%           -2.7%    -0.1%pts

 

 

Appendix 3: System and pipeline summary of Q3 2025 YTD and YOY growths, and
closing positions (rooms)

 

                System                                                                                   Pipeline
                Openings  Removals(b)  Net      Total      YTD%      YOY%      YTD%         YOY%         Signings  Total
                                                           Reported  Reported  Adjusted(b)  Adjusted(b)
 Global         45,872    (22,241)     23,631   1,010,756  +2.4%     +4.4%     +3.1%        +5.2%        73,730    341,758
 Americas       12,095    (16,464)     (4,369)  523,625    -0.8%     +0.2%     +0.5%        +1.5%        17,114    109,145
 EMEAA          16,095    (2,189)      13,906   280,380    +5.2%     +9.1%     +5.2%        +9.1%        31,943    115,228
 Greater China  17,682    (3,588)      14,094   206,751    +7.3%     +9.8%     +7.3%        +9.8%        24,673    117,385

 

(a.    ) RevPAR (revenue per available room), ADR (average daily rate) and
occupancy are on a comparable basis, based on comparability as at 30 September
2025 and includes hotels that have traded in all months in both the current
and the prior year. The principal exclusions in deriving these measures are
new openings, properties under major refurbishments and removals. See 'Use of
key performance measures and non-GAAP measures' in IHG's full year and half
year results announcements for further information on the definitions.

 

(b.    ) Removals include 7,092 rooms previously affiliated with The
Venetian Resort Las Vegas which exited IHG's system in January 2025. The
adjusted measures of YTD system growth and YOY system growth are presented for
the Americas region and globally to show the impact of if these rooms had been
excluded from the comparable opening position.

 

Cautionary note regarding forward-looking statements:

This announcement contains certain forward-looking statements as defined under
United States law (Section 21E of the Securities Exchange Act of 1934) and
otherwise. These forward-looking statements can be identified by the fact that
they do not relate only to historical or current facts. Forward-looking
statements often use words such as 'anticipate', 'target', 'expect',
'estimate', 'intend', 'plan', 'goal', 'believe' or other words of similar
meaning. These statements are based on assumptions and assessments made by
InterContinental Hotels Group PLC's management in light of their experience
and their perception of historical trends, current conditions, expected future
developments and other factors they believe to be appropriate. By their
nature, forward-looking statements are inherently predictive, speculative and
involve risk and uncertainty. There are a number of factors that could cause
actual results and developments to differ materially from those expressed in,
or implied by, such forward-looking statements. The main factors that could
affect the business and the financial results are described in the 'Risk
Factors' section in the current InterContinental Hotels Group PLC's Annual
report and Form 20-F filed with the United States Securities and Exchange
Commission.

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