REG - Interco. Hotels Grp - Final Results
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RNS Number : 2531T InterContinental Hotels Group PLC 17 February 2026
InterContinental Hotels Group PLC
Full Year Results to 31 December 2025
17 February 2026
Strong performance with operating profit from reportable segments(1) +13% and
Adjusted EPS(1) +16%;
record hotel openings; $1.1bn+ shareholder returns; confident in long-term
growth drivers
12 months ended 31 December 2025 2024 % change Underlying(1)
% change
Results from reportable segments(1):
Revenue(1) $2,468m $2,312m +7% +6%
Revenue from fee business(1) $1,897m $1,774m +7% +6%
Operating profit(1) $1,265m $1,124m +13% +12%
Fee margin(1) 64.8% 61.2% +3.6%pts
Adjusted EPS(1) 501.3¢ 432.4¢ +16%
IFRS results:
Total revenue $5,189m $4,923m +5%
Operating profit $1,198m $1,041m +15%
Basic EPS 490.9¢ 389.6¢ +26%
Total dividend per share 184.5¢ 167.6¢ +10%
Net debt(1) $3,333m $2,782m +20%
1. Definitions for non-GAAP measures can be found in the 'Key
performance measures and non-GAAP measures' section, along with
reconciliations of these measures to the most directly comparable line items
within the Financial Statements.
Trading and revenue
● Global RevPAR(1) +1.5%, with Americas +0.3%, EMEAA +4.6% and Greater
China -1.6%
● Average daily rate +0.8%, occupancy +0.5%pts
● Total gross revenue(1) $35.2bn, +5%
System size and pipeline
● Gross system growth +6.6% and net system growth of +4.7% adjusting
for the impact of removing rooms previously affiliated with The Venetian
Resort Las Vegas (net growth of +4.0% on a reported basis)
● Opened 65.1k rooms, up +10% YOY, across a record 443 hotels
● Global estate of 1,026k rooms (6,963 hotels)
● Signed 102.1k rooms (694 hotels), up +9% YOY excluding Ruby
acquisition in 2025 and NOVUM signings in 2024
● Global pipeline of 340k rooms (2,292 hotels), up +4% YOY, and
represents 33% of current system size
Margin and profit
● Fee margin(1) 64.8%, up +3.6%pts, driven by positive operating
leverage and step-ups in ancillary fee streams
● Operating profit from reportable segments(1) of $1,265m, up +13%,
including a $1m favourable currency benefit
● IFRS operating profit of $1,198m includes System Fund and
reimbursables $46m loss (2024: $83m loss) and $21m exceptional costs (2024:
$nil)
● Adjusted EPS(1) of 501.3¢, up +16%, includes adjusted interest
expense(1) of $200m (2024: $165m), an adjusted tax(1) rate of 27% (2024: 27%)
and a 4.2% reduction in the basic weighted average number of ordinary shares
Cash flow and net debt
● Net cash from operating activities of $898m (2024: $724m) and
adjusted free cash flow(1) of $893m (2024: $655m), driven by higher profit and
lower outflows related to capital expenditure, tax and the System Fund
● Net debt(1) increase of $551m, driven by $1.1bn+ of shareholder
returns through dividend payments and share buybacks; $120m acquisition spend;
$69m foreign exchange adverse impact on net debt
● Adjusted EBITDA(1) of $1,332m, +12% YOY; net debt:adjusted EBITDA
ratio of 2.5x
Shareholder returns
● $900m share buyback and $270m of ordinary dividends paid to
shareholders in 2025
● Final dividend of 125.9¢ proposed, +10%, resulting in a total
dividend for the year of 184.5¢, +10%
● New $950m buyback programme launched, which together with ordinary
dividend payments is expected to return $1.2bn+ to shareholders in 2026,
resulting in cumulative returns of more than $5bn over 5 years
Strong delivery on our clear framework to drive value creation, as set out at
the start of 2024
● Targeting compound growth in adjusted EPS of +12-15% annually on
average over the medium to long term
● Strong further progress in 2025 on growing our brands, expanding key
geographic markets, developing our leading technology and enterprise platform,
driving ancillary fee streams, and returning surplus capital to shareholders
● New premium brand - Noted Collection - launched today, and
acquisition of urban lifestyle brand - Ruby - are two of many achievements to
further strengthen our portfolio and growth potential
Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts, said:
"Thanks to the hard work of our teams we delivered excellent financial
performance in 2025 and in the face of some turbulent trading conditions.
There was also further progress on our clear strategy to unlock IHG's full
potential for all stakeholders. We accelerated the growth of our brands,
expanded in key markets, strengthened hotel owner returns, drove ancillary fee
streams, delivered cost efficiencies and returned surplus capital to
shareholders. Collectively, this powered adjusted EPS growth of +16%.
We opened a record 443 hotels in the year and added another 694 into our
pipeline, including the highest ever hotel openings and signings in Greater
China, as owner demand for our brands continues to increase globally. With
over 6,900 open hotels around the world, as we look to the future, our
pipeline of a further 2,300 properties is equivalent to system growth of +33%.
We are delighted to launch today our new brand - Noted Collection - in the
large and fast-growing premium segment, which I am confident will build on the
well-established successes already achieved with our other collection and
conversion brands - Vignette, voco and Garner. The launch of Noted Collection
follows the acquisition in 2025 of the Ruby brand, which further enriches our
Premium portfolio with an exciting, distinct and high-quality offer for both
guests and owners in popular city destinations. Ruby signings are growing and
this year we have already successfully taken the brand into the US market.
We constantly invest in our powerful enterprise to make sure IHG delivers for
guests and owners, including improving and growing our brands and overall
portfolio, driving increased loyalty contribution, and rolling out leading
technology. Our cash generation and strong balance sheet support our
investments to drive growth, and we continue to sustainably increase our
ordinary dividend as well as regularly return surplus capital through share
buybacks. The Board is pleased to propose a fourth consecutive year of
increasing the dividend by +10% and the launch of a new $950m share buyback
programme. Cumulatively over five years, this will mean IHG has returned more
than $5bn to our shareholders. Supported by attractive long-term industry
demand drivers and our proven ability to capitalise on our scale and diverse
fee streams across segments and geographies, we enter 2026 with confidence."
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)
Presentation for analysts and institutional shareholders:
A pre-recorded webcast presented by Elie Maalouf, Chief Executive Officer, and
Michael Glover, Chief Financial Officer, will be available from 7:00am (London
time) today, 17 February 2026, at
www.ihgplc.com/en/investors/results-and-presentations. This same website link
also provides access to the full release and supplementary information pack
covering RevPAR, system size and pipeline data.
A live Q&A session will be hosted later this morning at 9:30am (London
time). This can be listened to via
www.ihgplc.com/en/investors/results-and-presentations (pre-registration
required). Analysts and institutional investors wishing to ask questions are
required to register at the IHG Hotels & Resorts Full Year 2025 Results
Live Q&A Registration Page
(https://registrations.events/direct/LON45116971000000). Dial-in details for
the Q&A are provided when you register and will appear in the calendar
invite sent to you following registration.
An archived replay including the Q&A session is expected to be available
within 24 hours and will remain available at
www.ihgplc.com/en/investors/results-and-presentations.
About IHG Hotels & Resorts:
IHG Hotels & Resorts (tickers: LON:IHG for Ordinary Shares, ISIN:
GB00BHJYC057; NYSE:IHG for ADRs, ISIN: US45857P8068) 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, one of the world's
largest hotel loyalty programmes with over 160 million members, IHG has more
than one million rooms across 6,963 open hotels in over 100 countries, and a
development pipeline of a further 2,300 properties.
- Luxury & Lifestyle: Six Senses, Regent Hotels & Resorts,
InterContinental Hotels & Resorts, Vignette Collection, Kimpton Hotels
& Restaurants, Hotel Indigo
- Premium: voco hotels, Ruby, HUALUXE Hotels & Resorts, Crowne
Plaza Hotels & Resorts, EVEN Hotels
- Essentials: Holiday Inn Express, Holiday Inn Hotels & Resorts,
Garner hotels, avid hotels
- Suites: Atwell Suites, Staybridge Suites, Holiday Inn Club
Vacations, Candlewood Suites
- Exclusive Partners: Iberostar Beachfront Resorts
InterContinental Hotels Group PLC is the Group's holding company and is
incorporated and registered in England and Wales. Approximately 400,000 people
work across IHG's hotels and corporate offices globally.
Visit us online for more about our hotels and reservations and IHG One
Rewards. To download the IHG One Rewards app, visit the Apple App or Google
Play stores. For our latest news, visit our Newsroom and follow us on
LinkedIn.
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.
Summary of recent trading and outlook
Key trends by region and stay occasion
Reflecting the breadth of our global footprint, RevPAR grew +1.5% (Q1 +3.3%,
Q2 +0.3%, Q3 +0.1%, Q4 +1.6%).
In the Americas, despite some turbulent trading conditions, RevPAR grew +0.3%
(Q1 +3.5%, Q2 -0.5%, Q3 -0.9%, Q4 -1.4%), with occupancy -0.1%pts and rate
+0.5%. US RevPAR declined by -0.1% for the year, with growth of +3.5% in Q1
moving to a decline of -0.9% in Q2 driven by the shift in timing of Easter
between March and April and the onset of a reduction in certain types of
business and leisure travel, such as lower international inbound demand and
less government travel. US RevPAR declined -1.6% in Q3 and -2.0% in Q4, the
most recent quarter facing a tougher year-over-year comparison due to
hurricane-related demand in 2024. Outside of the US, RevPAR for the year grew
+4.0%, with growth in each of Canada, Mexico and our Latin America &
Caribbean sub-region. Rooms revenue for the overall region on a comparable
hotel basis in 2025 was strongest for Business bookings which were up +2% YOY,
whilst Groups was down -1% and Leisure was -2% on 2024 levels.
Looking ahead to 2026, less turbulent trading conditions in the US and
stronger demand are expected for the industry. Research and consumer surveys
point to continued prioritisation of spend on travel, and business surveys
indicate expectations for increasing corporate travel budgets in 2026.
Economic growth and investment, stable employment, favourable tax policies and
the anticipated further easing of interest rates are all expected to support
this. Major events such as the FIFA World Cup will add additional demand, and,
particularly from Q2 2026 in the US, some comparatives become easier given the
slowdown in certain types of travel that occurred onwards from Q2 2025.
For EMEAA, RevPAR grew +4.6%, with occupancy +1.6%pts and rate +2.4%. Strong
RevPAR growth of +5.0% in Q1 was followed by +3.0% in Q2, in part due to fewer
travel-related international events compared to the prior year. RevPAR grew
+2.8% in Q3 and then strongly re-accelerated to +7.1% in Q4 driven broadly
evenly by increases in occupancy and rate and with good growth in each of
Business, Leisure and Groups demand drivers. By major geographic markets,
RevPAR for the year was +1.1% in the UK, +4.2% in Continental Europe, +5.5%
for the East Asia & Pacific region and +8.8% in the Middle East. Further
robust growth is expected for this diverse region in 2026.
In Greater China, RevPAR was -1.6%, with occupancy +0.5%pts higher and rate
-2.4% lower. Q1 RevPAR of -3.5% was followed by -3.0% in Q2, further improving
sequentially to -1.8% in Q3 and then returning to growth of +1.1% in Q4 with
notable improvement in Leisure demand. RevPAR for the year was -0.3% in Tier 1
cities and -4.4% in Tier 2-4 cities. Looking ahead to 2026, we remain
encouraged by the breadth and strength of the region's economic growth, and
are confident in the attractive long-term secular demand drivers which also
continue to fuel record levels of development activity for IHG.
Trends by guest stay occasion led to global rooms revenue in 2025 for Business
bookings growing by +2% YOY (+1% room nights, +1% rate) on a comparable hotel
basis, Groups by +1% (flat room nights, +1% rate), whilst Leisure was flat
(with room nights and rate both broadly flat). This builds on growth in all
three stay occasions in 2024, and the recovery versus 2019 that was already
fully completed for all three stay occasions by the end of 2023.
Outlook: attractive long-term structural growth drivers for both demand and
supply
● The World Travel and Tourism Council (WTTC) expected the industry to
have added $12tn to global GDP in 2025, growing +7% on 2024 and surpassing
2019 by +14%.
● Industry revenue has outpaced global economic growth in 19 out of 26
years between 2000 and 2025, with a CAGR of +4.4% (versus +2.9% CAGR for GDP).
● Whilst in some countries geopolitical risk and the economic outlook
present shorter-term uncertainties, overall conditions for the global industry
remain positive for continued long-term growth, supported by stable employment
markets and robust levels of business activity and economic growth. A
continued key driver over the long term is the adoption of travel by emerging
market middle classes, a population segment forecast by Oxford Economics to
nearly double in size to over 670 million households by 2035, with China
accounting for almost half of the growth.
● Global hotel room nights consumed returned to 2019 levels by 2023
and grew further in 2024 and 2025, according to Oxford Economics, with a
forecast CAGR of +3.6% through to 2035. The US market is expected to increase
by a +2.5% CAGR from 2.3 billion to 2.9 billion room nights over the next
decade, and China to be faster at a +4.2% CAGR, with the rest of world
(excluding both the US and China) also forecast to grow at a CAGR of +3.8%.
● Global hotel room net new supply grew at a CAGR of +2.3% over the
decade to 2025, and was +1.1% in the US, according to STR. Their latest
forecasts for US industry net supply growth are +0.7% in 2026 and +0.9% in
2027, with growth rates increasing to over 1% in the following three years.
Industry net new supply growth is forecast to be stronger in many emerging
markets and high economic growth countries within our EMEAA region, and in
China.
● Over the long term, and in addition to the industry's RevPAR growth,
further new hotel supply will still be needed to satisfy the demands of
growing populations and rising middle classes, to drive business and commerce,
and to satisfy the inherent desire for people to travel, connect in person and
seek out new experiences.
● Global leading hotel brands are expected to continue their long-term
trend of taking market share. In periods when developers are adding less new
supply, RevPAR growth from existing room inventory is expected to be stronger
as are conversion opportunities, which IHG has proven highly successful at
capturing.
Summary of system size and pipeline progress
Openings and signings in 2025 reflect the strength of IHG's brand portfolio
and the overall enterprise platform that we provide to hotel owners, together
with the long-term attractiveness of the markets we operate in:
● Global system of 1,026k rooms (6,963 hotels) at 31 December 2025,
weighted 66% across midscale segments and 34% across upscale and luxury
● Gross system growth +6.6% YOY, with 65.1k rooms across a record 443
hotels opened in 2025; room openings increased +10% YOY, or +19% YOY excluding
additions from the acquisition of Ruby (3.0k rooms in 2025) and the NOVUM
conversions added to IHG's system (3.8k rooms in 2025 and 10.2k rooms in
2024); 19.2k rooms (137 hotels) opened in Q4
● Removal of 26.0k rooms (109 hotels) in 2025, of which 7,092 were
previously affiliated with The Venetian; removal rate of 1.9% in 2025,
adjusted to exclude the impact of The Venetian, which is a rate temporarily
above the historical and anticipated future average underlying rate of ~1.5%
● Net system growth of +4.7% (adjusting for The Venetian; growth of
+4.0% YOY on a reported basis)
● Signed 102.1k rooms (694 hotels) in 2025; signings increased +9% YOY
excluding the Ruby acquisition in 2025 (5.7k rooms) and the NOVUM Hospitality
agreement in 2024 (17.7k rooms); 28.3k rooms (200 hotels) signed in Q4
● Signings mix drives pipeline to a weighting of 51% across midscale
segments and 49% across upscale and luxury, which over the coming years will
continue to drive a more balanced system mix and fee stream
● Conversions saw further strong growth, and represented 52% of all
room openings in 2025; conversion signings of 306 hotels in 2025 (255 in 2024
excluding NOVUM, 374 in total), an increase in rooms of +10% excluding NOVUM
and represented 40% of all room signings in 2025; new-build signings for 358
hotels, an increase in rooms of +8%
● Global pipeline of 340k rooms (2,292 hotels), representing 33% of
current system size and growth of +4% YOY
● Around 50% of the global pipeline is under construction
System and pipeline summary of movements in 2025 and closing positions
(rooms):
System Pipeline
Openings Removals(a) Net Total YOY% YOY% Signings Total
Reported Adjusted(a)
Global 65,078 (26,026) 39,052 1,026,177 +4.0% +4.7% 102,054 339,526
Americas 18,776 (17,576) 1,200 529,194 +0.2% +1.6% 26,626 105,374
EMEAA 24,107 (2,979) 21,128 287,602 +7.9% +7.9% 43,409 116,866
Greater China 22,195 (5,471) 16,724 209,381 +8.7% +8.7% 32,019 117,286
a. 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 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.
The regional performance reviews provide further detail of the system and
pipeline by region, and further analysis by brand and by ownership type.
CHIEF EXECUTIVE'S REVIEW
IHG's strategic priorities
Our purpose of True Hospitality for Good is at the heart of our brands and
culture, and our focus is on what is central to our customers: being the hotel
company of choice for guests and owners. Our strategic priorities are to
deliver:
● Relentless Focus on Growth: a targeted approach to expanding our
brands in high-value and growth markets
● Brands Guests and Owners Love: our explicit intention to deliver for
both groups, every time
● Leading Commercial Engine: investment in the technology and tools
that drive commercial success and make the biggest difference to guests,
owners and hotel teams
● Care for our People, Communities and Planet: a focus aligned to our
2030 Journey to Tomorrow plan
These strategic pillars allow us to build on prior investments in our brand
portfolio, IHG One Rewards and wider enterprise, and will drive IHG towards
realising its full potential in a sustainable and responsible way. Over the
long term, with disciplined execution, our strategy creates value for all our
stakeholders by delivering growth in profits and cash flows, which can be
reinvested in our business and returned to shareholders, reflecting how IHG
delivers on our growth algorithm and investment case.
In 2025, we made significant further progress on these priorities, including:
1. Growing our brands
2. Expanding key geographic markets
3. Developing our leading technology and enterprise platform
4. Driving ancillary fee streams
5. Delivering increased dividends and returning surplus capital to our
shareholders
Each of these are summarised below. Together, these have driven our progress
in 2025 on our growth algorithm, which we set out in 2024 as central to
delivering value creation over the medium to long term.
Delivering value creation over the medium to long term
IHG's growth algorithm:
Building on our strong track record of driving growth and shareholder returns,
in 2024 IHG set out a clear framework for value creation over the medium to
long term:
● high-single digit percentage growth in fee revenue annually on
average over the medium to long term, driven largely by the combination of
RevPAR growth and net system growth;
● 100-150bps expansion in fee margin annually on average over the
medium to long term, driven largely by operational leverage;
● ~100% conversion of adjusted earnings into adjusted free cash flow,
on average over the medium to long term;
● sustainably growing the ordinary dividend;
● returning additional capital to shareholders, such as through
regular share buyback programmes, further enhancing EPS growth; and
● the opportunity for compound growth in adjusted EPS of +12-15%
annually on average over the medium to long term, driven by the combination of
the above and including the assumption of ongoing share buybacks.
IHG's total fee revenue growth is largely driven by the combination of RevPAR
and net system growth. Positive operational leverage is expected as fee
revenues are anticipated to grow faster than the increase in our cost base.
Additional drivers of this include structural shifts over time such as a
growing proportion of franchising and increasing scale efficiencies in EMEAA
and Greater China.
In addition to fee margin progress from operational leverage, IHG actively
develops further opportunities to drive fee margin over the longer term. These
include cost base efficiency and effectiveness initiatives, and the expansion
of ancillary fee streams including growth from loyalty point sales, co-brand
credit cards and branded residences.
Summary of progress on our growth algorithm in 2025:
IHG made strong progress on all components of our growth algorithm:
● +7% growth in fee revenue(1);
● +360bps expansion in fee margin(1);
● >100% conversion of adjusted earnings(1) into adjusted free cash
flow(1);
● +10% growth in the ordinary dividend, a growth rate consistent with
that delivered for each of the last three years;
● ~$900m of additional capital returned to shareholders through the
2025 share buyback programme; and
● +16% growth in adjusted EPS(1) through the combination of the above.
Within the +360bps fee margin(1) expansion, around +230bps was driven by
operational leverage as the growth in fee revenue(1) was achieved on a fee
business cost base that was lower year-on-year, the latter including benefits
from our global efficiency programme and our ongoing actions to drive cost
productivity. The further +130bps was due to incremental fees from the US
co-brand credit card agreements and from the sale of certain loyalty points
(together with certain other ancillary revenues). The changes in arrangements
for these two fee streams achieved the anticipated incremental ~$40m and ~$25m
step-ups within IHG's results from reportable segments for 2025.
In 2025, an exceptional cost of $12m was charged to the fee business in
relation to a global efficiency programme, in line with previously stated
expectations. These costs targeted an initial cash-on-cash payback within 12
months, will drive sustainable savings beyond these implementation costs, and
come on top of other savings already being delivered and which will continue
to build further. The programme was designed to look at all areas of the
business, with the goal of achieving incremental cost base effectiveness and
scalability, which supports future margin progression in addition to our
continuous action to drive ongoing efficiency. In 2024, IHG achieved fee
revenue(1) growth of +6% whilst fee business cost growth was contained to an
increase of just +1%. In 2025, fee revenue(1) grew by a further +7%, but our
cost base reduced by -3%, significantly assisted by the specific achievements
of the efficiency programme in this particular year. Looking back historically
over the longer term, IHG has contained annual fee business costs to a low
single digit percentage average annual increase, reflecting a strong track
record of prior delivery of efficiencies which similarly supported prior
margin progress, and we are targeting to repeat this going forward over the
medium to long term.
The combination of the fee revenue growth and fee margin(1) expansion drove a
+13% increase in operating profit from reportable segments to $1,265m for
2025. Adjusted interest expense(1) of $200m rose +21% on the prior year,
driven largely by the effect of returning capital to shareholders; our
expected range for interest for 2026 is $230-250m. Our adjusted tax(1) rate in
2025 was 27%, the same as the prior year, and a rate around 27% continues to
be anticipated for the near term based on current legislation. Our buyback
programmes led to a further -4.2% reduction in the basic weighted average
number of ordinary shares, which additionally enhanced earnings per share. The
combined effect of our growth algorithm was therefore adjusted EPS increasing
by +16%.
The Board is confident of continued progress, consistent with our growth
algorithm and framework set out in 2024, that will deliver further value
creation over the medium to long term.
1. Definitions for non-GAAP measures can be found in the 'Key
performance measures and non-GAAP measures' section, along with
reconciliations of these measures to the most directly comparable line items
within the Financial Statements.
Strategic and operational highlights in 2025
1. Growing our brands
As part of our relentless focus on growth, we look to grow the reach of our
overall brand portfolio as well as each of our individual brands, supported by
our masterbrand, loyalty programme and wider enterprise. Over the last decade,
we have expanded from 10 to 20 brands, with our 10 newer brands now accounting
for 10% of total current system size and 22% of the pipeline. Successful brand
growth and awareness is inherently linked to strong commercial performance and
achieving attractive returns on investment for our hotel owners, all resulting
in IHG driving sustainable growth in our system size and fees. Key
developments and highlights in 2025 included:
● New premium collection brand, Noted Collection. To capitalise on
guest and owner demand in the large and fast-growing premium segment, Noted
Collection, IHG's 21st brand, will target an Upscale to Upper Upscale price
point and will build on IHG's well-established successes with other collection
and conversion brands - Vignette, voco and Garner. The Noted Collection 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. Officially launched in February 2026,
IHG is already in initial discussions with multiple owners, including several
with portfolios of hotels, for potential addition into our system as part of
the Noted Collection.
● Accelerating quick-to-market conversions. Our midscale conversion
brand, Garner, has reached 166 open and pipeline hotels across 12 countries in
just over two years since launch, which makes it IHG's fastest-ever scaling of
a brand globally. The brand is ready for launch into the Greater China region.
Our Luxury & Lifestyle brand Vignette Collection, launched in 2021, is
tracking ahead of its goal to reach 100 hotels in a decade, with 31 open and
45 pipeline hotels. Our versatile premium conversion brand voco has already
achieved 124 open hotels across more than 30 countries since launch in 2018,
and has a further 108 hotels in its pipeline, as signings continue to
accelerate. These three conversion-focused brands alone represented around
one-third of 306 conversion signings in 2025, with the remaining two-thirds
across our other brands. Common to all conversions, owners are drawn to the
strength of IHG's enterprise, including attracting IHG One Rewards members to
their hotels, and enhancing revenue management, new sales account activation
and marketing and distribution effectiveness.
● Acquisition of premium urban lifestyle brand, Ruby. Acquired in
February 2025, Ruby brings an exciting, distinct and high-quality offer for
both guests and owners in popular city destinations. The urban micro space is
a franchise-friendly model with attractive owner economics, and we see
excellent opportunities to expand Ruby's strong European base and also grow in
the Americas and Asia. At the time of acquisition, Ruby had 20 open hotels.
The first 17 of these have been added onto IHG's system in the initial phase
of integration, with the next stage of fully operating on IHG's Guest
Reservation System now underway. There were 10 pipeline hotels at acquisition
and a further six were signed by the end of 2025. The Ruby brand was made
available for US development by the end of the year, and the first signing
achieved in recent weeks in Chicago, with further internationalisation planned
for 2026.
● Powering ahead with our established brands. InterContinental, Hotel
Indigo, HUALUXE, Crowne Plaza, EVEN Hotels, Holiday Inn, Holiday Inn Express,
Staybridge Suites and Candlewood Suites each have pipelines representing at
least 20% of current system size. Across these brands, 452 hotels were signed
in 2025, ahead of last year (excluding the NOVUM conversions in the comparable
period). We continuously invest in new formats to deliver outperformance in
key guest metrics and further increase owner returns. Recent developments for
our world-leading Holiday Inn Express brand, with almost 3,300 open hotels and
655 in the pipeline, include: the new bean-to-cup upgraded coffee service
rolling out to 85% of all hotels in the US; and its 5th generation room and
lobby design opening in Greater China and Europe to boost both investment
returns and guest satisfaction. Meanwhile, the latest Holiday Inn design has
launched in more hotels in the US and seen good performance uplifts, and TIME
magazine recognised it as a World's Best Brands in 2025 for each of the US,
Mexico, UK and Germany markets.
● Luxury & Lifestyle expansion. Our six brands in this higher
fee-per-key category represent 14% of current system size (590 properties,
137k rooms) and 22% of our pipeline (400 properties, 73k rooms), with the
pipeline representing 68% future growth in the number of properties and 53% in
rooms. We surpassed 2024's strong signings performance with a further 97
Luxury & Lifestyle hotels signed in 2025. In Upper Luxury, Six Senses has
66 properties and Regent 23 properties across the combination of their open
hotels and pipeline. With 15 openings and 23 signings in 2025,
InterContinental now has 242 open and 104 pipeline hotels, while Kimpton has
85 and 67, respectively. Hotel Indigo has now exceeded 320 open and pipeline
hotels in almost 50 countries, reflecting its accelerated pace of development.
● Building masterbrand trust and awareness. We made further
significant gains in 2025 with the IHG Hotels & Resorts masterbrand,
through increasing visibility across the guest journey, breakthrough
marketing, and a sharper focus on quality and excellence at scale. This
included continued partnering with organisations such as the Six Nations Rugby
and the US Open Tennis Championships, the latter helping achieve an all-time
high of IHG masterbrand awareness amongst travellers in the US.
2. Expanding key geographic markets
IHG brands are already in over 100 countries. There are many opportunities to
develop further in existing markets by introducing IHG brands not yet present,
as well as entering new countries with no current IHG presence at all.
Existing markets may also be high growth markets, particularly where they are
developing economies with low branded hotel penetration. Others may already be
high value and developed markets, but where our evolved brand portfolio can
target an increased market share. Key developments and highlights in 2025
included:
● Reaching new markets. In 2025, there were 32 opening debuts to new
countries for individual IHG brands, including three countries with no prior
IHG presence. The rapid rollout of Garner saw the brand reach Austria, Italy,
The Netherlands, Turkey, Thailand and Mexico. The attraction of existing
hotels converting to join IHG's system also led to voco entering seven more
countries in the year. We added Candlewood and Kimpton to our extensive
portfolio in Germany, there were debuts in Peru for each of InterContinental,
Vignette and Hotel Indigo, and a further important development was the first
opening in Greater China for Atwell Suites.
● Growing in each of our three largest markets. Our US estate reached
4,108 hotels, with net system growth of +1.5% (adjusting for The Venetian),
and the US pipeline represents 20% of current system size. In Greater China,
in early 2025 we celebrated IHG's 50th anniversary and our 800th opening, and
we reached 882 open hotels by the end of the year with net system growth of
+8.7%; it was also another record year of both hotel openings and signings,
the latter taking the pipeline to 582 hotels, which represents +56% future
rooms growth. After the US and China, our next largest country market is the
UK with 370 hotels, with net system growth of +3.9%. UK openings included five
additional voco properties, four Garner conversions, three Hotel Indigo
properties and the three additions from the Ruby acquisition. Signings for 19
properties in the UK included 10 further Garner conversions.
● Expanding in other high value, developed markets. Germany is one of
Europe's largest hotel markets, with strong domestic consumption and inbound
travel, and is also one of the largest sources of international outbound
travel globally. Largely in this market, the prior year's agreement with NOVUM
Hospitality is adding 108 open hotels (15.3k rooms) to IHG's system and there
were a further 11 pipeline hotels (2.4k rooms) at the time. A total of 96
hotels (14.0k rooms) have been converted to IHG's brands to date, 58 (10.2k
rooms) in 2024, followed by 38 hotels (3.8k rooms) in 2025. A further 15
signings have also been secured beyond the 119 in the initial agreement. Our
open and pipeline hotels in Germany now stands at 242, more than double the
110 at the start of 2024. Across the whole of our Europe sub-region, we are
approaching 1,000 open hotels, with over 250 more in the pipeline. Japan,
another example of a high value developed market, now has 59 open hotels, with
8 openings and 18 signings achieved in 2025.
● Doubling IHG's presence in high growth, emerging markets. In India,
35 signings in 2025 marked a record year, including first signings for Garner
and the opening of the country's first Vignette Collection. India has 51 open
and 89 pipeline hotels, with accelerating momentum supporting IHG's ambition
to reach more than 400 open and pipeline hotels within the next five years.
Saudi Arabia has 48 open and 63 pipeline hotels, with 21 signed in 2025. The
latter signings included two portfolios totalling six hotels across five
different IHG brands, as well as the launch of EVEN Hotels in EMEAA. Excluding
our major market of Greater China and also the developed markets of Australia,
New Zealand and Japan, across the rest of Asia Pacific there are highly
attractive emerging market conditions, where we have 163 open hotels currently
and already have a pipeline of a further 96 properties.
3. Developing our leading technology and enterprise platform
By investing in our enterprise, 83% of room revenue at hotels in our system is
booked through IHG-managed channels and sources. This is a key indicator of
value-add, the success of our commercial engine across technology platforms,
and of our sales and distribution channels. Providing owners higher-value
revenue at lower cost of acquisition is of paramount importance to our owner
proposition. Key developments and highlights in 2025 included:
● Boosting loyalty to drive value for guests and owners. Expanding to
over 160 million IHG One Rewards members globally, enrolments were up +25% YOY
and loyalty penetration increased to 66% of all room nights booked, growing by
over 3%pts in each region and is highest in the US and Americas overall at
73%. Loyalty members typically spend ~20% more in hotels than non-members and
are around 10x more likely to book direct. The number of Reward Night
redemptions increased by +9% YOY, and there was +12% growth in the number of
Milestone Rewards selected in 2025, further reflecting that loyalty members
are actively engaging and receiving value from the programme. Additional
loyalty partnerships were established in the year, such as between IHG's
long-standing SME travel programme, IHG Business Edge, and Delta Air Lines'
Business Traveler platform, and similarly with Qatar Airways' Beyond Business
corporate rewards programme. Other examples of new partnerships include with
the King Pro League (KPL) in Greater China to serve the rapidly growing
eSports industry, with loyalty members able to redeem points for KPL match
tickets and exclusive fan packages. Amongst many accolades and awards during
the year, IHG One Rewards received Best Hotel Rewards Program in the World for
the 21st consecutive year at the Global Traveler 2025 awards.
● Strong mobile and digital channels growth. IHG's direct digital
booking channels now deliver over 26% of total room revenue, supporting a
further 2%pts YOY increase in overall enterprise contribution. In 2025, there
were another 9 million app downloads and over 60% of active elite loyalty
members used the app in the last 12 months. Further enhancements include
guests' ability to book different room types under a single reservation, store
multiple payment cards, and take advantage of new redemption rewards, while
Digital Check-Out expanded to 3,500+ hotels. Adapting to local booking
preferences, we also partnered with Rakuten and launched the LINE mini app in
Japan.
● Driving further advantages through our Guest Reservation System
(GRS). Maximising guest choice and value with IHG's GRS is central to our
owners. The up-sell of unique room attributes such as room size and views is
available across our global estate, and approximately half of customers saw an
up-sell offer at some point in their booking journey in 2025, up from 30% in
2024. When selected, these offers are achieving average nightly room revenue
increases approaching $50 for Luxury & Lifestyle and $20 across our
Essentials and Suites brands. This is driving more bookings into premium
rooms, and more revenue to hotel owners.
● Full roll-out of new Revenue Management System (RMS). Another
significant innovation unlocked by the GRS is our new Revenue Management
System. A further 3,400+ hotels adopted the system in 2025, completing the
roll-out across our global estate of 6,800 eligible hotels. This new RMS
offers best-in-class cloud-based platforms and incorporates data science, AI
machine learning and forecasting tools to deliver advanced insights and
recommendations to owners. User feedback is very positive, and indicative
levels of revenue uplift and market share gains have been encouraging.
● Delivering best-in-class cloud-based Property Management Systems
(PMS). We are creating even greater value for owners by providing hotels with
next‑generation PMS through cloud‑based, above-property solutions that
apply the latest technology and allow the deployment of fast, efficient
enhancements. Benefits include quicker colleague onboarding and training, and
streamlined front desk processes such as via mobile and remote access.
HotelKey was our first approved PMS solution in the Americas and EMEAA, and an
equivalent platform from Shiji has been deployed to hotels in Greater China.
In addition, we recently established a new agreement to provide Oracle OPERA
Cloud as a further PMS solution for IHG hotel owners. The accelerated roll-out
of these cloud-based PMS solutions reached 2,000 hotels in 2025, and we expect
to double this to 4,000 by the end of 2026.
● Launching new digital content and customer engagement platforms.
Following development in 2025, phased rollout of a new content management
platform begins in 2026 across our app and all IHG booking websites, making it
easier and faster for hotel owners to create and update compelling content to
showcase their properties. This includes machine translation into multiple
languages and optimising AI search of structured content, new media types such
as video, 360 images, floor plans and virtual tours, and improved information
on the properties and nearby attractions. To help deepen loyalty and drive
guest satisfaction, a new Customer Relationship Management platform is also in
development, together with an extensive refresh across our loyalty platform
technology, which will allow for better guest engagement and more tailored,
high-touch personalised experiences during booking and on-property.
● Driving advantages from AI across IHG's tech stack and entire
enterprise. IHG has an interconnected technology ecosystem, underpinned by AI,
which delivers competitive advantage to how we promote hotels, optimise
operations and engage with guests. This ecosystem brings together for hotel
owners industry-leading technology through our GRS, RMS and PMS. All have been
developed by best-in-class partners to fulfil specific needs and seamlessly
integrate into a cloud-based SaaS platform environment that is already
embracing the power of AI. These in turn enable our new content and customer
engagement platforms, which further leverage AI across our distribution
channels and our marketing to improve customer acquisition and retention. AI
is also already supporting the lowering of costs and increasing the
effectiveness of service delivery for our hotel owners in other areas - for
example, our digital chatbot having 5.1 million conversations with guests in
2025, up +40%, to help solve their queries which save hotel teams time and
improve customer satisfaction. Within IHG's own operations, we have launched
numerous AI-powered automations as part of our ongoing efficiency programmes
to transform our cost base and boost productivity. IHG has also invested in
accelerating our AI-driven innovation through senior leadership hires to lead
on our global AI strategy, and technical and data architecture.
● Delivering on the scale and skill advantages of the System Fund. The
System Fund is managed for the benefit of hotels in the IHG system, and not to
a surplus or deficit for IHG over the longer term. System Fund revenues in
2025 totalled $1.7bn, +25% more than 2019. Following a review in 2024 of IHG's
owner charges, IHG lowered from the start of that year its standard loyalty
assessment fee that owners pay into the Fund and increased certain Reward
Night reimbursements owners receive from the Fund when points are redeemed for
stays, which additionally improves owner economics. From the Marketing &
Reservation fee that owners pay into the Fund, expenditure by the Fund on
marketing in 2025 totalled $542m, +18% higher than 2019. Coming into 2025, the
System Fund had returned to a cumulative neutral position, reflecting the
strength of funding arrangements. As IHG's RevPAR and system size continues to
grow in the future, so too will System Fund capacity, which in turn will drive
further scale advantages and efficiencies, enabling IHG's ongoing investment
in leading technology and the wider enterprise.
4. Driving ancillary fee streams
IHG actively looks to grow ancillary fee streams from other sources. These are
separate and in addition to fee streams paid by hotel owners for use of IHG's
brands and for the services provided to them as part of our enterprise
platform. Ancillary streams typically further enhance our overall fee margin,
providing step changes in 2024 and 2025 and thereafter contributing to our
target of 100-150bps annual improvement in fee margin on average over the
medium to long term.
● Sale of loyalty points to consumers. As previously described, in
2024 approximately $25m of incremental revenue and operating profit from
reportable segments was delivered from changes applied to arrangements for the
sale of certain loyalty points and other ancillary revenues, with the
concluding step-change in arrangements delivering the expected doubling of
this in 2025. Further growth is expected in future years, driven by the number
of points sold continuing to increase, and the ongoing expansion and success
of the IHG One Rewards programme.
● Co-brand card agreements. The attraction of co-branded IHG One
Rewards cards is intrinsically linked to the overall appeal and growth of the
loyalty programme, and they drive further membership and loyalty to that
programme, deepen guest relationships and deliver more business to our hotels.
Co-brand card holders stay even more frequently and spend more in IHG hotels.
In November 2024, IHG entered into new agreements with our US co-brand credit
card issuing and financial services partners that were effective immediately
from that date and have an initial term running through to 2036. Under prior
arrangements, fees recognised within IHG's operating profit from reportable
segments in 2023 were $39m. These have approximately doubled in 2025, as was
anticipated from the new arrangements, and are still expected to more than
triple from the 2023 level by 2028, with continued growth anticipated in the
years beyond. The balance of fees that is recognised within System Fund
revenue is also expected to grow meaningfully over the term of the new
agreements. The number of US co-brand card members saw high single-digit
percentage growth in 2025, alongside a comparable uplift in total card spend.
We also expanded the IHG and Chase partnership with new IHG One Rewards status
for Chase Sapphire Reserve and Chase Sapphire Reserve for Business cards.
Separately, we have recently signed a new UK co-branded IHG One Rewards debit
card agreement with Revolut, alongside Visa, with card products scheduled to
be launched later this year. Further co-brand priority growth markets are
targeted for future years.
● Branded residential properties. A further example of driving
ancillary fees through the strength of IHG's brands is their ability to
generate increased sales of residential property, typically alongside a hotel
development with shared services and facilities. This industry segment has
almost tripled in number of branded residential developments worldwide over
the last decade, and based solely on the schemes already signed the segment is
forecast to approximately double in size between 2025 and 2032, according to
Savills. Hotel developers, particularly in the Luxury category, are therefore
increasingly looking at mixed use developments that also involve a residential
component, and our brands are also seeing growing interest for use in
residential-only developments. IHG has 30+ branded residential projects open
or selling properties across 15+ countries, and more in the pipeline. Fees
earned by IHG from branded residences increased in 2025, benefiting from
strong sales at Six Senses Dubai Marina, which have added to the success of
the previously fully sold development at Six Senses The Palm, Dubai, and
growth in this latest year also from the near-complete sale of residences at
Six Senses, London. Signings in 2025 for future branded residences
developments included Six Senses Myoko, Japan, and two in Thailand at the
InterContinental Phuket Resort and the InterContinental Residences Bangkok
Asoke. Further fee growth is expected to be substantial in 2027 and beyond, as
more of the current residential units under development are sold, and as we
continue to leverage the global reach and potential of IHG's Luxury &
Lifestyle brands.
5. Delivering increased dividends and return of surplus capital to our
shareholders
The Board expects IHG's business model to continue its strong track record of
generating substantial capacity to support our investment plans that drive
growth, fund a sustainably growing ordinary dividend, and routinely return
surplus capital to shareholders.
● Consistent capital allocation approach. IHG's asset-light business
model is highly cash-generative through the cycle and enables us to invest in
our brands and strengthen our enterprise platform. We have a disciplined
approach to capital allocation which ensures that the business is
appropriately invested in, whilst looking to maintain an efficient and
conservative balance sheet. IHG's perspectives on the uses of cash generated
by the business remain unchanged: ensuring we invest in the business to
optimise growth that will drive long-term shareholder value creation, funding
a sustainably growing dividend, and then returning surplus capital to
shareholders, whilst targeting our leverage ratio within a range of 2.5-3.0x
net debt:adjusted EBITDA to maintain an investment grade credit rating.
● Sustainably growing the ordinary dividend: +10% for 2025. IHG
typically pays dividends weighted approximately one-third to the interim and
two-thirds to the final payment. The total dividend for 2024 was 167.6¢, an
increase of +10% on the prior year. The interim dividend for 2025 was
increased +10% to 58.6¢. With a proposed final dividend increase of +10% to
125.9¢, the total dividend for 2025 of 184.5¢ will have increased by +10%
for another year, an annual growth rate consistently delivered for
shareholders since 2022. The ex-dividend date for the final dividend is
Thursday 9 April 2026 (Friday 10 April 2026 for ADRs) and the record date is
Friday 10 April 2026. Subject to shareholder approval at the AGM on Thursday
7 May 2026, the final dividend will be paid on Thursday 14 May 2026.
● Returning surplus capital: $900m share buyback programme completed
in 2025. This programme repurchased 7.6 million shares for $892m, reducing the
voting rights in the Company by a further 4.8% in 2025. This followed the
$800m programme in 2024, $750m programme in 2023 and the $500m programme
announced in 2022, which already reduced the total number of voting rights by
4.6%, 6.1% and 5.0%, respectively. Together with ordinary dividend payments in
2025 of $270m, there were $1,162m of shareholder returns, equivalent to 5.9%
of IHG's $19.8bn (£15.8bn) market capitalisation at the start of 2025.
● New $950m buyback for 2026. As announced on 17 February 2026
alongside our results for the 2025 financial year, a new share buyback
programme will commence immediately to return a further $950m over the course
of 2026. Together with the anticipated sustainable growth in ordinary dividend
payments, there would be another $1.2bn+ returned to shareholders in respect
of 2026, equivalent to 5.8% of IHG's $21.3bn (£15.9bn) market capitalisation
at the start of 2026. Cumulatively over the five years from 2022 to 2026, this
will mean IHG has returned more than $5bn to our shareholders.
● Leverage now within 2.5-3.0x target range. IHG's net debt:adjusted
EBITDA ratio was 2.5x at 31 December 2025 increasing from 2.3x at 31 December
2024. On a prospective basis, given analyst consensus expectations for growth
in EBITDA and cash generation in 2026, together with the new $950m share
buyback programme, leverage at the end of 2026 would be expected to remain
within our target range of 2.5-3.0x.
Care for our People, Communities and Planet
This is a key strategic pillar for IHG, supported by our Journey to Tomorrow
2030 responsible business plan. Progress against this plan is reported on in
our Annual Reports and supplemental ESG data books. Notable developments in
2025 include:
● Developing and engaging our people. IHG maintained its place in the
top quartile of most engaged employers in 2025 with a score of 87%, following
our latest annual survey drawing upon the views of 130,000+ participating
colleagues. Several awards in the year underlined our commitment to
strengthening workplace culture, including ongoing recognition in the Fortune
100 Best Companies To Work For in the US, and attaining Great Place to Work
status in 21 markets globally. As part of a continued focus on colleagues'
development, we strengthened our hotel talent pipeline and leadership
capabilities through extensions to key programmes such as the RISE mentoring
programme and the Journey To programmes for Supervisors, Managers and hotel
General Managers. At a corporate level, changes were made to sharpen goal
setting, feedback and our approach to performance management to better reward
high performers.
● Promoting respect for and advancing human rights. We continued to
drive compliance with our Responsible Labour Requirements (RLRs) in 2025 with
the launch of new, survivor-informed mandated training on preventing human
trafficking, developed in partnership with a leading anti-trafficking NGO and
industry peers. Digital self-assessments also rolled out globally, enhancing
transparency, monitoring and the quality of corrective actions. Over 92% of
hotels already completed this new self-assessment.
● Improving the lives of 30 million people through skills training,
disaster response and food security. Over 80,000 people were trained and
upskilled through our IHG Academy offerings in 2025. This included the launch
of Virtual Discover, delivering interactive sessions to engage participants
through schools, NGOs and charities around the world. We also worked with
organisations to help provide job opportunities across our markets, including
Springboard in the UK, China Youth Development Foundation in Greater China,
the Tourism and Hospitality Skill Council in India, and the Al Noor Training
Centre for People of Determination in Dubai. We responded to 22 natural
disasters in the year, working closely with charity partners to support relief
and recovery efforts. During the first 18 months of our partnership with
global NGO Action Against Hunger to combat food insecurity and hunger, we
helped support 5.4 million people as part of its global nutrition programmes
in over 50 countries. Across other collective action to give back to our
communities, 40,000 colleagues supported the work of more than 700 charities.
● Our ongoing commitment to energy reduction and decarbonisation. IHG
achieved a -10.2% reduction in energy per available room and an -11.0%
reduction in carbon emissions per available room in 2025, compared with 2019.
However, the continued lack of a clean energy infrastructure in our markets,
alongside the opening of more IHG hotels around the world, means that total
carbon emissions are up +7.7% since 2019. We remain dedicated to the actions
we are taking to assist hotel owners in reducing carbon emissions and in 2025
we continued to implement brand standards to drive energy efficiency as well
as reduce waste, and expanded our Low Carbon Pioneers Programme, which now has
hotels spanning Asia, Europe and South America, including our first net-zero
carbon hotel in the UK. We've also continued to expand our Meeting for Good
programme, which supports event planners to deliver a more sustainable event
experience. In 2025, more than 650 hotels participated, and the programme was
named a Gold Medal winner in Northstar's Stella Awards for Best Sustainability
Initiative. In 2026, we will refresh elements of our Journey to Tomorrow
responsible business plan to strengthen our ability to navigate diverse and
complex energy infrastructures and regulatory environments across our global
markets.
Summary of financial performance
INCOME STATEMENT SUMMARY
12 months ended 31 December
2025 2024 %
Re-presented(a)
$m $m change
Revenue(b)
Americas 1,129 1,141 (1.1 )
EMEAA 811 748 8.4
Greater China 165 161 2.5
Central 363 262 38.5
_____ _____ _____
Revenue from reportable segments(c) 2,468 2,312 6.7
System Fund and reimbursable revenues 2,721 2,611 4.2
_____ _____ _____
Total revenue 5,189 4,923 5.4
Operating profit(b)
Americas 836 828 1.0
EMEAA 303 270 12.2
Greater China 99 98 1.0
Central 27 (72) NM(e)
_____ _____ _____
Operating profit from reportable segments(c) 1,265 1,124 12.5
Analysed as:
Fee business 1,231 1,085 13.5
Owned & leased 43 45 (4.4 )
Insurance activities (9) (6) 50.0
System Fund and reimbursable result (46) (83) (44.6 )
_____ _____ _____
Operating profit before exceptional items 1,219 1,041 17.1
Operating exceptional items (21) - NM(e)
_____ _____ _____
Operating profit 1,198 1,041 15.1
Net financial expenses (153) (115) 33.0
Analysed as:
Adjusted interest expense(c) (200) (165) 21.2
System Fund interest 47 50 (6.0)
Foreign exchange gains/(losses) 37 (25) NM(e)
Remeasurement of contingent purchase consideration (8) (4) 100.0
_____ _____ _____
Profit before tax 1,074 897 19.7
Tax (315) (269) 17.1
Analysed as:
Adjusted tax(c) (290) (262) 10.7
Tax attributable to System Fund (9) (4) 125.0
Tax on foreign exchange gains/losses - (3) NM(e)
Tax exceptional items (16) - NM(e)
_____ _____ _____
Profit for the year 759 628 20.9
Adjusted earnings(d) 774 697 11.0
Basic weighted average number of ordinary shares (millions) 154.4 161.2 (4.2 )
_____ _____ _____
Earnings per ordinary share
Basic 490.9¢ 389.6¢ 26.0
Adjusted(c) 501.3¢ 432.4¢ 15.9
Dividend per share 184.5¢ 167.6¢ 10.1
Average US dollar to sterling exchange rate $1: £0.76 $1: £0.78 (2.6)
a. Re-presented to present foreign exchange gains/(losses) on
a separate line which was previously presented within 'Net financial
expenses'.
b. Americas and EMEAA include revenue and operating profit
before exceptional items from both fee business and owned & leased hotels.
Greater China includes revenue and operating profit before exceptional items
from fee business.
c. Definitions for non-GAAP measures can be found in the 'Key
performance measures and non-GAAP measures' section, along with
reconciliations of these measures to the most directly comparable line items
within the Financial Statements.
d. Adjusted earnings as used within adjusted earnings per
share, a non-GAAP measure. Excludes $1m profit attributable to non-controlling
interest.
e. Percentage change considered not meaningful, such as where
a positive balance in the latest period is comparable to a negative or zero
balance in the prior period.
Revenue
Global RevPAR increased year-on-year by 3.3% in the first quarter, 0.3% in the
second quarter, 0.1% in the third quarter, 1.6% in the fourth quarter and 1.5%
for the full year, with performance varying across our globally diverse
portfolio of hotels. Our other key driver of revenue, net system size,
increased by 4.0% year-on-year to 1,026,177 rooms. After adjusting for the
impact of removing 7,092 rooms previously affiliated with The Venetian Resort
Las Vegas, net system size increased by 4.7%.
Total revenue increased by $266m (5.4%) to $5,189m, including a $110m increase
in System Fund and reimbursable revenue. Revenue from reportable segments(a)
increased by $156m (6.7%) to $2,468m, driven by a combination of system and
RevPAR growth, together with incremental fees from previous changes in the
arrangements related to the US co-brand credit card arrangements and from the
sale of certain loyalty points (together with certain other ancillary
revenues). These revenue streams achieved the incremental ~$40m and ~$25m
step-changes within IHG's results from reportable segments(a) in 2025, along
with additional underlying growth. Underlying revenue(a) increased by $133m
(5.7%) to $2,454m, with underlying fee revenue(a) increasing by $110m (6.2%)
to $1,890m. Owned & leased revenue increased by $29m (5.6%) to $544m.
Operating profit and margin
Operating profit increased by $157m from $1,041m to $1,198m, including $21m
operating exceptional costs in relation to the global efficiency programme and
to commercial litigation and disputes, compared to operating exceptional items
of $nil recorded in the prior year. The reported System Fund and reimbursable
result improved by $37m in the year, as the loss reduced from $83m in 2024 to
$46m in 2025.
Operating profit from reportable segments(a) increased by $141m (12.5%) to
$1,265m. Fee business operating profit increased by $146m (13.5%) to $1,231m,
due to RevPAR and system growth, including a $12m increase in incentive
management fees to $190m, combined with incremental ancillary fee revenue.
Owned & leased operating profit declined from $45m to $43m. Underlying
operating profit(a) increased by $135m (12.0%) to $1,264m.
Fee margin(a) increased by 3.6%pts to 64.8%, with around 2.3%pts driven by
operational leverage and cost efficiencies from the global efficiency
programme, and a further ~1.3%pts due to incremental fees from the US co-brand
credit card agreements and from the sale of certain loyalty points (together
with certain other ancillary revenues).
The impact of the movement in average USD exchange rates for 2024 compared to
2025 netted to a $nil impact to operating profit from reportable segments(a)
when calculated as restating 2024 figures at 2025 exchange rates, and
benefitted operating profit from reportable segments(a) by $1m when applying
2024 rates to 2025 figures.
If the average exchange rate during January 2026 had existed throughout 2025,
the 2025 operating profit from reportable segments(a) would have been $6m
higher.
System Fund and reimbursable result
The Group operates a System Fund to collect and administer assessments from
hotel owners for specified purposes of use including marketing, reservations,
certain hotel services and the Group's loyalty programme, IHG One Rewards. The
System Fund also benefits from certain proceeds from the sale of loyalty
points under third-party co-branding arrangements and the sale of points
directly to members and other third parties. The Fund is not managed to
generate a surplus or deficit for IHG over the longer term, but is managed for
the benefit of hotels in the IHG system with the objective of driving revenues
for the hotels in the system.
The growth in the IHG One Rewards programme means that, although assessments
are received from hotels upfront when a member earns points, more revenue is
deferred each year than is recognised in the System Fund. This can lead to
accounting losses in the System Fund each year as the deferred revenue balance
grows which do not necessarily reflect the Fund's position and the Group's
capacity to invest.
Reimbursable revenues represent reimbursements of expenses incurred on behalf
of managed and franchised properties and relate, predominantly, to payroll
costs at managed properties where IHG is the employer. As IHG records
reimbursable expenses based upon costs incurred with no added mark up, this
revenue and related expenses have no impact on either operating profit or net
profit for the year.
In the year to 31 December 2025, System Fund and reimbursable revenues
increased $110m (4.2%) to $2,721m. This was driven by the growth in System
Fund revenue driven by the continued increase in net system size compounded by
year-on-year RevPAR growth.
The reported System Fund and reimbursable result improved from an $83m loss to
a $46m loss, primarily due to the System Fund revenue growth mentioned above
and the impact of the global efficiency programme, partially offset by
increased investments in marketing and loyalty.
a. Definitions for non-GAAP measures can be found in the 'Key
performance measures and non-GAAP measures' section, along with
reconciliations of these measures to the most directly comparable line items
within the Financial Statements.
Operating exceptional items
Operating exceptional items for the year to 31 December 2025 were $21m (2024:
$nil), comprising costs of $12m relating to the global efficiency programme
and $9m relating to litigation and commercial disputes. Further information on
operating exceptional items can be found in note 5 to the Financial
Statements.
Net financial expenses
Net financial expenses increased to $153m from $115m. Net financial expenses
include total interest costs on public bonds, which are fixed rate debt, of
$153m (2024: $123m) and interest expense on lease liabilities of $30m (2024:
$30m). In 2025, foreign exchange gains/(losses) have been presented on a
separate line of the Group income statement. The 2024 amount was previously
presented within net financial expenses.
Adjusted interest(a), which adds back interest attributable to the System
Fund, increased by $35m to an expense of $200m, driven by the increase in net
debt and average interest rates on bond debt.
Foreign exchange gains and losses
Foreign exchange gains of $37m (2024: losses of $25m) are predominantly due to
translation of intra-group US dollar monetary assets and liabilities held by
subsidiaries with a sterling functional currency.
Remeasurement losses on contingent purchase consideration
Contingent purchase consideration arose on the acquisition of Regent and, from
2025, the acquisition of the Ruby brand. The loss of $8m (2024: $4m loss) is
principally the unwind of the discount due to the passage of time. The total
contingent purchase consideration liability at 31 December 2025 is $98m
(31 December 2024: $73m).
Taxation
The adjusted tax rate(a) for 2025 was 27.2% (2024: 27.3%). The total tax
charge includes a net exceptional charge of $16m (2024: $nil), comprising a
charge of $21m following the completion of an intra-group restructuring
transaction offset by the tax impacts of the operating exceptional items.
Tax paid in 2025 totalled $307m (2024: $309m), including exceptional tax paid
of $34m related to the settlement of a tax liability which originally arose as
a result of the acquisition of Holiday Inn in 1990. Further information on tax
can be found in note 6 to the Financial Statements.
Earnings per share
The Group's basic earnings per ordinary share is 490.9¢ (2024: 389.6¢).
Adjusted earnings per ordinary share(a) increased by 68.9¢ (15.9%) to
501.3¢.
Dividends and shareholder returns
The Board is proposing a final dividend of 125.9¢ in respect of 2025, an
increase of 10% on 2024. With the interim dividend of 58.6¢ paid in October
2025, the total dividend for the year would therefore be 184.5¢, representing
an increase of 10% on 2024. The ex-dividend date for ordinary shares is
Thursday 9 April 2026 and for American Depositary Receipts the ex-dividend
date is Friday 10 April 2026. The record date (for both ordinary shares and
American Depositary Receipts) is Friday 10 April 2026. The corresponding
dividend amount in pence sterling per ordinary share will be announced on
Monday 27 April 2026, calculated based on the average of the market exchange
rates for the three working days commencing 22 April 2026. Subject to
shareholder approval at the AGM on Thursday 7 May 2026, the dividend will be
paid on Thursday 14 May 2026.
Registered shareholders may elect to receive their dividend payments in US
Dollars (USD) instead of British Pounds (GBP). Elections to receive dividend
payments in USD can be made by completing the Currency Form which is available
from www.shareview.info/products/directdividends. Alternatively, registered
shareholders can contact the Company's Registrar, Equiniti, by telephone on
+44 (0) 371 384 2132 to request a Currency Form. For shares held in CREST, an
election for USD will be permitted using the CREST dividend election process.
CREST participants should ensure a USD CREST Memorandum Account has been
enabled.
A Dividend Reinvestment Plan ("DRIP") is provided by Equiniti Financial
Services Limited. The DRIP enables the Company's shareholders to elect to have
their cash dividend payments used to purchase the Company's shares. More
information can be found at www.shareview.co.uk/info/drip. The cut-off date
and time for the receipt of USD payment elections and DRIP elections for the
final dividend referred to above is 23 April 2026 at 5:00pm (UK time).
The Board has approved a $950m share buyback programme in 2026. This follows
the $900m programme in 2025, $800m programme in 2024, the $750m programme
announced in 2023 and the $500m programme in 2022, which already reduced the
total number of voting rights in the Company by 4.8%, 4.6%, 6.1% and 5.0%,
respectively. In 2025, 7.6m shares were repurchased for $892m.
a. Definitions for non-GAAP measures can be found in the 'Key
performance measures and non-GAAP measures' section, along with
reconciliations of these measures to the most directly comparable line items
within the Financial Statements.
Summary of cash flow, working capital, net debt and liquidity
Adjusted EBITDA(a) reconciliation 12 months ended 31 December
2025 2024
$m $m
Cash flow from operations 1,361 1,149
Cash flows relating to operating exceptional items 23 (8)
Impairment loss on financial assets (21) (16)
Other impairment charges (2) (6)
Other non-cash adjustments to operating profit (93) (77)
System Fund and reimbursable result 46 83
System Fund depreciation and amortisation (79) (80)
Other non-cash adjustments to System Fund result (46) (37)
Working capital and other adjustments (36) (56)
Capital expenditure: contract acquisition costs, net of repayments 179 237
_____ _____
Adjusted EBITDA(a) 1,332 1,189
_____ _____
CASH FLOW SUMMARY 12 months ended 31 December
2025 2024 $m
$m $m change
Adjusted EBITDA(a) 1,332 1,189 143
Working capital and other adjustments 36 56
Repayments related to investments supporting the Group's insurance activities 3 5
Impairment loss on financial assets 21 16
Other impairment charges 2 6
Other non-cash adjustments to operating profit 93 77
System Fund and reimbursable result (46) (83)
Non-cash adjustments to System Fund result 125 117
Capital expenditure: key money contract acquisition costs, net of repayments (177) (206)
Capital expenditure: gross maintenance (31) (31)
Net interest paid (156) (113)
Tax paid(b) (273) (309)
Principal element of lease payments, net of finance lease receipts (26) (42)
Purchase of own shares by employee share trusts (10) (27)
_____ _____ _____
Adjusted free cash flow(a) 893 655 238
Cash flows relating to exceptional items(b) (57) 8
Capital expenditure: gross recyclable investments (16) (68)
Capital expenditure: gross System Fund capital investments (43) (45)
Purchase of brands (120) -
Deferred purchase consideration paid - (13)
Disposals and repayments, including proceeds from other financial assets 11 15
Repurchase of shares, including transaction costs (897) (804)
Dividends paid to shareholders (270) (259)
Other financing cash flows 6 -
_____ _____ _____
Net cash flow before other net debt(a) movements (493) (511) 18
Add back principal element of lease repayments 30 46
Exchange and other non-cash adjustments (88) (45)
_____ _____ _____
Increase in net debt(a) (551) (510) (41)
Net debt(a) at beginning of the year (2,782) (2,272)
Net debt(a) at end of the year (3,333) (2,782) (551)
_____ _____ _____
a. Definitions for non-GAAP measures can be found in the 'Key
performance measures and non-GAAP measures' section, along with
reconciliations of these measures to the most directly comparable line items
within the Financial Statements.
b. In 2025 'Tax paid' excludes, and 'Cash flows relating to
exceptional items' includes, $34m of exceptional tax paid.
Cash flow from operations
For the year ended 31 December 2025, cash flow from operations was $1,361m,
an increase of $212m on the previous year. This was predominantly due to the
higher operating profit from reportable segments(a), lower contract
acquisition costs and an improvement in the System Fund and reimbursable
result.
Cash flow from operations is the principal source of cash used to fund
interest and tax payments, capital expenditure, ordinary dividend payments and
additional returns of capital to shareholders.
Adjusted free cash flow(a)
Adjusted free cash flow(a) was an inflow of $893m, an increase of $238m on the
prior year. Adjusted EBITDA(a) increased by $143m due to the improvement in
trading and growth in ancillary fee streams. The System Fund and reimbursable
result improved by $37m, reflecting System Fund revenue growth and the impact
of the global efficiency programme, partly offset by increased investments in
marketing and loyalty. Key money contract acquisition costs net of repayments
reduced by $29m, and tax payments (excluding exceptional items) were $36m
lower due to US tax reforms. These movements were partly offset by a $43m
increase in net interest paid reflecting the increase in average net debt.
Working capital and other adjustments of $36m includes $107m of cash inflow
related to deferred revenue, driven primarily by $74m related to the loyalty
programme and $37m of upfront cash flows associated with the new US co-brand
credit card agreements.
Net and gross capital expenditure(a)
Net capital expenditure(a) was $185m (2024: $253m) and gross capital
expenditure(a) was $269m (2024: $350m). Gross capital expenditure(a)
comprised: $179m of key money contract acquisition costs; $31m of maintenance;
$16m gross recyclable investments; and $43m System Fund capital investments.
Net capital expenditure(a) includes key money repayments of $2m and offsets
from other disposals and repayments of $4m, and $78m System Fund depreciation
and amortisation.
Net debt(a)
Net debt(a) increased by $551m from $2,782m at 31 December 2024 to $3,333m at
31 December 2025. During the year, the Group invested $120m to purchase the
Ruby brand and there were $1,167m of payments related to ordinary dividends
and the share buyback programmes, including transaction costs. The change in
net debt(a) includes adverse net foreign exchange impacts of $69m and $19m of
other non-cash adjustments.
Sources of liquidity
As at 31 December 2025, the Group had total liquidity of $2,599m
(31 December 2024: $2,319m), comprising $1,500m of undrawn bank facilities
and $1,099m of cash and cash equivalents (net of overdrafts and restricted
cash). The increase in total liquidity from December 2024 of $280m is
primarily due to net additional bond funding of $587m and $150m from the
increase in the new bank revolving credit facility, offset by net cash
outflows of $493m.
The Group currently has $4,198m of sterling and euro bonds outstanding. The
bonds mature in August 2026 (£350m), May 2027 (€500m), October 2028
(£400m), November 2029 (€600m), September 2030 (€850m) and September 2031
(€750m). There are currency swaps in place on the euro bonds, fixing the May
2027 bond at £436m, the November 2029 bond at $657m, the September 2030 bond
at $990m and the September 2031 bond at $834m. The Group currently has senior
unsecured long-term credit ratings of BBB from S&P and Baa2 from Moody's.
In December 2025, the Group entered into a new $1,500m syndicated bank
revolving credit facility (RCF) and the previous $1,350m facility was
cancelled on the same day. The new five-year RCF matures in December 2030.
There are two one-year extension options that are at the lenders' discretion.
There are no financial covenants in the RCF.
The RCF was undrawn at 31 December 2025.
It is management's opinion that the current working capital levels and
available facilities are sufficient for the Group's present liquidity
requirements.
a. Definitions for non-GAAP measures can be found in the 'Key
performance measures and non-GAAP measures' section, along with
reconciliations of these measures to the most directly comparable line items
within the Financial Statements.
Additional revenue, global system size and pipeline analysis
Disaggregation of total gross revenue in IHG's system
Total gross revenue(a) provides a measure of the overall strength of the
Group's brands. It comprises total rooms revenue from franchised hotels and
total hotel revenue from managed, exclusive partner and owned & leased
hotels and excludes revenue from the System Fund and reimbursement of costs.
Other than owned & leased hotels, total gross revenue is not revenue
attributable to IHG as it is derived from hotels owned by third parties.
12 months ended 31 December
2025 2024 %
$bn $bn Change(b)
Analysed by brand
InterContinental 5.6 5.3 5.6
Kimpton 1.5 1.4 5.9
Hotel Indigo 1.1 1.0 14.0
Crowne Plaza 3.7 3.7 (1.3)
Holiday Inn Express 9.7 9.6 1.4
Holiday Inn 6.1 6.0 1.3
Staybridge Suites 1.4 1.3 4.1
Candlewood Suites 1.0 0.9 5.3
Other 5.1 4.2 24.0
_____ _____ _____
Total 35.2 33.4 5.3
_____ _____ _____
Analysed by ownership type
Franchised(c) (revenue not attributable to IHG) 22.2 21.2 5.1
Managed (revenue not attributable to IHG) 12.5 11.7 5.6
Owned & leased (revenue recognised in Group income statement) 0.5 0.5 5.4
_____ _____ _____
Total 35.2 33.4 5.3
_____ _____ _____
Total gross revenue in IHG's system increased by 5.3% (4.7% increase at
constant currency) to $35.2bn, driven by the combination of RevPAR growth and
the increase in the number of hotels in our system.
a. Definitions for total gross revenue can be found in the 'Key
performance measures and non-GAAP measures' section to accompany the above
reconciliation to the Financial Statements
b. Year-on-year percentage movement calculated from unrounded source
figures to provide more precise growth indicators for these figures which are
presented in billions of dollars.
c. Includes exclusive partner hotels.
RevPAR(a) movement summary at constant exchange rates (CER)
Full Year 2025 vs 2024 Q4 2025 vs 2024
RevPAR ADR Occupancy RevPAR ADR Occupancy
Global 1.5% 0.8% 0.5%pts 1.6% 1.1% 0.3%pts
Americas 0.3% 0.5% (0.1)%pts (1.4)% (0.1)% (0.9)%pts
EMEAA 4.6% 2.4% 1.6%pts 7.1% 3.3% 2.7%pts
Greater China (1.6)% (2.4)% 0.5%pts 1.1% 0.3% 0.5%pts
RevPAR(a) movement at CER vs actual exchange rates (AER)
Full Year 2025 vs 2024 Q4 2025 vs 2024
CER AER Difference CER AER Difference
(as above) (as above)
Global 1.5% 2.1% 0.6%pts 1.6% 3.1% 1.5%pts
Americas 0.3% 0.1% (0.2)%pts (1.4)% (1.0)% 0.4%pts
EMEAA 4.6% 6.8% 2.2%pts 7.1% 10.4% 3.3%pts
Greater China (1.6)% (1.4)% 0.2%pts 1.1% 2.4% 1.3%pts
a. RevPAR (revenue per available room), ADR (average daily rate) and
occupancy are on a comparable basis, based on comparability as at 31 December
2025 and include 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 'Key
performance measures and non-GAAP measures' section for further information on
the definition of RevPAR.
Hotels Rooms
Global hotel and room count Change over Change over
2025 2024 2025 2024
31 December 31 December 31 December 31 December
Analysed by brand
Six Senses 27 - 2,067 117
Regent 11 - 3,212 -
InterContinental 242 15 77,027 3,243
Vignette Collection 31 11 7,256 3,291
Kimpton 85 8 16,208 2,177
Hotel Indigo 191 22 25,676 2,883
voco 124 37 25,227 4,851
Ruby 17 17 2,952 2,952
HUALUXE 24 2 6,426 424
Crowne Plaza 424 9 113,887 263
EVEN Hotels 46 13 6,896 1,814
Holiday Inn Express 3,292 55 351,400 7,443
Holiday Inn 1,247 (2) 225,926 594
Garner 89 66 8,501 6,101
avid hotels 87 11 7,677 875
Atwell Suites 9 3 928 372
Staybridge Suites 350 15 38,287 1,764
Holiday Inn Club Vacations 26 (4) 9,138 (730)
Candlewood Suites 423 31 37,552 2,735
Iberostar Beachfront Resorts 62 7 21,001 1,415
Other 156 18 38,933 (3,532)
_____ _____ _____ _____
Total 6,963 334 1,026,177 39,052
_____ _____ _____ _____
Analysed by ownership type
Franchised(a) 5,886 290 748,178 29,961
Managed 1,060 43 273,808 8,936
Owned & leased 17 1 4,191 155
_____ _____ _____ _____
Total 6,963 334 1,026,177 39,052
_____ _____ _____ _____
a. Includes exclusive partner hotels.
Hotels Rooms
Global Pipeline Change over Change over
2025 2024 2025 2024
31 December 31 December 31 December 31 December
Analysed by brand
Six Senses 39 1 2,946 51
Regent 12 3 2,210 223
InterContinental 104 3 26,734 1,042
Vignette Collection 45 10 7,087 698
Kimpton 69 8 13,288 1,155
Hotel Indigo 131 1 20,885 1,454
voco 108 18 21,453 5,825
Ruby 19 19 3,789 3,789
HUALUXE 23 (1) 6,040 (253)
Crowne Plaza 154 14 38,232 2,963
EVEN Hotels 26 (6) 4,861 (706)
Holiday Inn Express 655 18 81,358 2,136
Holiday Inn 295 29 53,559 1,882
Garner 77 (17) 6,953 (1,814)
avid hotels 116 (21) 8,676 (1,973)
Atwell Suites 56 2 5,822 362
Staybridge Suites 150 (7) 16,618 (697)
Candlewood Suites 194 11 14,465 166
Iberostar Beachfront Resorts 5 (2) 2,415 (32)
Other 14 (1) 2,135 (1,997)
_____ _____ _______ ______
Total 2,292 82 339,526 14,274
_____ _____ _______ ______
Analysed by ownership type
Franchised(a) 1,635 37 198,623 7,018
Managed 657 46 140,903 7,411
Owned & leased - (1) - (155)
_____ _____ _______ ______
Total 2,292 82 339,526 14,274
_____ _____ _______ ______
a. Includes exclusive partner hotels.
Net system size increased by 4.0% year-on-year to 1,026.2k rooms. During the
year, 65.1k rooms (443 hotels) opened, representing an increase of 6.0k rooms
(72 hotels) from the prior year. Reflecting the continued focus on the quality
of our estate, 26.0k rooms (109 hotels) left the IHG system in 2025, resulting
in a removals rate of 2.6%, and an increase of 7,831 rooms (4 hotels) compared
to 2024.
After adjusting for the impact of removing 7,092 rooms previously affiliated
with The Venetian Resort Las Vegas, net system size increased by 4.7%, with a
removals rate of 1.9%.
At the end of 2025, the global pipeline totalled 339.5k rooms (2,292 hotels),
an increase of 14.3k rooms (82 hotels), as signings outpaced openings and
terminations.
During the year, 102.1k rooms (694 hotels) were signed, including 6,741 Ruby
rooms (36 hotels), of which 5,718 rooms (30 hotels) were part of the
initial agreement. Signings in 2025 represented a 4,188 rooms (20 hotels)
decrease from the prior year, which included 17,703 rooms (119 hotels) as
part of the initial NOVUM Hospitality agreement.
Regional performance reviews, system size and pipeline analysis
AMERICAS
12 months ended 31 December
Americas results
2025 2024 %
$m $m change
Revenue from the reportable segment(a)
Fee business 963 979 (1.6)
Owned & leased 166 162 2.5
_____ _____ _____
1,129 1,141 (1.1)
_____ _____ _____
Operating profit from the reportable segment(a)
Fee business 804 795 1.1
Owned & leased 32 33 (3.0)
_____ _____ _____
836 828 1.0
Operating exceptional items (2 ) 4 NM(b)
_____ _____ _____
Operating profit 834 832 0.2
_____ _____ _____
12 months ended
Americas Comparable RevPAR(a) movement on previous year 31 December 2025
Fee business
InterContinental 4.6%
Kimpton 1.3%
Hotel Indigo 0.3%
Crowne Plaza 0.5%
EVEN Hotels (1.2)%
Holiday Inn Express 0.2%
Holiday Inn (0.7)%
avid hotels (1.2)%
Staybridge Suites 0.3%
Candlewood Suites (0.6)%
All brands 0.3%
Owned & leased
All brands 1.6%
Despite some turbulent trading conditions, RevPAR grew +0.3% (Q1 +3.5%, Q2
-0.5%, Q3 -0.9%, Q4 -1.4%), with occupancy -0.1%pts and rate +0.5%. US RevPAR
declined by -0.1% for the year, with growth of +3.5% in Q1 moving to a decline
of -0.9% in Q2 driven by the shift in timing of Easter between March and April
and the onset of reduction in certain types of business and leisure travel,
such as lower international inbound demand and less government travel. US
RevPAR declined -1.6% in Q3 and -2.0% in Q4, the most recent quarter facing a
tougher year-over-year comparison due to hurricane-related demand in 2024.
Outside of the US, RevPAR for the year grew +4.0%, with growth in each of
Canada, Mexico and our Latin American & Caribbean sub-region. Rooms
revenue for the overall region on a comparable hotel basis in 2025 was
strongest for Business bookings which were up +2% YOY, whilst Groups was down
-1% and Leisure -2% on 2024 levels.
Revenue from the reportable segment(a) decreased by $12m (-1.1%) to $1,129m.
Operating profit increased by $2m to $834m, including a $2m exceptional cost
in relation to the global efficiency programme, compared to an exceptional
income of $4m in the prior year (further information on exceptional items can
be found in note 5 to the Financial Statements). Operating profit from the
reportable segment(a) increased by $8m (+1.0%) to $836m.
Fee business revenue decreased by $16m (-1.6%) to $963m. Whilst RevPAR (which
is on a comparable hotels and constant currency basis) was up +0.3%, this was
offset by lower revenue from a number of non-comparable hotels including those
exiting the system and others undergoing renovation, small reductions in
certain other fee revenue areas, adverse currency movements and one fewer
trading day from the leap-year impact. There were $20m of incentive management
fees earned (2024: $21m). Fee business operating profit increased by $9m
(+1.1%) to $804m, supported by system growth and cost efficiencies. This led
to fee margin(a) growing to 83.4% compared to 81.2% in 2024.
Owned & leased revenue increased by $4m (+2.5%) to $166m, with RevPAR up
+1.6%, reflecting the specific trading environments related to this small
portfolio of just four hotels (only three of which were comparable for
RevPAR). Owned & leased operating profit decreased by $1m (-3.0%) to $32m.
a. Definitions for non-GAAP measures can be found in the 'Key
performance measures and non-GAAP measures' section, along with
reconciliations of these measures to the most directly comparable line items
within the Financial Statements.
b. Percentage change considered not meaningful, such as where a
positive balance in the latest period is comparable to a negative or zero
balance in the prior period.
Hotels Rooms
Americas hotel and room count Change over Change over
2025 2024 2025 2024
31 December 31 December 31 December 31 December
Analysed by brand
Six Senses 2 - 81 -
Regent 1 - 167 -
InterContinental 48 3 17,055 783
Vignette Collection 3 1 805 214
Kimpton 62 1 11,289 206
Hotel Indigo 82 7 10,944 816
voco 28 9 2,993 928
Crowne Plaza 101 (3) 25,020 (1,336)
EVEN Hotels 27 5 3,586 464
Holiday Inn Express 2,542 16 232,517 1,768
Holiday Inn 661 (16) 106,181 (3,345)
Garner 33 23 2,687 1,932
avid hotels 87 11 7,677 875
Atwell Suites 8 2 754 198
Staybridge Suites 327 15 34,474 1,701
Holiday Inn Club Vacations 26 (4) 9,138 (730)
Candlewood Suites 417 25 36,921 2,104
Iberostar Beachfront Resorts 26 2 9,443 176
Other 122 15 17,462 (5,554)
_____ ____ _______ ______
Total 4,603 112 529,194 1,200
_____ ____ _______ ______
Analysed by ownership type
Franchised(a) 4,432 113 493,389 1,883
Managed 167 (1) 34,468 (683)
Owned & leased 4 - 1,337 -
_____ ____ _______ ______
Total 4,603 112 529,194 1,200
_____ ____ _______ ______
a. Includes exclusive partner hotels.
Hotels Rooms
Americas Pipeline Change over Change over
2025 2024 2025 2024
31 December 31 December 31 December 31 December
Analysed by brand
Six Senses 9 - 649 (11)
InterContinental 9 (2) 2,229 (557)
Vignette Collection 4 - 282 (193)
Kimpton 30 - 5,522 (163)
Hotel Indigo 24 (3) 3,071 (167)
voco 27 4 3,539 927
Crowne Plaza 6 - 1,127 83
EVEN Hotels 4 (4) 483 (466)
Holiday Inn Express 336 (1) 31,478 (550)
Holiday Inn 65 - 7,744 (46)
Garner 50 7 4,145 650
avid hotels 116 (21) 8,676 (1,973)
Atwell Suites 50 (2) 4,968 (254)
Staybridge Suites 135 (7) 14,007 (967)
Candlewood Suites 184 9 13,175 (24)
Iberostar Beachfront Resorts 4 (2) 2,144 (32)
Other 14 - 2,135 (217)
_____ ____ _______ ______
Total 1,067 (22) 105,374 (3,960)
_____ ____ _______ ______
Analysed by ownership type
Franchised(a) 1,023 (20) 98,598 (3,477)
Managed 44 (2) 6,776 (483)
_____ ____ _______ ______
Total 1,067 (22) 105,374 (3,960)
_____ ____ _______ ______
a. Includes exclusive partner hotels.
Gross system growth was +3.6%, another year of acceleration, with the opening
of 18.8k rooms (178 hotels) in the Americas region, of which 6.7k rooms (72
hotels) opened in Q4. Openings in the year included 51 hotels across the
Holiday Inn Brand Family and a further 41 properties across the Staybridge
Suites and Candlewood Suites brands. There were 11 more avid hotels added to
reach 87 open (with 116 more in the pipeline), and 23 Garner conversions took
the open portfolio to 33 as it rapidly developed in the two years since
becoming franchise-ready, with a further 50 in its pipeline. The voco brand
added nine more conversions taking its portfolio to 28, with 27 more in the
pipeline as it rolled out further across the region. Openings across our
Luxury & Lifestyle brands included three more for InterContinental -
Indianapolis, Monterrey and Lima - the latter a debut for the brand in Peru
which was also the case with openings for Hotel Indigo and Vignette Collection
in that market. Conversions accounted for 57% of all room openings in the
year.
Net system size grew +0.2% for the year on a reported basis, after removals of
17.6k rooms (66 hotels) in the year representing 3.3% of the system size at
the start of the year. Adjusting for the impact of removing 7.1k rooms
previously affiliated with The Venetian Resort Las Vegas, net system size grew
+1.6%, with a removal rate of +2.0%.
There were 26.6k rooms (268 hotels) signed during the year, including 9.5k
rooms (92 hotels) during Q4. Strong development activity continued for our
Essentials and Suites brands - there were 88 signings across the Holiday Inn
Brand Family and 79 across Staybridge, Candlewood and Atwell. Ongoing demand
for conversions also saw 32 signings for Garner and 16 for voco, including the
first resort for the voco brand in Jamaica and a portfolio of six hotels in
Mexico. Examples such as voco Sandpiper Port St. Lucie (the brand's first
all-inclusive property in the US), voco Kissimmee Orlando and numerous other
resort-focused properties for Holiday Inn reflect signings that can quickly
become openings in a small number of months, with other notable conversions
including Crowne Plaza Merida, Mexico, and Hotel Indigo Myrtle Beach. There
were 12 signings across our Luxury & Lifestyle brands including: a Six
Senses resort and residences in southern Utah; Kimpton's entry into Napa
Valley, California, and the Kimpton Miralina Resort & Villas in
Scottsdale, Arizona; two further signings for each of InterContinental and the
Vignette Collection; and a further five signings added to the Hotel Indigo
pipeline.
The pipeline stands at 105.4k rooms (1,067 hotels), which represents 20% of
the current system size in the region.
EMEAA
12 months ended 31 December
EMEAA results
2025 2024 %
$m $m change
Revenue from the reportable segment(a)
Fee business 433 395 9.6
Owned & leased 378 353 7.1
_____ _____ _____
811 748 8.4
_____ _____ _____
Operating profit from the reportable segment(a)
Fee business 292 258 13.2
Owned & leased 11 12 (8.3 )
_____ _____ _____
303 270 12.2
Operating exceptional items (13 ) (4 ) 225.0
_____ _____ _____
Operating profit 290 266 9.0
_____ _____ _____
12 months ended
EMEAA comparable RevPAR movement on previous year 31 December 2025
Fee business
Six Senses 16.4 %
InterContinental 7.0 %
Hotel Indigo 3.4 %
voco 6.7 %
Crowne Plaza 5.4 %
Holiday Inn Express 1.4 %
Holiday Inn 2.4 %
Staybridge Suites 3.3 %
All Brands 4.7 %
Owned & leased
All Brands 2.1 %
RevPAR grew +4.6%, with occupancy +1.6%pts and rate +2.4%. Strong RevPAR
growth of +5.0% in Q1 was followed by +3.0% in Q2, in part due to fewer
travel-related international events compared to the prior year. RevPAR grew
+2.8% in Q3 and then strongly re-accelerated to +7.1% in Q4 driven broadly
evenly by increases in occupancy and rate and with good growth in each of
Business, Leisure and Groups demand drivers. By major geographic markets,
RevPAR for the year was +1.1% in the UK, +4.2% in Continental Europe, +5.5%
for the East Asia & Pacific region and +8.8% in the Middle East. Rooms
revenue for the overall region on a comparable hotel basis in 2025 was
strongest for Business demand which was up +5% YOY, with Groups bookings up
+4% and Leisure up +3% on 2024 levels.
Revenue from the reportable segment(a) increased by $63m (+8.4%) to $811m.
Operating profit increased by $24m to $290m, including a $13m exceptional cost
in relation to the global efficiency programme and commercial litigation and
disputes (further information on exceptional items can be found in note 5 to
the Financial Statements). Operating profit from the reportable segment(a)
increased by $33m (+12.2%) to $303m.
Fee business revenue increased by $38m (+9.6%) to $433m, driven by RevPAR
(which is on a comparable hotels and constant currency basis) up +4.7% and the
fees added from net system growth. There were $134m of incentive management
fees earned (2024: $118m). Fee business operating profit increased by $34m
(+13.2%) to $292m and fee margin(a) increased to 67.4% compared to 65.3% in
2024, with positive operating leverage driven by the trading performance,
system growth and cost efficiencies.
Owned & leased revenue increased by $25m (+7.1%) to $378m, with RevPAR on
a comparable hotels and constant currency basis up +2.1%. Reflecting the
trading conditions, cost bases and variable rent structures of this largely
urban-centred portfolio of 13 hotels, an operating profit of $11m was achieved
compared to $12m in 2024.
a. Definitions for non-GAAP measures can be found in the 'Key performance
measures and non-GAAP measures' section, along with reconciliations of these
measures to the most directly comparable line items within the Financial
Statements..
Hotels Rooms
EMEAA hotel and room count Change over Change over
2025 2024 2025 2024
31 December 31 December 31 December 31 December
Analysed by brand
Six Senses 24 - 1,856 117
Regent 4 - 991 -
InterContinental 128 7 35,341 1,396
Vignette Collection 21 8 4,666 2,557
Kimpton 18 5 3,685 1,187
Hotel Indigo 74 8 9,037 833
voco 68 17 16,862 2,254
Ruby 17 17 2,952 2,952
Crowne Plaza 185 4 43,796 (94)
Holiday Inn Express 363 3 53,601 766
Holiday Inn 426 1 78,097 702
Garner 56 43 5,814 4,169
Staybridge Suites 23 - 3,813 63
Candlewood Suites 6 6 631 631
Iberostar Beachfront Resorts 36 5 11,558 1,239
Other 29 5 14,902 2,356
_____ ____ _______ ______
All Brands 1,478 129 287,602 21,128
_____ ____ _______ ______
Analysed by ownership type
Franchised(a) 1,025 94 170,049 13,511
Managed 440 34 114,699 7,462
Owned & leased 13 1 2,854 155
_____ ____ _______ ______
Total 1,478 129 287,602 21,128
_____ ____ _______ ______
a. Includes exclusive partner hotels.
Hotels Rooms
EMEAA Pipeline Change over Change over
2025 2024 2025 2024
31 December 31 December 31 December 31 December
Analysed by brand
Six Senses 29 1 2,225 44
Regent 10 3 1,683 223
InterContinental 64 4 15,694 1,168
Vignette Collection 32 7 4,494 115
Kimpton 21 6 3,550 1,296
Hotel Indigo 54 5 9,185 1,977
voco 59 9 12,463 3,047
Ruby 19 19 3,789 3,789
Crowne Plaza 73 14 17,202 3,181
EVEN Hotels 2 2 555 555
Holiday Inn Express 100 11 15,699 1,360
Holiday Inn 127 13 23,347 528
Garner 27 (24) 2,808 (2,464)
Staybridge Suites 15 - 2,611 270
Candlewood Suites 10 2 1,290 190
Iberostar Beachfront Resorts 1 - 271 -
Other - (1) - (1,780)
____ ____ ______ ______
All Brands 643 71 116,866 13,499
____ ____ ______ ______
Analysed by ownership type
Franchised(a) 289 25 42,730 5,158
Managed 354 47 74,136 8,496
Owned & leased - (1) - (155)
____ ____ ______ ______
Total 643 71 116,866 13,499
____ ____ ______ ______
a. Includes exclusive partner hotels.
Gross system growth was +9.0% for the year with the opening of 24.1k rooms
(147 hotels) in the EMEAA region, of which 8.0k rooms (40 hotels) opened in
Q4. Openings in the year included the first 17 Ruby hotels (3.0k rooms) added
into IHG's system in the initial phase of integration. A further 38
conversions (3.8k rooms) as part of the NOVUM Hospitality agreement were
added, taking the total to date to 96 out of the total of 119 open and
pipeline hotels at the time of the initial agreement. There were further
conversion openings within the 17 openings for the voco brand (including the
first in Thailand) and eight for Vignette Collection (including Ciel Dubai
Marina, the world's tallest hotel). There were 20 other openings across our
Luxury & Lifestyle brands, including: InterContinental Table Bay Cape
Town, InterContinental Brisbane and InterContinental the Red Sea Resort in
Saudi Arabia; and Kimpton Main Frankfurt (a debut for the brand in Germany)
and Kimpton Atlantico Algarve, Kimpton Naluria Kuala Lumpur and Kimpton KAFD
Riyadh marking further country debuts. There were 15 Holiday Inn Brand Family
openings (including the first dual-branded Holiday Inn in Australia, alongside
Hotel Indigo), and nine for Crowne Plaza including Lucknow which marked the
50th open hotel in India. Conversions accounted for 63% of all room openings
in the year.
Net system size grew +7.9% for the year, after removals of 3.0k rooms (18
hotels) representing a 1.1% removal rate. The NOVUM Hospitality properties
contributed +1.4% to the system growth for the year, and the initial Ruby
additions contributed +1.1%.
There were 43.4k rooms (248 hotels) signed during the year, including 11.5k
rooms (69 hotels) during Q4. There were 30 Ruby signings (5.7k rooms) for the
20 open and 10 pipeline hotels at the time of acquisition, with six further
Ruby signings achieved since then. There were 23 signings for the voco brand
and 19 for Garner, the latter including Garner Edinburgh Haymarket which
reflected the brand's ability to deliver a high-quality conversion in just
three months from signing to opening. The Garner signings also included firsts
for the brand in India, Thailand and Italy. Within 62 signings across IHG's
Luxury & Lifestyle brands, 25% of all signings in the year, these
included: Six Senses Bangkok, Thailand, and Myoko, Japan; a further 13 for
InterContinental (including two each in Japan and India); debuts for Kimpton
in the UAE, Morocco and Austria; and 14 signings for the Vignette Collection
across almost as many countries which contributed to the overall strength of
conversion signings for the region. The attraction to owners of our
established brands was also reflected in 24 Crowne Plaza signings (including
Marne-la-Vallée near Disneyland Paris), 29 for Holiday Inn Express and 39 for
Holiday Inn, whilst two signings for EVEN Hotels will introduce that brand to
the Middle East and the wider EMEAA region. Other flagship signings included a
triple-branded project (InterContinental, Kimpton and Holiday Inn) near
Universal Studios Japan.
The pipeline stands at 116.9k rooms (643 hotels), which represents 41% of the
current system size in the region.
GREATER CHINA
12 months ended 31 December
Greater China results 2025 2024 %
$m $m change
Revenue from the reportable segment(a)
Fee business 165 161 2.5
_____ _____ _____
165 161 2.5
_____ _____ _____
Operating profit from the reportable segment(a)
Fee business 99 98 1.0
_____ _____ _____
Operating profit 99 98 1.0
_____ _____ _____
12 months ended
Greater China comparable RevPAR movement on previous year 31 December 2025
Fee business
Regent 19.1%
InterContinental (2.0)%
Hotel Indigo 5.1%
HUALUXE (1.6)%
Crowne Plaza (2.9)%
Holiday Inn Express (6.5)%
Holiday Inn (4.9)%
All brands (1.6)%
RevPAR was -1.6%, with occupancy +0.5%pts higher and rate -2.4% lower. Q1
RevPAR of -3.5% was followed by -3.0% in Q2, further improving sequentially to
-1.8% in Q3 and then returning to growth of +1.1% in Q4 with notable
improvement in Leisure demand. RevPAR for the year was -0.3% in Tier 1 cities
and -4.4% in Tier 2-4 cities. Rooms revenue for the overall region on a
comparable hotel basis in 2025 was broadly flat for Business and Leisure,
while Groups bookings were -4% on 2024 levels.
Revenue from the reportable segment(a) was $4m higher at $165m, with
incremental revenue from system growth more than offsetting the effect of
RevPAR decline in the comparable estate and lower fee streams on reduced
non-room revenue. There were $36m of incentive management fees earned (2024:
$39m). Fee margin(a) reduced to 60.0% compared to 60.9% in 2024, reflecting
strategic one-off cost investments during the year and the reduction in
incentive management fees. Despite these temporary headwinds, supported by the
benefits of our increasing scale and cost efficiencies in the region,
operating profit increased by $1m (+1.0%) to $99m, underscoring the resilience
of the region's operating model.
a. Definitions for non-GAAP measures can be found in the 'Key
performance measures and non-GAAP measures' section, along with
reconciliations of these measures to the most directly comparable line items
within the Financial Statements.
Hotels Rooms
Greater China hotel and room count Change over Change over
2025 2024 2025 2024
31 December 31 December 31 December 31 December
Analysed by brand
Six Senses 1 - 130 -
Regent 6 - 2,054 -
InterContinental 66 5 24,631 1,064
Vignette Collection 7 2 1,785 520
Kimpton 5 2 1,234 784
Hotel Indigo 35 7 5,695 1,234
voco 28 11 5,372 1,669
HUALUXE 24 2 6,426 424
Crowne Plaza 138 8 45,071 1,693
EVEN Hotels 19 8 3,310 1,350
Holiday Inn Express 387 36 65,282 4,909
Holiday Inn 160 13 41,648 3,237
Atwell Suites 1 1 174 174
Other 5 (2) 6,569 (334)
_____ ____ _______ ______
Total 882 93 209,381 16,724
_____ ____ _______ ______
Analysed by ownership type
Franchised 429 83 84,740 14,567
Managed 453 10 124,641 2,157
_____ ____ _______ ______
Total 882 93 209,381 16,724
_____ ____ _______ ______
Hotels Rooms
Greater China Pipeline Change over Change over
2025 2024 2025 2024
31 December 31 December 31 December 31 December
Analysed by brand
Six Senses 1 - 72 18
Regent 2 - 527 -
InterContinental 31 1 8,811 431
Vignette Collection 9 3 2,311 776
Kimpton 18 2 4,216 22
Hotel Indigo 53 (1) 8,629 (356)
voco 22 5 5,451 1,851
HUALUXE 23 (1) 6,040 (253)
Crowne Plaza 75 - 19,903 (301)
EVEN Hotels 20 (4) 3,823 (795)
Holiday Inn Express 219 8 34,181 1,326
Holiday Inn 103 16 22,468 1,400
Atwell Suites 6 4 854 616
_____ ____ _______ ______
Total 582 33 117,286 4,735
_____ ____ _______ ______
Analysed by ownership type
Franchised 323 32 57,295 5,337
Managed 259 1 59,991 (602)
_____ ____ _______ ______
Total 582 33 117,286 4,735
_____ ____ _______ ______
Gross system growth was +11.5% for the year with the opening of 22.2k rooms
(118 hotels) in the Greater China region, another record level of hotel
openings, of which 4.5k (25 hotels) opened in Q4. Early in 2025 we celebrated
our 800(th) opening and IHG's 50(th) anniversary in Greater China, and the
milestone of 200,000 rooms open in our system was also reached.
Openings in the year saw 67 for the Holiday Inn Brand Family (including key
locations such as Holiday Inn Express Taipei Train Station and Holiday Inn
Shanghai Pudong Airport), 12 Crowne Plaza properties, and a notably strong
year of openings for EVEN Hotels with eight properties added which increased
its portfolio to 19.
As our other brands build scale in the region, there were 11 further voco
properties opened and 16 across our Luxury & Lifestyle brands, including a
Kimpton and a Hotel Indigo at Hainan Clear Water Bay, and the Hangzhou Wulin
GDA Hotel joining the Vignette Collection. Conversions accounted for 36% of
all room openings in the year.
Net system size grew +8.7% for the year, after removals of 5.5k rooms (25
hotels) representing a 2.8% removal rate which has been temporarily elevated
and is expected to normalise back down over the coming years.
There were 32.0k rooms across a record 178 hotels signed during the year,
including 7.3k rooms (39 hotels) during Q4. During the year there were 42
hotel signings for Holiday Inn and a particularly strong 71 for Holiday Inn
Express, growing their pipelines to 103 and 219, respectively, and 13 signings
for Crowne Plaza which has a pipeline of 75 properties. The Atwell Suites
brand was launched in the region towards the end of the prior year, the first
opening in 2025 and another five signings were achieved. There were 23
signings across our Luxury & Lifestyle brands, including eight more for
InterContinental. Our six Luxury & Lifestyle brands represent around 20%
of both the existing system size and the pipeline in the region.
The pipeline stands at 117.3k rooms (582 hotels), which represents 56% of the
current system size in the region.
CENTRAL
12 months ended 31 December
2025 2024 %
Central results $m $m change
Revenue from the reportable segment(a)
Fee business 336 239 40.6
Insurance activities 27 23 17.4
_____ _____ _____
363 262 38.5
_____ _____ _____
Gross costs
Fee business (300) (305 ) (1.6)
Insurance activities (36) (29 ) 24.1
_____ _____ _____
(336) (334 ) 0.6
_____ _____ _____
Operating profit/(loss) from the reportable segment(a)
Fee business 36 (66 ) NM(b)
Insurance activities (9) (6 ) 50.0
_____ _____ _____
27 (72 ) NM(b)
Operating exceptional items (6) - NM(b)
_____ _____ _____
Operating profit/(loss) 21 (72 ) NM(b)
_____ _____ _____
Central fee business revenue is mainly comprised of technology fee income,
co-brand licensing fees and a portion of revenue from the consumption of
certain IHG One Rewards points. Central revenue additionally includes revenue
recognised from insurance activities relating to the managed hotel insurance
programme. Central revenue increased by $101m (38.5%) to $363m. This was
primarily due to incremental fees from previous changes in the arrangements
related to the US co-brand credit card agreements and from the sale of certain
loyalty points (together with certain other ancillary revenues). These revenue
streams were anticipated to contribute within IHG's results from reportable
segments(a) an incremental ~$40m and ~$25m, respectively, with these
step-changes achieved in 2025, along with additional underlying growth.
Gross costs increased by $2m (0.6%) year on year, driven by significant
individual claims in the insurance programme, which were partially offset by
lower costs in the fee business driven by our ongoing focus on efficiencies.
The resulting $27m operating profit from the reportable segment(a) was an
increase of $99m year-on-year. Operating profit of $21m included a $6m
exceptional cost in relation to the global efficiency programme (further
information on exceptional items can be found in note 5 to the Financial
Statements).
a. Definitions for non-GAAP measures can be found in the 'Key performance
measures and non-GAAP measures' section, along with reconciliations of these
measures to the most directly comparable line items within the Financial
Statements.
b. Percentage change considered not meaningful, such as where a positive
balance in the latest period is comparable to a negative or zero balance in
the prior period.
Key performance measures and non-GAAP measures
In addition to performance measures directly observable in the Financial
Statements (International Financial Reporting Standards "IFRS" measures),
certain financial measures are presented when discussing the Group's
performance which are not measures of financial performance or liquidity under
IFRS. In management's view, these measures provide investors and other
stakeholders with an enhanced understanding of IHG's operating performance,
profitability, financial strength and funding requirements. These measures do
not have standardised meanings under IFRS, and companies do not necessarily
calculate these in the same way as each other. As these measures exclude
certain items (for example the costs of individually significant legal cases
or commercial disputes) they may be materially different to the measures
prescribed by IFRS and may result in a more favourable view of performance.
Accordingly, they should be viewed as complementary to, and not as a
substitute for, the measures prescribed by IFRS and as included in the
Financial Statements.
Global revenue per available room (RevPAR) growth
RevPAR is the primary metric used by management to track hotel performance
across regions and brands. RevPAR is also a commonly used performance measure
in the hotel industry.
RevPAR comprises IHG's system rooms revenue divided by the number of room
nights available and can be derived from occupancy rate multiplied by average
daily rate (ADR). ADR is rooms revenue divided by the number of room nights
sold.
References to RevPAR, occupancy and ADR are presented on a comparable basis,
comprising groupings of hotels that have traded in all months in both the
current and comparable year. The principal exclusions in deriving this measure
are new hotels (including those acquired), hotels closed for major
refurbishment and hotels sold in either of the comparable years.
RevPAR and ADR are quoted at a constant US$ exchange rate, in order to allow a
better understanding of the comparable year-on-year trading performance
excluding distortions created by fluctuations in currency movements.
Total gross revenue from hotels in IHG's system
Total gross revenue is revenue not wholly attributable to IHG, however,
management believes this measure is meaningful to investors and other
stakeholders as it provides a measure of system performance, giving an
indication of the strength of IHG's brands and the combined impact of IHG's
growth strategy and RevPAR performance.
Total gross revenue refers to revenue which IHG has a role in driving and from
which IHG derives an income stream.
Total gross revenue comprises:
● Total rooms revenue from franchised hotels;
● Total hotel revenue from managed and exclusive partner hotels
including food and beverage, meetings and other revenues, reflecting the value
driven by IHG and the base upon which fees are typically earned; and
● Total hotel revenue from owned & leased hotels.
Other than total hotel revenue from owned & leased hotels, total gross
revenue is not revenue attributable to IHG as these managed, franchised and
exclusive partner hotels are owned by third parties.
Total gross revenue is used to describe this measure as it aligns with terms
used in the Group's management, franchise and exclusive partner agreements and
therefore is well understood by owners and other stakeholders.
Revenue and operating profit measures
Revenue and operating profit from (1) fee business, (2) owned & leased
hotels, and (3) insurance activities are described as 'revenue from reportable
segments' and 'operating profit from reportable segments', respectively,
within note 3 to the Financial Statements. These measures are presented
insofar as they relate to each of the Group's regions and its Central
functions. Management believes revenue and operating profit from reportable
segments are meaningful to investors and other stakeholders as they exclude
the following elements and reflect how management monitors the business:
● System Fund and reimbursables - the System Fund is not managed to
generate a surplus or deficit for IHG over the longer term; it is managed for
the benefit of the hotels within the IHG system. The System Fund is operated
to collect and administer cash assessments from hotel owners for specific
purposes of use including marketing, the Guest Reservation System, certain
hotel services and the Group's loyalty programme. There is a cost equal to
reimbursable revenues so there is no profit impact. Cost reimbursements are
not applicable to all hotels, and growth in these revenues is not reflective
of growth in the performance of the Group. As such, management does not
include these revenues in their analysis of results.
● Exceptional items - these are identified by virtue of their size,
nature or incidence with consideration given to consistency of treatment with
prior years (including items that impact more than one reporting period) and
between gains and losses. Examples of exceptional items include, but are not
restricted to, gains and losses on the disposal of assets, impairment charges
and reversals, the costs of individually significant legal cases or commercial
disputes, and reorganisation costs. As each item is different in nature and
scope, there will be little continuity in the detailed composition and size of
the reported amounts which affect performance in successive periods. Separate
disclosure of these amounts facilitates the understanding of performance
including and excluding such items. Further detail of amounts presented as
exceptional is included in notes 5 and 6 to the Financial Statements.
In further discussing the Group's performance in respect of revenue and
operating profit, additional non-IFRS measures are used and explained further
below:
● Underlying revenue;
● Underlying operating profit;
● Underlying fee revenue; and
● Fee margin.
Operating profit measures are, by their nature, before interest and tax. The
Group's reported operating profit additionally excludes remeasurement
gains/losses on contingent purchase consideration, which relates to financing
of acquisitions. Management believes such measures are useful for investors
and other stakeholders when comparing performance across different companies
as interest and tax can vary widely across different industries or among
companies within the same industry. For example, interest expense can be
highly dependent on a company's capital structure, debt levels and credit
ratings. In addition, the tax positions of companies can vary because of their
differing abilities to take advantage of tax benefits and because of the tax
policies of the various jurisdictions in which they operate.
Although management believes these measures are useful to investors and other
stakeholders in assessing the Group's ongoing financial performance and
provide improved comparability between periods, there are limitations in their
use as compared to measures of financial performance under IFRS. As such, they
should not be considered in isolation or viewed as a substitute for IFRS
measures. In addition, these measures may not necessarily be comparable to
other similarly titled measures of other companies due to potential
inconsistencies in the methods of calculation.
Underlying revenue and underlying operating profit
These measures adjust revenue from reportable segments and operating profit
from reportable segments, respectively, to exclude revenue and operating
profit generated by owned & leased hotels which have been disposed, and
significant liquidated damages, which are not comparable year-on-year and are
not indicative of the Group's ongoing profitability. The revenue and operating
profit of current year acquisitions are also excluded as these obscure
underlying business results and trends when comparing to the prior year. In
addition, in order to remove the impact of fluctuations in foreign exchange,
which would distort the comparability of the Group's operating performance,
prior year measures are restated at constant currency using current year
exchange rates.
Management believes these are meaningful to investors and other stakeholders
to better understand comparable year-on-year trading and enable assessment of
the underlying trends in the Group's financial performance.
Underlying fee revenue growth
Underlying fee revenue is used to calculate underlying fee revenue growth.
Underlying fee revenue is calculated on the same basis as underlying revenue
as described above but for the fee business only.
Management believes underlying fee revenue is meaningful to investors and
other stakeholders as an indicator of IHG's ability to grow the core fee-based
business, aligned to IHG's asset-light strategy.
Fee margin
Fee margin is presented at actual exchange rates and is a measure of the
profit arising from fee revenue. Fee margin is calculated by dividing fee
operating profit by fee revenue. Fee revenue and fee operating profit are
calculated from revenue from reportable segments and operating profit from
reportable segments, as defined above, adjusted to exclude revenue and
operating profit from the Group's owned & leased hotels as well as from
insurance activities and significant liquidated damages.
Management believes fee margin is meaningful to investors and other
stakeholders as an indicator of the sustainable long-term growth in the
profitability of IHG's core fee-based business, as the scale of IHG's
operations increases with growth in IHG's system size.
Adjusted interest
Adjusted interest is presented before exceptional items and the following
items of interest which are recorded within the System Fund:
● Interest income is recorded in the System Fund on the outstanding
cash balance relating to the IHG loyalty programme. These interest payments
are recognised as interest expense for IHG.
● Other components of System Fund interest income and expense,
including capitalised interest, lease interest expense and interest income on
overdue receivables.
Given results related to the System Fund are excluded from adjusted measures
used by management, these are excluded from adjusted interest and adjusted
earnings per ordinary share (see below).
Management believes adjusted interest is a meaningful measure for investors
and other stakeholders as it provides an indication of the comparable
year-on-year expense associated with financing the business including the
interest on any balance held on behalf of the System Fund.
Adjusted tax
Adjusted tax excludes the impact of foreign exchange gains/losses, exceptional
items, the System Fund and remeasurement gains/losses on contingent
consideration.
Foreign exchange gains/losses vary year on year depending on the movement in
exchange rates, and remeasurement gains/losses on contingent consideration and
exceptional items also vary year on year. These can impact the current year's
tax charge. The System Fund (including interest and tax) is not managed to a
surplus or deficit for IHG over the longer term and is, in general, not
subject to tax. Management believes removing these from both profit and tax
provides a better view of the Group's underlying tax rate on ordinary
operations and aids comparability year on year, thus providing a more
meaningful understanding of the Group's ongoing tax charge.
Adjusted earnings per ordinary share
Adjusted earnings per ordinary share adjusts the profit available for equity
holders used in the calculation of basic earnings per share to remove the
System Fund and reimbursable result, interest attributable to the System Fund
and foreign exchange gains/losses, change in remeasurement gains/losses on
contingent purchase consideration, exceptional items, and the related tax
impacts of such adjustments and exceptional tax.
Management believes that adjusted earnings per share is a meaningful measure
for investors and other stakeholders as it provides a more comparable earnings
per share measure aligned with how management monitors the business.
Net debt
Net debt is used in the monitoring of the Group's liquidity and capital
structure and is used by management in the calculation of the leverage ratios
with the objective of maintaining an investment grade credit rating. Net debt
is used by investors and other stakeholders to evaluate the financial strength
of the business.
Net debt comprises loans and other borrowings, lease liabilities, the
principal amounts payable and receivable on maturity of derivatives swapping
debt values, less cash and cash equivalents. A summary of the composition of
net debt is included in note 10 to the Financial Statements.
Adjusted EBITDA
One of the key measures used by the Group in monitoring its debt and capital
structure is the net debt: adjusted EBITDA ratio, which is managed with the
objective of maintaining an investment grade credit rating. The Group has a
stated aim of targeting this ratio at 2.5-3.0x. Adjusted EBITDA is defined as
cash flow from operations, excluding cash flows relating to exceptional items,
cash flows arising from the System Fund and reimbursable result, other
non-cash adjustments to operating profit or loss, working capital and other
adjustments, and contract acquisition costs.
Adjusted EBITDA is useful to investors as an approximation of operational cash
flow generation.
Adjusted free cash flow, gross capital expenditure, net capital expenditure
These measures have limitations as they omit certain components of the overall
cash flow statement. They are not intended to represent IHG's residual cash
flow available for discretionary expenditures, nor do they reflect the Group's
future capital commitments. These measures are used by many companies, but
there can be differences in how each company defines the terms, limiting their
usefulness as a comparative measure. Therefore, it is important to view these
measures only as a complement to the Group statement of cash flows.
Adjusted free cash flow
Adjusted free cash flow is net cash from operating activities adjusted for:
(1) the inclusion of the cash outflow arising from the purchase of shares by
employee share trusts reflecting the requirement to satisfy incentive schemes
which are linked to operating performance; (2) the inclusion of gross
maintenance capital expenditure; (3) the exclusion of cash flows relating to
exceptional items; and (4) where cash flows are split between categories in
the Group statement of cash flows, cash flows from investing or financing
activities may be included or excluded in adjusted free cash flow to maintain
consistency of the measure. This includes: (a) the inclusion of the principal
element of lease payments; (b) the exclusion of payments of deferred or
contingent purchase consideration included within net cash from operating
activities; (c) the exclusion of interest receipts related to owner loans
within net cash from operating activities (d) the exclusion of recyclable
investments in contract acquisition costs within net cash from operating
activities; (e) the inclusion of payments and repayments related to
investments supporting the Group's insurance activities; (f) the inclusion of
finance lease income relating to sub-leases where payments on the headlease
are included in (a); (g) the exclusion of any lease incentives recorded within
operating activities.
Management believes adjusted free cash flow is a useful measure for investors
and other stakeholders as it represents the cash available to invest back into
the business to drive future growth and pay the ordinary dividend, with any
surplus being available for additional returns to shareholders. It is a key
component in measuring the ongoing viability of our business and is a key
reference point to our investment case.
Gross capital expenditure
Gross capital expenditure represents the consolidated capital expenditure of
IHG inclusive of System Fund capital investments. Gross capital expenditure is
defined as net cash from investing activities, adjusted to include contract
acquisition costs and to exclude payments and repayments related to
investments supporting the Group's insurance activities and changes in bank
accounts pledged as security. In order to demonstrate the capital outflow of
the Group, cash flow receipts such as those arising from disposals and
distributions from associates and joint ventures, and finance lease income,
are excluded. Lease incentives and similar contributions received are included
in gross capital expenditure as they directly reduce the Group's outlay. The
measure also excludes any material investments made in acquiring businesses
(including brands), including any subsequent payments of deferred or
contingent purchase consideration included within investing activities, which
represent ongoing payments for acquisitions.
Gross capital expenditure is reported as key money, maintenance, recyclable or
System Fund. Contract acquisition costs are defined as either key money or
recyclable, depending on whether they form part of other recyclable
investments, such as any difference between the face and market value of an
owner loan on inception.
This disaggregation provides useful information as it enables users to
distinguish between:
● Key money, which reflects amounts paid to owners to secure
management and franchise agreements;
● Maintenance capital expenditure, which reflects investments to
maintain our systems, corporate offices and owned & leased hotels;
● System Fund capital investments which are strategic investments to
drive growth at hotel level; and
● Recyclable investments, such as all investments in associates and
joint ventures and any loans to facilitate third-party ownership of hotel
assets, which are generally intended to be recoverable in the medium term and
are to drive growth of the Group's brands and expansion in primary markets.
Management believes gross capital expenditure is a useful measure as it
illustrates how the Group continues to invest in the business to drive growth.
It also allows for comparison year-on-year.
Net capital expenditure
Net capital expenditure provides an indicator of the capital intensity of
IHG's business model. Net capital expenditure is derived from net cash from
investing activities, which includes receipts such as those arising from
disposals and distributions from associates and joint ventures, adjusted to
include contract acquisition costs (net of repayments) and interest receipts
from owner loans, and to exclude payments and repayments related to
investments supporting the Group's insurance activities, changes in bank
accounts pledged as security, finance lease income and any material
investments made in acquiring businesses (including brands), including any
subsequent payments of deferred or contingent purchase consideration included
within investing activities which are typically non-recurring in nature.
In addition, System Fund depreciation and amortisation relating to property,
plant and equipment and intangible assets, respectively, is added back,
reducing the overall cash outflow. This reflects the way in which System
Funded capital investments are recovered from the System Fund, over the life
of the asset.
Management believes net capital expenditure is a useful measure as it
illustrates the net capital investment by IHG, after taking into account
capital recycling through asset disposal and the funding of strategic
investments by the System Fund. It provides investors and other stakeholders
with visibility of the cash flows which are allocated to long-term investments
to drive the Group's strategy.
Change in definitions to the 2024 Annual Report and Accounts
The definition of 'Adjusted interest' has been updated and prior year
reconciliations re-presented. An adjustment was previously made to remove
foreign exchange gains and losses, but these are now reported separately in
the Group Income Statement. This change does not affect total adjusted
interest.
Other changes seek to add clarity to the definitions and reconciliations by
aligning with terminology used in the Group financial statements.
Change in terminology
The descriptor 'Owned, leased and managed lease' has been renamed to 'Owned
& leased' for brevity. The definition remains unchanged and reflects
hotels operated by IHG where IHG is, or effectively acts as, the owner, with
responsibility for assets, employees and running costs. The entire revenue and
profit of the hotels are recorded in IHG's financial statements.
Revenue and operating profit non-GAAP reconciliations
Highlights for the 12 months ended 31 December
Reportable segments Revenue Operating profit
2025 2024 % 2025 2024 %
$m $m change $m $m change
Per Group income statement 5,189 4,923 5.4 1,198 1,041 15.1
System Fund and reimbursables (2,721 ) (2,611 ) 4.2 46 83 (44.6)
Operating exceptional items - - - 21 - NM(a)
_____ _____ _____ _____ _____ _____
Reportable segments 2,468 2,312 6.7 1,265 1,124 12.5
Reportable segments analysed as:
Fee business 1,897 1,774 6.9 1,231 1,085 13.5
Owned & leased 544 515 5.6 43 45 (4.4)
Insurance activities 27 23 17.4 (9 ) (6 ) 50.0
_____ _____ _____ _____ _____ _____
Reportable segments 2,468 2,312 6.7 1,265 1,124 12.5
a. Percentage change considered not meaningful, such as where a
positive balance in the latest period is comparable to a negative or zero
balance in the prior period.
Underlying revenue and underlying operating profit
Revenue Operating profit
2025 2024 % 2025 2024 %
$m $m change $m $m Change
Reportable segments (see above) 2,468 2,312 6.7 1,265 1,124 12.5
Significant liquidated damages (7 ) - NM(b) (7 ) - NM(b)
Owned & leased asset acquisition and disposal(a) (7 ) (8 ) (12.5) 6 5 20.0
Currency impact - 17 NM(b) - - -
_____ _____ _____ _____ _____ _____
Underlying revenue and underlying operating profit 2,454 2,321 5.7 1,264 1,129 12.0
a. The results of one Kimpton hotel in 2025 (being the year of lease
commencement) and one Regent hotel in 2024 (being the year of lease
expiration) are removed to determine the underlying growth, adjusted to
reflect 2025 rates.
b. Percentage change considered not meaningful, such as where a
positive balance in the latest period is comparable to a negative or zero
balance in the prior period.
Underlying fee revenue and underlying fee operating profit
Revenue Operating profit
2025 2024 % 2025 2024 %
$m $m change $m $m change
Reportable segments fee business (see above) 1,897 1,774 6.9 1,231 1,085 13.5
Significant liquidated damages (7 ) - NM(a) (7 ) - NM(a)
Currency impact - 6 NM(a) - (1 ) NM(a)
_____ _____ _____ _____ _____ _____
Underlying fee revenue and underlying fee operating profit 1,890 1,780 6.2 1,224 1,084 12.9
a. Percentage change considered not meaningful, such as where a
positive balance in the latest period is comparable to a negative or zero
balance in the prior period.
Americas
Revenue Operating profit(a)
2025 2024 % 2025 2024 %
$m $m change $m $m change
Per financial statements 1,129 1,141 (1.1) 836 828 1.0
Reportable segments analysed as:
Fee business 963 979 (1.6) 804 795 1.1
Owned & leased 166 162 2.5 32 33 (3.0)
_____ _____ _____ _____ _____ _____
1,129 1,141 (1.1) 836 828 1.0
Reportable segments (see above) 1,129 1,141 (1.1) 836 828 1.0
Significant liquidated damages (7 ) - NM(b) (7 ) - NM(b)
Currency impact - (3 ) NM(b) - (3 ) NM(b)
_____ _____ _____ _____ _____ _____
Underlying revenue and 1,122 1,138 (1.4) 829 825 0.5
underlying operating profit
Owned & leased included in the above (166 ) (162 ) 2.5 (32 ) (33 ) (3.0)
_____ _____ _____ _____ _____ _____
Underlying fee business 956 976 (2.0) 797 792 0.6
a. Before exceptional items.
b. Percentage change considered not meaningful, such as where a
positive balance in the latest period is comparable to a negative or zero
balance in the prior period.
EMEAA
Revenue Operating profit(a)
2025 2024 % 2025 2024 %
$m $m change $m $m change
Per financial statements 811 748 8.4 303 270 12.2
Reportable segments analysed as:
Fee business 433 395 9.6 292 258 13.2
Owned & leased 378 353 7.1 11 12 (8.3)
_____ _____ _____ _____ _____ _____
811 748 8.4 303 270 12.2
Reportable segments (see above) 811 748 8.4 303 270 12.2
Owned & leased acquisition and disposal(c) (7) (8) (12.5) 6 5 20.0
Currency impact - 19 NM(b) - 7 NM(b)
_____ _____ _____ _____ _____ _____
Underlying revenue and underlying operating profit 804 759 5.9 309 282 9.6
Owned & leased included in the above (371) (356) 4.2 (17) (18) (5.6)
_____ _____ _____ _____ _____ _____
Underlying fee business 433 403 7.4 292 264 10.6
a. Before exceptional items.
b. Percentage change considered not meaningful, such as where a
positive balance in the latest period is comparable to a negative or zero
balance in the prior period.
c. The results of one Kimpton hotel in 2025 (being the year of lease
commencement) and one Regent hotel in 2024 (being the year of lease
expiration) are removed to determine the underlying growth, adjusted to
reflect 2025 rates.
Greater China
Revenue Operating profit(a)
2025 2024 % 2025 2024 %
$m $m change $m $m change
Per financial statements 165 161 2.5 99 98 1.0
Reportable segments analysed as:
Fee business 165 161 2.5 99 98 1.0
_____ _____ _____ _____ _____ _____
165 161 2.5 99 98 1.0
Reportable segments (see above) 165 161 2.5 99 98 1.0
_____ _____ _____ _____ _____ _____
Underlying revenue and underlying operating profit 165 161 2.5 99 98 1.0
a. Before exceptional items.
Fee margin reconciliation
12 months ended 31 December 2025
Americas EMEAA Greater China Central(a) Total
Revenue $m
Reportable segments analysed as fee business (see above) 963 433 165 336 1,897
Significant liquidated damages (7) - - - (7)
_____ _____ _____ _____ _____
956 433 165 336 1,890
Operating profit $m
Reportable segments analysed as fee business (see above) 804 292 99 36 1,231
Significant liquidated damages (7) - - - (7)
_____ _____ _____ _____ _____
797 292 99 36 1,224
Fee margin % 83.4% 67.4% 60.0% 10.7% 64.8%
12 months ended 31 December 2024
Americas EMEAA Greater China Central(a) Total
Revenue $m
Reportable segments analysed as fee business (see above) 979 395 161 239 1,774
_____ _____ _____ _____ _____
979 395 161 239 1,774
Operating profit $m
Reportable segments analysed as fee business (see above) 795 258 98 (66) 1,085
_____ _____ _____ _____ _____
795 258 98 (66) 1,085
Fee margin % 81.2% 65.3% 60.9% (27.6)% 61.2%
a. Central fee business revenue and operating profit as per notes 2
and 3 to the Financial Statements, and excludes revenue and operating loss
from insurance activities of $27m and $9m, respectively (2024: $23m and $6m).
Net and gross capital expenditure reconciliation
12 months ended 31 December
2025 2024
$m $m
Net cash from investing activities (190) (99)
Adjusted for:
Contract acquisition costs, net of repayments (179) (237)
System Fund depreciation and amortisation(a) 78 82
Payment of deferred purchase consideration - 10
Repayments related to investments supporting the Group's insurance activities (3) (5)
Changes in bank accounts pledged as security (7) -
Purchase of brands 120 -
Finance lease receipts (4) (4)
_____ _____
Net capital expenditure (185) (253)
Further adjusted for:
Repayment of contract acquisition costs (2) -
Other disposals and repayments (4) (15)
System Fund depreciation and amortisation(a) (78) (82)
_____ _____
Gross capital expenditure (269) (350)
Analysed as: Gross Repaid Net Gross Repaid Net
Key money contract acquisition costs (179) 2 (177) (206) - (206)
Maintenance (31) - (31) (31) - (31)
Recyclable capital expenditure
Recyclable contract acquisition costs (2) - (2) (31) - (31)
Other recyclable investments (14) 4 (10) (37) 15 (22)
Capital expenditure: System Fund investments (43) 78 35 (45) 82 37
_____ _____ _____ _____ _____ _____
Total capital expenditure (269) 84 (185) (350) 97 (253)
a. Excludes depreciation of right-of-use assets
Adjusted free cash flow reconciliation
12 months ended
31 December
2025 2024
$m $m
Net cash from operating activities 898 724
Adjusted for:
Purchase of shares by employee share trusts (10) (27)
Gross maintenance capital expenditure (31) (31)
Cash flows relating to exceptional items(a) 57 (8)
Principal element of lease payments (30) (46)
Deferred purchase consideration - 3
Recyclable contract acquisition costs 2 31
Repayments related to investments supporting the Group's insurance activities 3 5
Finance lease receipts 4 4
_____ _____
Adjusted free cash flow 893 655
_____ _____
a. In 2025, includes $34m of exceptional tax paid.
Adjusted interest reconciliation
12 months ended
31 December
2025 2024
Re-presented(a)
$m $m
Net financial expenses
Financial income 49 63
Financial expenses (202) (178)
_____ _____
(153) (115)
Adjusted for:
Interest attributable to the System Fund (47) (50)
_____ _____
(47) (50)
_____ _____
Adjusted interest (200) (165)
_____ _____
a. An adjustment was previously made to remove foreign exchange gains
and losses presented within 'financial expenses'. These are now reported
separately in the Group Income Statement. This change does not affect the
total adjusted interest.
Adjusted tax and tax rate reconciliation
2025 2024
Profit before tax Tax rate Profit before tax Tax rate
Tax Tax
$m $m $m $m
Group income statement 1,074 (315) 29.3 % 897 (269) 30.0 %
Adjusted for:
Exceptional items 21 16 - -
Foreign exchange (gains)/losses (37) - 25 3
System Fund 46 9 83 4
Interest attributable to the System Fund (47) - (50) -
Remeasurement losses on contingent purchase consideration 8 - 4 -
_____ _____ _____ _____
Adjusted tax and tax rate 1,065 (290) 27.2 % 959 (262) 27.3 %
Adjusted earnings per ordinary share reconciliation
12 months ended 31 December
2025 2024
$m $m
Profit available for equity holders 758 628
Adjusting items:
System Fund and reimbursable result 46 83
Interest attributable to the System Fund (47) (50)
Operating exceptional items 21 -
Remeasurement losses on contingent purchase consideration 8 4
Foreign exchange (gains)/losses (37) 25
Tax attributable to the System Fund 9 4
Tax on foreign exchange (gains)/losses - 3
Tax exceptional items 16 -
_____ _____
Adjusted earnings 774 697
Basic weighted average number of ordinary shares (millions) 154.4 161.2
Adjusted earnings per ordinary share (cents) 501.3 432.4
INTERCONTINENTAL HOTELS GROUP PLC
GROUP INCOME STATEMENT
For the year ended 31 December 2025
2025 2024
Year ended Year ended
31 December 31 December
Re-presented(a)
$m $m
Revenue from fee business 1,897 1,774
Revenue from owned & leased hotels 544 515
Revenue from insurance activities 27 23
System Fund and reimbursable revenues 2,721 2,611
_____ _____
Total revenue (notes 3 and 4) 5,189 4,923
Cost of sales (764) (745)
System Fund and reimbursable expenses (2,767) (2,694)
Administrative expenses (354) (359)
Insurance expenses (36) (29)
Share of profits of associates and joint ventures 6 10
Other operating income 14 10
Depreciation and amortisation (67) (65)
Impairment loss on financial assets (21) (10)
Other net impairment charges (2) -
_____ _____
Operating profit (note 3) 1,198 1,041
Operating profit analysed as:
Operating profit before System Fund, reimbursables and exceptional items 1,265 1,124
System Fund and reimbursable result (46) (83)
Operating exceptional items (note 5) (21) -
_____ _____
1,198 1,041
Financial income 49 63
Financial expenses (202) (178)
Foreign exchange gains/(losses) 37 (25)
Remeasurement of contingent purchase consideration (8) (4)
_____ _____
Profit before tax 1,074 897
Tax (note 6) (315) (269)
_____ _____
Profit for the year 759 628
_____ _____
Attributable to: ¯¯¯¯ ¯¯¯¯
Equity holders of the parent 758 628
Non-controlling interest 1 -
_____ _____
759 628
_____ _____
Earnings per ordinary share (note 8) ¯¯¯¯ ¯¯¯¯
Basic 490.9¢ 389.6¢
Diluted 486.5¢ 385.3¢
a. In 2025, foreign exchange gains/(losses) have been presented on a
separate line. The 2024 amount was previously presented within 'Financial
expenses'.
INTERCONTINENTAL HOTELS GROUP PLC
GROUP STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2025
2025 2024
Year ended Year ended
31 December 31 December
$m $m
Profit for the year 759 628
Other comprehensive (loss)/income
Items that may be subsequently reclassified to profit or loss:
Gains/(losses) on cash flows hedges, including related tax credit of $14m 140 (124)
(2024: $11m charge)
Gains/(losses) on net investment hedges 35 (7)
Costs of hedging 4 (11)
Hedging (gains)/losses reclassified to financial expenses (186) 165
Exchange (losses)/gains on retranslation of foreign operations, including (91) 4
related tax charge of $2m (2024: $2m)
_____ _____
(98) 27
Items that will not be reclassified to profit or loss:
(Losses)/gains on equity instruments classified as fair value through other (1) 2
comprehensive income
Remeasurement gains on defined benefit plans - 4
_____ _____
(1) 6
_____ _____
Total other comprehensive (loss)/income for the year (99) 33
_____ _____
Total comprehensive income for the year 660 661
_____ _____
¯¯¯¯ ¯¯¯¯
Attributable to:
Equity holders of the parent 659 661
Non-controlling interest 1 -
_____ _____
660 661
_____ _____
¯¯¯¯ ¯¯¯¯
INTERCONTINENTAL HOTELS GROUP PLC
GROUP STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2025
Year ended 31 December 2025
Equity share capital Other reserves* Retained earnings Non-controlling interest Total equity
$m $m $m $m $m
At beginning of the year 137 (2,483) 34 4 (2,308)
Total comprehensive income for the year - (99) 758 1 660
Repurchase of shares, including taxes and transaction costs (2) 2 (882) - (882)
Purchase of own shares by employee share trusts - (15) - - (15)
Transfer of treasury shares to employee share trusts - (34) 34 - -
Release of own shares by employee share trusts - 55 (55) - -
Equity-settled share-based cost - - 67 - 67
Tax related to share schemes - - 9 - 9
Equity dividends paid - - (270) - (270)
Exchange and other adjustments 10 (10) 3 - 3
_____ _____ _____ _____ _____
At end of the year 145 (2,584) (302) 5 (2,736)
_____ _____ _____ _____ _____
¯¯¯¯ ¯¯¯¯ ¯¯¯¯ ¯¯¯¯ ¯¯¯¯
Year ended 31 December 2024
Equity share capital Other reserves* Retained earnings Non-controlling interest Total equity
$m $m $m $m $m
At beginning of the year 141 (2,487) 396 4 (1,946)
Total comprehensive income for the year - 29 632 - 661
Repurchase of shares, including taxes and transaction costs (2) 2 (812) - (812)
Purchase of own shares by employee share trusts - (27) - - (27)
Transfer of treasury shares to employee share trusts - (33) 33 - -
Release of own shares by employee share trusts - 31 (31) - -
Equity-settled share-based cost - - 60 - 60
Tax related to share schemes - - 15 - 15
Equity dividends paid - - (259) - (259)
Exchange and other adjustments (2) 2 - - -
_____ _____ _____ _____ _____
At end of the year 137 (2,483) 34 4 (2,308)
_____ _____ _____ _____ _____
¯¯¯¯ ¯¯¯¯ ¯¯¯¯ ¯¯¯¯ ¯¯¯¯
*Other reserves comprise the capital redemption reserve, shares held by
employee share trusts, other reserves, fair value reserve, cash flow hedge
reserves and currency translation reserve.
All items within total comprehensive income are shown net of tax.
INTERCONTINENTAL HOTELS GROUP PLC
GROUP STATEMENT OF FINANCIAL POSITION
31 December 2025
2025 2024
31 December 31 December
$m $m
ASSETS
Goodwill and other intangible assets 1,155 1,042
Property, plant and equipment 148 146
Right-of-use assets 269 276
Investment in associates and joint ventures 55 51
Retirement benefit assets 3 3
Other financial assets 211 212
Derivative financial instruments 120 4
Deferred compensation plan investments 316 286
Non-current other receivables 19 35
Deferred tax assets 146 122
Contract costs 103 90
Contract assets 751 612
_____ _____
Total non-current assets 3,296 2,879
_____ _____
Inventories 5 4
Trade and other receivables 833 785
Current tax receivable 27 22
Other financial assets 3 7
Cash and cash equivalents 1,129 1,008
Contract costs 5 5
Contract assets 47 38
_____ _____
Total current assets 2,049 1,869
_____ _____
Total assets 5,345 4,748
_____ _____
LIABILITIES ¯¯¯¯ ¯¯¯¯
Loans and other borrowings (478) (398)
Lease liabilities (28) (26)
Trade and other payables (676) (650)
Deferred revenue (829) (766)
Provisions (21) (22)
Insurance liabilities (16) (14)
Tax payable (52) (52)
_____ _____
Total current liabilities (2,100) (1,928)
_____ _____
Loans and other borrowings (3,723) (2,876)
Lease liabilities (378) (388)
Derivative financial instruments (12) (78)
Retirement benefit obligations (69) (68)
Deferred compensation plan liabilities (316) (286)
Trade and other payables (69) (78)
Deferred revenue (1,340) (1,294)
Provisions (22) (17)
Insurance liabilities (29) (25)
Deferred tax liabilities (17) (18)
Tax payable (6) -
_____ _____
Total non-current liabilities (5,981) (5,128)
_____ _____
Total liabilities (8,081) (7,056)
_____ _____
¯¯¯¯ ¯¯¯¯
Net liabilities (2,736) (2,308)
_____ _____
EQUITY ¯¯¯¯ ¯¯¯¯
IHG shareholders' equity (2,741) (2,312)
Non-controlling interest 5 4
_____ _____
Total equity (2,736) (2,308)
_____ _____
¯¯¯¯ ¯¯¯¯
INTERCONTINENTAL HOTELS GROUP PLC
GROUP STATEMENT OF CASH FLOWS
For the year ended 31 December 2025
2025 2024
Year ended Year ended
31 December 31 December
$m $m
Profit for the year 759 628
Adjustments reconciling profit for the year to cash flow from operations (note 602 521
9)
_____ _____
Cash flow from operations 1,361 1,149
Interest paid (202) (170)
Interest received 46 57
Deferred purchase consideration paid - (3)
Tax paid (note 6) (307) (309)
_____ _____
Net cash from operating activities 898 724
_____ _____
Cash flow from investing activities
Purchase of property, plant and equipment (28) (29)
Purchase of brands (120) -
Purchase of other intangible assets (49) (49)
Investment in associates and joint ventures (11) (6)
Investment in other financial assets (3) (32)
Deferred purchase consideration paid - (10)
Disposal of property, plant and equipment - 9
Repayments of other financial assets 14 11
Finance lease receipts 4 4
Other investing cash flows 3 3
_____ _____
Net cash from investing activities (190) (99)
_____ _____
Cash flow from financing activities
Repurchase of shares, including taxes and transaction costs (897) (804)
Purchase of own shares by employee share trusts (10) (27)
Dividends paid to shareholders (note 7) (270) (259)
Issue of long-term bonds, including effect of currency swaps (note 11) 990 834
Repayment of long-term bonds (note 11) (403) (547)
Settlement of currency swaps (note 11) - (45)
Drawdown of Revolving Credit Facility (note 11) 75 -
Repayment of Revolving Credit Facility (note 11) (75) -
Principal element of lease payments (note 11) (30) (46)
Other financing cash flows 6 -
_____ _____
Net cash from financing activities (614) (894)
_____ _____
Net movement in cash and cash equivalents, net of overdrafts, 94 (269)
in the year
Cash and cash equivalents, net of overdrafts, at beginning of the year 991 1,278
Exchange rate effects 41 (18)
_____ _____
Cash and cash equivalents, net of overdrafts, at end of the year 1,126 991
_____ _____
¯¯¯¯ ¯¯¯¯
INTERCONTINENTAL HOTELS GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS
1. Basis of preparation
The preliminary consolidated financial statements of InterContinental Hotels
Group PLC (the 'Group' or 'IHG') for the year ended 31 December 2025 have
been prepared in accordance with UK-adopted international accounting standards
and with applicable law and regulations, including the Companies Act 2006, and
with International Financial Reporting Standards ('IFRS Accounting Standards')
as issued by the International Accounting Standards Board ('IASB'). The
preliminary statement of results shown in this announcement does not represent
the statutory accounts of the Group and its subsidiaries within the meaning of
Section 435 of the Companies Act 2006.
The Group financial statements for the year ended 31 December 2025 were
approved by the Board on 16 February 2026. The auditor, PricewaterhouseCoopers
LLP, has given an unqualified report in respect of those Group financial
statements with no reference to matters to which the auditor drew attention by
way of emphasis and no statement under s498(2) or s498(3) of the Companies Act
2006. The Group financial statements for the year ended 31 December 2025 will
be delivered to the Registrar of Companies in due course.
Going concern
The period to 30 June 2027 has been used to complete the going concern
assessment.
In adopting the going concern basis for preparing the Group financial
statements, the Directors have considered a 'Base Case' scenario, as prepared
by management, which assumes Global RevPAR in 2026 and 2027 continues to grow
in line with market expectations. The assumptions applied in the Base Case
scenario are consistent with those used for Group planning purposes,
impairment testing and for assessing recoverability of deferred tax assets.
In addition, the Directors have reviewed a 'Severe Downside Case' reflecting a
severe but plausible scenario equivalent to the market conditions experienced
during the 2008/2009 global financial crisis, in which RevPAR declines by 17%
in 2026 before recovering by 5% in 2027. A 'Combined Scenario' has also been
considered, modelling the Severe Downside Case in conjunction with a
significant cash flow impact from a one-off event, such as a cybersecurity
incident.
Principal risks that could materially affect RevPAR are captured within the
Severe Downside Case, while other risks with the potential to cause a
substantial one-off impact on cash flow - such as a cybersecurity event - are
addressed in the Combined Scenario. Climate risks are not considered to
have a significant impact over the period of assessment.
The Group enters the assessment period with substantial liquidity at 31
December 2025 of $2,599m, comprising $1,099m of cash and cash equivalents (net
of overdrafts and restricted cash) and $1,500m of undrawn bank facility. The
Group's revolving credit facility was refinanced in December 2025 with a new
$1,500m facility that matures in 2030. There are no financial covenants in the
new facility. See note 10 for additional information. In September 2025 the
Group issued a €850m bond. There are two bond maturities in the period under
consideration, £350m in August 2026 and €500m in May 2027. No new funding
is assumed in the period under review.
Under the Base Case and Severe Downside Case there is significant liquidity
available to absorb multiple additional risks and uncertainties. Under the
Combined Scenario there is a lower level of liquidity, however, the Directors
also reviewed a number of actions that could be taken, if required, to
reduce discretionary spend, creating substantial additional liquidity.
The Directors reviewed a reverse stress test scenario to determine what other
events could create a scenario which would exhaust the liquidity in the
Combined Scenario. The Directors concluded that it was very unlikely that
a single risk or combination of the risks considered could create
the sustained impact required.
Having reviewed these scenarios, the Directors have a reasonable expectation
that the Group has sufficient resources to continue operating until at least
30 June 2027. Accordingly, they continue to adopt the going concern basis in
preparing the financial statements.
2. Exchange rates
2025 2025 2024 2024
Average Closing Average Closing
$1 equivalent
Sterling £0.76 £0.74 £0.78 £0.80
Euro €0.89 €0.85 €0.92 €0.96
3. Segmental information
Revenue 2025 2024
Year ended 31 December 2025 $m $m
Americas 1,129 1,141
EMEAA 811 748
Greater China 165 161
Central 363 262
_____ _____
Revenue from reportable segments 2,468 2,312
System Fund and reimbursable revenues 2,721 2,611
_____ _____
Total revenue 5,189 4,923
_____ _____
¯¯¯¯ ¯¯¯¯
Profit 2025 2024
Year ended 31 December 2025 $m $m
Americas 836 828
EMEAA 303 270
Greater China 99 98
Central 27 (72)
_____ _____
Operating profit from reportable segments 1,265 1,124
System Fund and reimbursable result (46) (83)
Operating exceptional items (note 5) (21) -
_____ _____
Operating profit 1,198 1,041
Net financial expenses (153) (115)
Foreign exchange gains/(losses) 37 (25)
Remeasurement of contingent purchase consideration (8) (4)
_____ _____
Profit before tax 1,074 897
_____ _____
¯¯¯¯ ¯¯¯¯
4. Revenue
Year ended 31 December 2025
Americas EMEAA Greater China Central Group
$m $m $m $m $m
Franchise and base management fees 943 299 129 - 1,371
Incentive management fees 20 134 36 - 190
Central revenue - - - 336 336
_____ _____ _____ _____ _____
Revenue from fee business 963 433 165 336 1,897
Revenue from owned & leased hotels 166 378 - - 544
Revenue from insurance activities - - - 27 27
_____ _____ _____ _____ _____
1,129 811 165 363 2,468
System Fund revenues 1,717
Reimbursable revenues 1,004
_____
Total revenue 5,189
_____
¯¯¯¯
Central revenue arises principally from technology fee income and ancillary
revenues including co-brand licensing fees and, following execution of a
revised agreement with the IHG Owners Association in 2024, a portion of
revenue from the consumption of certain IHG One Rewards points. The agreed
change initially applied to 50% of proceeds from points sold to consumers from
1 January 2024 and increased to 100% from 1 January 2025. In line with the
Group's accounting policy, revenue from the sale of points is deferred until
the future benefit has been consumed by the member.
Year ended 31 December 2024
Americas EMEAA Greater China Central Group
$m $m $m $m $m
Franchise and base management fees 958 277 122 - 1,357
Incentive management fees 21 118 39 - 178
Central revenue - - - 239 239
_____ _____ _____ _____ _____
Revenue from fee business 979 395 161 239 1,774
Revenue from owned & leased hotels 162 353 - - 515
Revenue from insurance activities - - - 23 23
_____ _____ _____ _____ _____
1,141 748 161 262 2,312
System Fund revenues 1,611
Reimbursable revenues 1,000
_____
Total revenue 4,923
_____
¯¯¯¯
5. Operating exceptional items
2025 2024
$m $m
Global efficiency programme (12) -
Commercial litigation and disputes (9) (12)
Impairment reversal on financial assets - 6
Impairment reversal on property, plant and equipment - 3
Impairment reversal on contract assets - 3
_____ _____
Operating exceptional items (21) -
_____ _____
¯¯¯¯ ¯¯¯¯
Operating exceptional items analysed as:
Americas (2) 4
EMEAA (13) (4)
Central (6) -
_____ _____
(21) -
_____ _____
¯¯¯¯ ¯¯¯¯
Global efficiency programme
Comprises costs incurred in the ongoing delivery of a global efficiency
programme, designed to achieve incremental cost base efficiencies and
effectiveness. The costs, included within 'Cost of sales' and 'Administrative
expenses' in the Group income statement, are presented as exceptional because
they relate to a comprehensive programme and therefore do not reflect normal,
ongoing costs of the business. An additional $10m was charged to the System
Fund for the year to 31 December 2025. Further exceptional costs are expected
to be incurred to complete the programme in 2026.
Commercial litigation and disputes
From time to time, the Group is subject to legal proceedings the ultimate
outcome of each being always subject to many uncertainties inherent in
litigation. The charge relates to the EMEAA region and includes legal costs.
The costs, included within 'Administrative expenses' in the Group income
statement, are presented as exceptional reflecting the quantum of the costs
and nature of the disputes.
Impairment reversal on financial assets
The 2024 reversal of $6m related to impairments originally recorded in 2020.
These reversals, included within 'Impairment loss on financial assets' in the
Group income statement, were presented as exceptional for consistency with the
treatment of the corresponding impairments.
Impairment reversal on property, plant and equipment
The 2024 reversal of $3m related to one hotel in the UK portfolio. The
original impairment was recorded in 2020. The reversal, included within 'Other
net impairment charges' in the Group income statement, was presented as
exceptional for consistency with the treatment of the corresponding
impairment.
Impairment reversal on contract assets
The 2024 reversal of $3m related to an impairment originally recorded in 2020.
The reversal, included within 'Other net impairment charges' in the Group
income statement, was presented as exceptional for consistency with the
treatment of the corresponding impairment.
6. Tax
Tax on profit for the year
2025 2024
$m $m
Current tax 320 316
Deferred tax (5) (47)
_____ _____
Tax charge 315 269
_____ _____
Further analysed as: ¯¯¯¯ ¯¯¯¯
UK tax 35 33
Foreign tax 280 236
_____ _____
315 269
_____ _____
¯¯¯¯ ¯¯¯¯
The tax charge includes the following exceptional items:
Tax on operating exceptional items (note 5) 5 -
Exceptional tax charge (21) -
_____ _____
Tax exceptional items (16) -
_____ _____
¯¯¯¯ ¯¯¯¯
Exceptional tax
The exceptional tax charge comprises a $34m current tax charge and a $34m
deferred tax credit, both in respect of tax that arose on the acquisition of
Holiday Inn in 1990, and a $21m deferred tax charge following the completion
of an intra-group restructuring transaction, which otherwise has had no impact
on the consolidated financial statements. These are presented as exceptional
due to their size and non-recurring nature.
Tax paid
Total tax paid (net of refunds) of $307m (2024: $309m) includes $34m in 2025
relating to the settlement of the tax liability noted within exceptional tax
above. The payment is classified as an exceptional cash flow due to its size
and nature.
Deferred tax
The deferred tax asset of $146m (2024: $122m) comprises $92m (2024: $99m) in
the UK and $54m (2024: $23m) in respect of other territories. The deferred tax
asset has been recognised based upon forecasts consistent with those used in
the going concern assessment.
7. Dividends and shareholder returns
2025 2024
cents per share $m cents per share
$m
Paid during the year:
Final (declared for previous year) 114.4 180 104.0 172
Interim 58.6 90 53.2 87
_____ _____ _____ _____
173.0 270 157.2 259
_____ _____ _____ _____
¯¯¯¯ ¯¯¯¯ ¯¯¯¯ ¯¯¯¯
The final dividend in respect of 2025 of 125.9¢ per ordinary share (amounting
to approximately $190m) is proposed for approval at the AGM on 7 May 2026.
The final dividend is first determined in US dollars and the sterling amount
will be announced on 27 April 2026 using the average of the daily exchange
rates for the three working days commencing 22 April 2026.
In the year ended 31 December 2025, 7.6m shares were repurchased (and
subsequently cancelled) for a total cash cost of $897m (including taxes and
transaction costs). Total consideration of $882m includes a reversal of $15m
of taxes previously provided for in respect of the 2024 and 2023 buyback
programmes. These taxes are no longer expected to be payable, following
legislative changes.
In the year ended 31 December 2024, 7.5m shares were repurchased for total
consideration of $812m (including taxes and transaction costs) and
subsequently cancelled.
For each of the share buyback programmes undertaken, authority was given to
the Company at the respective AGM prior to commencement of the buyback.
In February 2026, the Board approved a further $950m share buyback programme
to be completed by the end of 2026. A resolution to renew the authority to
repurchase shares will be put to shareholders at the AGM on 7 May 2026.
8. Earnings per ordinary share
2025 2024
Basic earnings per ordinary share
Profit available for equity holders ($m) 758 628
Basic weighted average number of ordinary shares (millions) 154.4 161.2
Basic earnings per ordinary share (cents) 490.9 389.6
_____ _____
¯¯¯¯ ¯¯¯¯
Diluted earnings per ordinary share
Profit available for equity holders ($m) 758 628
Diluted weighted average number of ordinary shares (millions) 155.8 163.0
Diluted earnings per ordinary share (cents) 486.5 385.3
_____ _____
¯¯¯¯ ¯¯¯¯
Diluted weighted average number of ordinary shares is calculated as:
2025 2024
millions millions
Basic weighted average number of ordinary shares 154.4 161.2
Dilutive potential ordinary shares 1.4 1.8
_____ _____
155.8 163.0
_____ _____
¯¯¯¯ ¯¯¯¯
9. Reconciliation of profit for the year to cash flow from operations
2025 2024
$m $m
Profit for the year 759 628
Adjustments for:
Net financial expenses 153 115
Foreign exchange (gains)/losses (37) 25
Remeasurement of contingent purchase consideration 8 4
Income tax charge 315 269
Operating profit adjustments:
Impairment loss on financial assets 21 10
Other net impairment charges 2 -
Other operating exceptional items 21 12
Depreciation and amortisation 67 65
_____ _____
111 87
Contract assets deduction in revenue 52 43
Share-based payments cost 47 44
Share of profits of associates and joint ventures (6) (10)
_____ _____
93 77
System Fund adjustments:
Depreciation and amortisation 79 80
Impairment loss on financial assets 19 9
Other impairment charges - 3
Share-based payments cost 25 23
Share of losses of associates 2 2
_____ _____
125 117
Working capital and other adjustments:
Increase in deferred revenue 107 214
Changes in working capital (76) (151)
Other net adjustments 5 (7)
_____ _____
36 56
Cash flows relating to operating exceptional items (23) 8
Contract acquisition costs, net of repayments (179) (237)
_____ _____
Total adjustments 602 521
_____ _____
Cash flow from operations 1,361 1,149
_____ _____
¯¯¯¯ ¯¯¯¯
In 2025, increase in deferred revenue includes $37m (2024: $100m) of initial
upfront payments received in relation to US co-brand credit card agreements
which will be recognised over the term of those agreements.
Other net adjustments includes dividends received from associates and joint
ventures of $6m (2024: $7m).
10. Net debt
2025 2024
$m $m
Cash and cash equivalents 1,129 1,008
Loans and other borrowings - current (478) (398)
Loans and other borrowings - non-current (3,723) (2,876)
Lease liabilities - current (28) (26)
Lease liabilities - non-current (378) (388)
Principal amounts payable on maturity of derivative financial instruments 145 (102)
_____ _____
Net debt* (3,333) (2,782)
_____ _____
¯¯¯¯ ¯¯¯¯
* See 'Use of key performance measures and Non-GAAP measures'.
In the Group statement of cash flows, cash and cash equivalents is presented
net of $3m bank overdrafts (2024: $17m). Cash and cash equivalents includes
$27m (2024: $22m) with restrictions on use.
Revolving Credit Facility (RCF)
In December 2025, the Group entered into a new $1,500m syndicated RCF which
matures in 2030.The previous facility of $1,350m was cancelled. A variable
rate of interest is payable on amounts drawn. There were no amounts drawn as
at 31 December 2025 nor 31 December 2024. The maximum amount drawn during
the period was $75m (2024: $nil).
11. Movement in net debt
2025 2024
$m $m
Net increase/(decrease) in cash and cash equivalents, net of overdrafts 94 (269)
Add back financing cash flows in respect of other components of net debt:
Principal element of lease payments 30 46
Issue of long-term bonds (990) (834)
Repayment of long-term bonds 403 547
Settlement of currency swaps - 45
Drawdown of Revolving Credit Facility (75) -
Repayment of Revolving Credit Facility 75 -
_____ _____
(557) (196)
_____ _____
Increase in net debt arising from cash flows (463) (465)
Other movements:
Lease liabilities (19) (36)
Increase in accrued interest (2) (6)
Exchange and other adjustments (67) (3)
_____ _____
(88) (45)
_____ _____
Increase in net debt (551) (510)
Net debt at beginning of the year (2,782) (2,272)
_____ _____
Net debt at end of the year (3,333) (2,782)
_____ _____
¯¯¯¯ ¯¯¯¯
12. Ruby brand acquisition
During the year, the Group completed the acquisition of the Ruby brand and
related intellectual property (together, the Ruby brand). The transaction is
accounted for as an asset acquisition.
The Ruby brand has been recognised as an indefinite lived intangible asset at
a cost of €129m ($136m), comprising initial purchase consideration, the fair
value of contingent purchase consideration at the acquisition date and
attributable costs.
The contingent purchase consideration relates to future payments to
incentivise growth payable in 2030 and/or 2035 totalling up to €181m
($213m), contingent on the number of Ruby branded rooms operated by the seller
at the end of the preceding year. The contingent purchase consideration
liability, included within non-current trade and other payables, is remeasured
at each reporting date with changes in value recognised in the Group income
statement.
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