REG - Interco. Hotels Grp - Half-year Report
07/08/2025 07:00
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RNS Number : 3164U InterContinental Hotels Group PLC 07 August 2025
InterContinental Hotels Group PLC
Half Year Results to 30 June 2025
7 August 2025
Strong performance with operating profit from reportable segments(1) +13% and
Adjusted EPS(1) +19%; record openings; on track to return over $1.1bn to
shareholders; confident in long-term growth drivers
6 months ended 30 June 2025 2024 % change Underlying(1)
%change
Results from reportable segments(1):
Revenue(1) $1,175m $1,108m +6% +5%
Revenue from fee business(1) $908m $850m +7% +6%
Operating profit(1) $604m $535m +13% +12%
Fee margin(1) 64.7% 60.8% +3.9%pts
Adjusted EPS(1) 242.5¢ 203.9¢ +19%
IFRS results:
Total revenue $2,519m $2,322m +8%
Operating profit $623m $525m +19%
Basic EPS 300.1¢ 212.5¢ +41%
Interim dividend per share 58.6¢ 53.2¢ +10%
Net debt(1) $3,361m $2,782m +21%
Results from reportable segments(1):
Revenue(1)
$1,175m
$1,108m
+6%
+5%
Revenue from fee business(1)
$908m
$850m
+7%
+6%
Operating profit(1)
$604m
$535m
+13%
+12%
Fee margin(1)
64.7%
60.8%
+3.9%pts
Adjusted EPS(1)
242.5¢
203.9¢
+19%
IFRS results:
Total revenue
$2,519m
$2,322m
+8%
Operating profit
$623m
$525m
+19%
Basic EPS
300.1¢
212.5¢
+41%
Interim dividend per share
58.6¢
53.2¢
+10%
Net debt(1)
$3,361m
$2,782m
+21%
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 Interim Financial Statements. Fee margin in 2024 re-presented from
60.6% to 60.8% to reflect a change in the threshold for liquidated damages
classified as significant.
Trading and revenue
● H1 Global RevPAR(1) +1.8%, with Americas +1.4%, EMEAA +4.1% and
Greater China -3.2%
● Average daily rate +1.4%, occupancy +0.3%pts
● Total gross revenue(1) $16.7bn, +4%
System size and pipeline
● Gross system growth +7.7% YOY and net system growth of +5.4% YOY
adjusting for the impact of removing rooms previously affiliated with The
Venetian Resort Las Vegas (net growth of +4.6% YOY on a reported basis)
● Opened 31.4k rooms (207 hotels) in H1, a record level, and up +75%
YOY
● Global estate of 999k rooms (6,760 hotels) at 30 June; milestone of
one million rooms reached since 30 June
● Signed 51.2k rooms (324 hotels) in H1, +15% YOY excluding Ruby
acquisition in 2025 and NOVUM signings in 2024
● Global pipeline of 338k rooms (2,276 hotels) at 30 June, +4% YTD,
and represents 34% of current system size
Margin and profit
● Fee margin(1) 64.7%, up +3.9%pts, driven by positive operating
leverage and step-ups in ancillary fee streams
● Operating profit from reportable segments(1) of $604m, up +13%,
includes a $2m adverse currency impact
● IFRS operating profit of $623m includes System Fund and
reimbursables result of $31m profit (2024: $10m loss) and $12m exceptional
costs (2024: $nil)
● Adjusted EPS(1) of 242.5¢, up +19%, includes adjusted interest
expense(1) of $91m (2024: $79m), an adjusted tax(1) rate of 26% (2024: 27%)
and a 4.3% reduction in the basic weighted average number of ordinary shares
Cash flow and net debt
● Net cash from operating activities of $312m (2024: $162m) and
adjusted free cash flow(1) of $302m (2024: $131m), with the increase partly
due to the prior year's higher spend in the System Fund
● Net debt(1) increase of $579m in H1, driven by $605m of shareholder
returns through dividend payments and share buybacks; $120m acquisition spend;
$96m foreign exchange adverse impact on net debt
● Trailing 12-month adjusted EBITDA(1) of $1,259m, +10% YOY; net
debt:adjusted EBITDA ratio of 2.67x
Shareholder returns
● $900m share buyback programme for 2025, 47% completed as at 30 June;
interim dividend +10% to 58.6¢
● On track to return over $1.1bn to shareholders in 2025 though share
repurchases and dividend payments
Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts, said:
"Our momentum continued in the first half of 2025, with further achievements
in accelerating the growth of our brands, expanding in key geographies,
strengthening hotel owner returns, driving ancillary fee streams, delivering
cost efficiencies, and returning surplus capital to shareholders. With thanks
to our teams around the world, we're pleased to report that these achievements
propelled our adjusted EPS growth to +19%.
We opened a record number of rooms in the half through the addition of 207
hotels, and signed another 324 properties into our pipeline as owner demand
for our world class brands continues to increase. In recent weeks, we're very
proud to have exceeded the milestone of one million open rooms across our
global portfolio of over 6,700 hotels. As we look to the future, our pipeline
of more than 2,200 hotels is equivalent to further system size growth of +34%.
We remain on track to meet full year consensus profit and earnings
expectations. While some shorter term macro-economic uncertainties remain,
many are subsiding, and we are confident in the ongoing successful delivery of
our growth algorithm, driven by the strength of IHG's enterprise platform and
our ability to further capitalise on our scale, leading positions and the
attractive long-term demand drivers for our markets."
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)
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,
Michael Glover, Chief Financial Officer, and Jolie Fleming, Chief Product
& Technology Officer, will be available from 7:00am (London time) today, 7
August 2025, 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 use the following dial-in details for a Q&A facility:
UK: 020 3936 2999
US: 646 233 4753
Other international: click here
Passcode: 033819
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 145 million members, IHG has more
than 6,700 open hotels in over 100 countries, and a development pipeline of
more than 2,200 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 385,000 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 was +1.8% in H1 2025
(Q1 +3.3%, Q2 +0.3%).
In the Americas, H1 RevPAR grew +1.4% (Q1 +3.5%, Q2 -0.5%), with occupancy
+0.1%pts and rate +1.3%. US RevPAR grew +1.2% in H1, with growth of +3.5% in
Q1 moving to a decline of -0.9% in Q2. This move included the adverse impact
from the shift in timing of Easter between March and April, and a broader
impact in Q2 on certain types of business and leisure travel in light of
macro-economic developments. Rooms revenue for the region on a comparable
hotel basis in H1 was strongest for Business at +3%, with Groups +1% and
Leisure flat on 2024 levels.
For EMEAA, H1 RevPAR grew +4.1%, with occupancy +0.8%pts and rate +2.9%.
Strong RevPAR growth of +5.0% in Q1 eased to +3.0% in Q2, in part due to fewer
travel-related international events compared to the prior year. By major
geographic markets, H1 RevPAR was Continental Europe +5.1%, the UK -0.8%,
Middle East +5.0% and East Asia & Pacific +5.6%. The latter continued to
benefit from higher levels of inbound leisure travel from Greater China, which
contributed to strong double-digit growth in numerous countries on top of
sharp increases last year.
In Greater China, H1 RevPAR was -3.2%, with occupancy +0.3%pts higher and rate
-3.6% lower. Q1 RevPAR of -3.5% was followed by -3.0% in Q2, helped by an
easing in the strong comparatives. H1 RevPAR was down -1.1% in Tier 1 cities
and down -6.0% in Tier 2-4 cities, due to lower Groups and Business demand and
increases in international outbound leisure trips. We remain encouraged by the
breadth and strength of the region's economic growth, and the attractive
long-term secular demand drivers, which continue to fuel record levels of
hotel development activity for IHG.
Trends by guest stay occasion led to H1 global rooms revenue for Leisure
bookings growing by +1% YOY (+1% room nights, flat rate) on a comparable hotel
basis, Business by +2% (+1% room nights, +1% rate) and Groups by +2% (flat
room nights, +2% rate). This builds further on the 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
● Industry revenue has outpaced global economic growth in 17 out of 25
years between 2000 and 2024, with a CAGR of +4.3% (versus +2.9% CAGR for GDP).
● Whilst in some countries geopolitical risk and the economic outlook
present shorter-term challenges and 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.
● Global hotel room nights consumed exceeded pre-pandemic 2019 levels
in 2023 and grew further in 2024, according to Oxford Economics. They forecast
a CAGR of +3.6% through to 2034. The US market is expected to increase by a
2.1% CAGR from 2.3 billion to 2.9 billion room nights over the next decade,
and China to be faster at a +3.9% CAGR, with the rest of world (excluding both
the US and China) also forecast to grow at a CAGR of +3.9%.
● Global hotel room net new supply grew at a CAGR of 2.3% over the
decade to 2024, and was 1.0% in the US, according to STR. Their latest
forecasts for US industry net supply growth are 0.8% in 2025 and 2026,
followed by improved growth rates of 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,
following the normalisation of financing and construction costs, 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 to travel to physically interact and for 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
and leading branded players such as IHG are accelerating conversion
opportunities to progress their unit growth performance.
Summary of system size and pipeline progress
Openings and signings to date in 2025 reflects 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 999k rooms (6,760 hotels) at 30 June 2025,
weighted 67% across midscale segments and 33% across upscale and luxury
● Gross growth +7.7% YOY (adjusting for The Venetian), with a record
31.4k rooms (207 hotels) opened in H1, +75% YOY; openings growth +59% YOY
excluding additions from the acquisition of Ruby (2.7k rooms in H1 2025) and
the NOVUM conversions added to IHG's system (2.0k rooms in H1 2025 and 1.2k
rooms in H1 2024); 16.8k rooms (121 hotels) opened in Q2
● Removal of 19.9k rooms (76 hotels) in H1, of which 7,092 were
previously affiliated with The Venetian Resort Las Vegas; removal rate of 2.3%
over the last 12 months, 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 size growth of +5.4% YOY (adjusting for The Venetian;
growth of +4.6% YOY on a reported basis)
● Signed 51.2k rooms (324 hotels) in H1; signings grew +15% YOY
excluding the Ruby acquisition in H1 2025 (5.7k rooms) and the NOVUM
Hospitality agreement in H1 2024 (17.5k rooms); 25.3k rooms (166 hotels)
signed in Q2
● 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
● Strong growth in conversions, which represented 57% of all room
openings in H1; conversion signings for a further 130 hotels in H1 2025 (101
in H1 2024 excluding NOVUM, 219 in total), an increase in rooms of +27%
excluding NOVUM; new-build signings for 164 hotels, an increase in rooms of
+9%
● Global pipeline of 338k rooms (2,276 hotels), representing 34% of
current system size and growth of +4% YTD
● More than 40% of the global pipeline is under construction, broadly
in line with prior years
System and pipeline summary of movements in H1 2025 and closing positions
(rooms):
System Pipeline
Openings Removals(a) Net Total YTD% YOY% YTD% YOY% Signings Total
Reported Reported Adjusted(a) Adjusted(a)
Global 31,372 (19,850) 11,522 998,647 +1.2% +4.6% +1.9% +5.4% 51,161 338,383
Americas 9,420 (15,140) (5,720) 522,274 -1.1% +0.1% +0.3% +1.5% 9,487 105,836
EMEAA 11,917 (2,081) 9,836 276,310 +3.7% +10.9% +3.7% +10.9% 24,869 115,312
Greater China 10,035 (2,629) 7,406 200,063 +3.8% +8.6% +3.8% +8.6% 16,805 117,235
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 YTD system size growth and YOY system size 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 commitments
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 are making great further progress on these priorities, including:
1. Growing our brands
2. Expanding in priority growth geographies
3. Strengthening hotel owner returns through commercial engine and
enterprise platform developments
4. Driving ancillary fee streams
5. Delivering increased dividends and return of surplus capital to our
shareholders
Each of these are summarised below. Together, these have driven our progress
in H1 on our growth algorithm, which we set out last year 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 by the combination of RevPAR
growth and net system size growth;
● 100-150bps annual improvement in fee margin on average over the
medium to long term from 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 driven by the combination of RevPAR and net
system size growth. Positive operational leverage is expected to drive
100-150bps annual improvement in fee margin as revenue growth is expected 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 is actively
developing further opportunities to drive fee margin over the longer term.
These include ongoing cost base efficiency and effectiveness initiatives, and
the expansion of ancillary fee streams including driving additional growth
from loyalty point sales and co-brand credit cards.
Summary of progress on our growth algorithm in the first half of 2025:
IHG made strong progress on all components of our growth algorithm:
● +7% growth in fee revenue(1);
● +390bps expansion in fee margin(1);
● >100% conversion of adjusted earnings(1) into adjusted free cash
flow(1) on a trailing 12-month basis;
● +10% growth in the ordinary dividend, a growth rate consistent with
that delivered for each of the last three years;
● 47% progressed through 2025's $900m share buyback programme to
return additional capital to shareholders; and
● +19% growth in adjusted EPS(1) through the combination of the above.
Within the 390bps fee margin(1) expansion, around 260bps 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). These revenue streams were
anticipated to contribute within IHG's results from reportable segments an
incremental ~$40m and ~$25m, respectively, to the 2025 full year, with
progress in the first half of the year on track towards this.
In the first half of 2025, an exceptional cost of $3m was charged to the fee
business in relation to a global efficiency programme, with costs expected to
exceed $10m for the year as a whole. These are expected to have 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, 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%. 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.
The combination of the fee revenue growth and fee margin(1) expansion drove a
13% increase in operating profit from reportable segments to $604m. Adjusted
interest expense(1) of $91m rose 15%, driven largely by the effect of
returning capital to shareholders; our expected range for interest for the
year as a whole is narrowed to $195-205m. Our adjusted tax(1) rate reduced
from 27% in the first half of last year to 26% in the first half of this year,
though a rate of 27% continues to be anticipated for the full year and the
near term. Our buyback programmes led to a further 4.3% 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 +19%.
The Board is confident of continued progress, consistent with our growth
algorithm 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 Interim Financial Statements.
Strategic and operational highlights to date 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 9% of total current system size and 22% of the pipeline. Successful brand
growth and awareness is inherently linked to RevPAR performance, increasing
our system size, sustainable progression of fee rates, and, ultimately, to
achieving attractive returns on investment for our hotel owners. Key
developments and highlights to date in 2025 included:
● Acquisition of premium urban lifestyle brand, Ruby. The Ruby brand
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 16 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 (GRS) to begin
later this year. There were 10 pipeline hotels at acquisition and a further
four have since been signed. We are on track to have the Ruby brand available
for development in the US this year.
● Powering ahead with our established brands. InterContinental, Hotel
Indigo, HUALUXE, Crowne Plaza, EVEN Hotels, Staybridge Suites, Candlewood
Suites and the Holiday Inn brand family each have pipelines representing at
least 20% of current system size. Across these brands, almost 200 hotels were
signed in H1 2025, which was 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 over 3,200 open hotels and 640 in the pipeline, include new marketing
campaigns, a new bean-to-cup upgraded coffee service already rolled out to
over 1,000 hotels, and its 5(th) generation of product model and lobby design.
This Gen 5 format is more efficiently constructed and allows for optimised
operational management, boosting both investment returns and guest
satisfaction. Our Crowne Plaza brand also has a new visual identity this year
on property and across digital channels, supported by new marketing campaigns.
● Accelerating conversions. Garner, our midscale conversion brand, has
reached 138 open and pipeline hotels across 10 countries in less than two
years since launch. Recent signings include entering India and Thailand, with
openings such as Garner Edinburgh Haymarket reflective of the brand's ability
to deliver a high-quality conversion in just three months. Our Luxury &
Lifestyle conversion brand Vignette Collection, launched in 2021, is ahead of
its goal to reach 100 hotels in a decade, with 26 open and 41 pipeline hotels.
Our versatile premium conversion brand voco has already exceeded 100 open
hotels across almost 30 countries since launch in 2018, and had a further 102
hotels in its pipeline, as signings continue to accelerate. These three
conversion-focused brands alone represented one-third of the 130 conversion
signings in H1, 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.
● Luxury & Lifestyle expansion. Our six brands in this higher
fee-per-key segment represent 13% of current system size (553 properties, 130k
rooms) and 22% of our pipeline (395 properties, 74k rooms), with the pipeline
representing 71% future growth in the number of properties and 57% in rooms.
Following strong development activity in 2024, we signed a further 47 Luxury
& Lifestyle hotels in H1 2025. In Upper Luxury, Six Senses has 65
properties and Regent 20 properties across the combination of their open
hotels and pipeline, and we continue to look to further develop our strategy
and portfolio in this area. With 4 openings and 10 signings in H1, the
InterContinental brand now has 231 open and 105 pipeline hotels, while Kimpton
has 81 and 65, respectively. Hotel Indigo has now exceeded 300 open and
pipeline hotels, reflecting its accelerated pace and roll-out internationally
to almost 50 countries.
2. Expanding in priority growth geographies
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.
● Further international expansion. In H1 there were 15 opening debuts
to new countries for individual IHG brands. These included Garner reaching
Austria, Italy and The Netherlands, adding the Candlewood and Kimpton brands
to our extensive portfolio in Germany, and debuts in Peru for
InterContinental, Vignette and Hotel Indigo.
● Growing in major markets. Our US estate reached 4,035 hotels, with
net system size growth of +1.5% YOY (adjusting for The Venetian), and the US
pipeline represents 20% of current system size. Early in 2025 we celebrated
our 800(th) opening and IHG's 50(th) anniversary in Greater China, and the
last six months were another record period for development activity; reaching
833 open hotels, net system size growth was +8.6% YOY, and a pipeline of 576
hotels represents almost 60% future rooms growth. After the US and China, our
next largest country market is the UK with 363 hotels, with net system size
growth of +2.1% YOY. Across the rest of our Europe region, we have 564 open
hotels and a further 244 in the pipeline, whilst across the rest of the EMEAA
region there are 483 open hotels and 354 in the pipeline, demonstrating IHG's
very strong growth outlook in the Middle East and Asia Pacific. With a total
rooms pipeline of equivalent to 42% of open system, EMEAA is an increasingly
strong growth contributor.
● Doubling IHG's presence in high value, high growth markets. Germany
is one of Europe's largest hotel markets, with strong domestic consumption and
inbound travel, and also one of the largest sources of international outbound
travel globally. Largely in this market, last year's NOVUM Hospitality
agreement is adding 108 open hotels (15.3k rooms) and there were a further 11
pipeline hotels (2.4k rooms) at the time. A total of 77 hotels (12.2k rooms)
have been converted to IHG's brands to date, including 19 hotels (2.0k rooms)
in H1 2025. A further 10 signings have also been secured beyond the 119 in the
initial agreement. Our open and pipeline hotels in Germany now stands at 236,
more than double the 110 at the start of 2024. In other high growth markets,
India has 51 open and 72 pipeline hotels, with 17 signed in H1 2025; and Saudi
Arabia has 45 open and 58 pipeline hotels, with 13 signed in H1. The latter
signings included two portfolios totalling six hotels across five different
IHG brands, as well as the launch of EVEN Hotels in EMEAA. Other priority
growth markets include Japan, with a current system of 55 hotels, where we
opened three hotels and signed six more during H1, and where conversion
opportunities continue to be notably strong.
3. Strengthening hotel owner returns through further commercial engine and
enterprise platform developments
By investing in our enterprise, over 80% 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. Developments in 2025 to date included:
● Strong mobile and digital channels growth. IHG's direct digital
booking channels now drive 26% of total room revenue, supporting a further
2%pts YOY increase in overall enterprise contribution. In H1, app downloads
increased 16% YOY, and further enhancements include guests' ability to book
different room types under a single reservation, store multiple payment cards,
and take advantage of new and improved Food & Beverage redemption rewards.
Our digital chatbot had 1.9 million conversations with guests in H1, up +27%
on last year, helping solve queries through AI-backed technology that save
hotel teams time and improve customer satisfaction.
● Boosting loyalty and brand awareness. With over 145 million IHG One
Rewards members globally, enrolments were up +22% and at record levels,
loyalty penetration has grown to ~65% of all room nights booked, and is
highest in the US and Americas overall at ~70%. Loyalty members typically
spend ~20% more in hotels than non-members and are around 10x more likely to
book direct, and co-brand credit card holders stay even more frequently and
spend more in IHG hotels. Reward Night redemptions grew further, and US
co-brand card customers have grown double-digit percent YOY. Masterbrand
awareness of IHG Hotels & Resorts continues to strengthen through key
strategic partnerships and campaigns, including the renewal and expansion of
the 'Guest How You Guest' marketing campaign. We have also evolved the
masterbrand endorsement for our hotels to 'By IHG' across on-property, digital
and marketing.
● Driving advantages for owners 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 was
made available in over 6,000 hotels in 2024, and as we scale further, it has
increased to around 50% of customers now seeing an up-sell offer at some point
in their booking journey. When selected, these offers are achieving average
nightly room revenue increases of ~$20 across our Essentials and Suites brands
and ~$40 for Luxury & Lifestyle. This is driving share-shift into premium
rooms, and more revenue to hotel owners.
● Rapid roll-out of our new Revenue Management System (RMS). A further
1,500 hotels adopted the N2Pricing system in H1, taking it to over 5,000
globally, with plans to reach around 6,400 by the end of the year. This new
RMS offers best-in-class cloud-based platforms and incorporates data science,
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). To create even greater value for owners, we are 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 faster colleague onboarding and training, and
streamlined front desk processes, including via mobile and remote access.
HotelKey was our first approved PMS solution for select service hotels in the
Americas and EMEAA, and we expect to have accelerated from an initial 250
hotels across 17 countries live on the system at the end of 2024 to around
1,500 hotels on this system by the end of 2025. Another 2,000 hotels will be
added in 2026. A new platform has also been deployed to around 500 select
service hotels in Greater China, and PMS pilots in full service hotels
continue at pace.
● New digital content and customer engagement platforms. The
development and rollout of a new digital content management platform in 2025
and 2026, across our app and all IHG booking websites, will make it easier and
faster for hotel owners to create and update compelling content to showcase
their properties. This also includes new content types such as video, 360
images, floor plans and virtual tours, together with improved information on
the properties and nearby attractions, machine translation into multiple
languages and enabling AI readiness for search of structured content. A new
Loyalty and Customer Relationship Management (CRM) platform is also being
built that will allow for better guest engagement and more tailored,
high-touch personalised experiences during booking and on-property, helping
reinforce guest satisfaction and deepen loyalty.
● Growing owner procurement services. Examples in 2025 include:
development of a casegoods furniture refinishing programme to lower renovation
costs and drive sustainable solutions; a new utilities management service to
help owners save on energy purchasing; over 100 additional hotels joining our
US Food & Beverage procurement programme, which now reaches over 2,000
properties; the launch of new non-food programmes in more countries, including
preparing to expand these for Ruby in Germany and the UK; and extending to
more products and categories across programmes, such as cleaning products in
the US and Canada, which have achieved cost rebates of 7-9% for owners.
● 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
2024 totalled $1.6bn, +17% more than five years earlier. Following a review
last year of IHG's owner charges, IHG lowered from the start of 2024 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 2024 totalled $520m, +13% higher than five years
earlier. 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.
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 also typically further enhance our overall fee
margin, providing step changes 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 a
step-change in arrangements expected to approximately double this in 2025.
This is tracking to expectations, and 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 credit card agreements. The attraction of co-branded IHG
One Rewards credit 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. In November 2024, IHG entered into new agreements with our US co-brand
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, with these expected to be double that level in
2025 and more than triple by 2028, and with continued growth anticipated in
the years beyond. Progress in 2025 to date is tracking to expectations. The
balance of fees that is recognised within System Fund revenue is also expected
to grow meaningfully over the term of the new agreements. We recently expanded
the IHG and Chase partnership with new IHG One Rewards status for Chase
Sapphire Reserve and Chase Sapphire Reserve for Business cards. Separately, a
new co-brand card is currently in discussion with other potential partners for
the UK, and further priority growth markets 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 is
forecasted to deliver double the current number of completed developments by
2031, according to Savills. IHG has 30+ branded residential projects open or
selling properties across 15+ countries, and more in the pipeline with several
expected to reach the sales launch stage later this year. Fees earned by IHG
from branded residences are expected to increase this year and to have
substantial future growth potential in years 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 a strong track record of
generating substantial capacity to support 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. 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, which was increased +10% on the year before that. The
interim dividend for 2025 will again increase by +10%, taking this to 58.6¢.
The ex-dividend date for the interim dividend is Thursday 21 August 2025
(Friday 22 August 2025 for ADRs) and the record date is Friday 22 August 2025.
The interim dividend will be paid on Thursday 2 October 2025, resulting in a
cash outflow of approximately $90m. Total dividends paid to shareholders in
2025 will amount to approximately $270m.
● Returning surplus capital. As announced at our 2024 FY results, a
$900m share buyback programme is returning surplus capital to shareholders in
2025. This follows the $800m programme in 2024, $750m in 2023 and the $500m
programme announced in 2022, which already reduced the total number of voting
rights in the Company by 4.6%, 6.1% and 5.0%, respectively. The 2025 programme
was 47% complete with $423m (£325m) having been cumulatively spent to 30
June, repurchasing 3.8 million shares. The 2025 programme to that date had
therefore reduced the total number of voting rights in the Company by a
further 2.4% to 154.7m.
● Total returns to shareholders. The $900m share buyback programme,
together with the growth in ordinary dividend payments, would result in over
$1.1bn being returned to shareholders in 2025. This is equivalent to 5.9% of
IHG's $19.8bn (£15.8bn) market capitalisation at the start of 2025, and 6.5%
of IHG's most recent $17.9bn (£13.4bn) market capitalisation.
● Leverage on track with 2.5-3.0x target range. IHG's net
debt:adjusted EBITDA ratio was 2.34x at 31 December 2024 and 2.67x at 30 June
2025. On a prospective basis, given analyst consensus expectations for growth
in EBITDA and cash generation in 2025, together with the $900m share buyback
programme and the cash outflows for the acquisition of the Ruby brand,
leverage at the end of 2025 is expected to be around the middle of our target
range of 2.5-3.0x.
Summary of financial performance
INCOME STATEMENT SUMMARY
6 months ended 30 June
2025 2024 %
$m $m change
Revenue(a)
Americas 561 561 -
EMEAA 368 347 6.1
Greater China 76 77 (1.3)
Central 170 123 38.2
_____ _____ _____
Revenue from reportable segments(b) 1,175 1,108 6.0
System Fund and reimbursable revenues 1,344 1,214 10.7
_____ _____ _____
Total revenue 2,519 2,322 8.5
Operating profit(a)
Americas 415 413 0.5
EMEAA 128 119 7.6
Greater China 44 43 2.3
Central 17 (40) NM(d)
_____ _____ _____
Operating profit from reportable segments(b) 604 535 12.9
Analysed as:
Fee business 590 517 14.1
Owned & leased 18 21 (14.3)
Insurance activities (4) (3) 33.3
System Fund and reimbursable result 31 (10) NM(d)
_____ _____ _____
Operating profit before exceptional items 635 525 21.0
Operating exceptional items (12) - NM(d)
_____ _____ _____
Operating profit 623 525 18.7
Net financial income/(expenses) 13 (52) NM(d)
Analysed as:
Adjusted interest expense(b) (91) (79) 15.2
System Fund interest 25 26 (3.8)
Foreign exchange gains 79 1 NM(d)
Remeasurement of contingent purchase consideration (3) (1) NM(d)
_____ _____ _____
Profit before tax 633 472 34.1
Tax (164) (125) 31.2
Analysed as:
Adjusted tax(b) (134) (123) 8.9
Tax attributable to System Fund (4) (2) 100.0
Tax on foreign exchange gains (8) - NM(d)
Tax on exceptional items and exceptional tax (18) - NM(d)
_____ _____ _____
Profit for the period 469 347 35.2
Adjusted earnings(c) 379 333 13.8
Basic weighted average number of ordinary shares (millions) 156.3 163.3 (4.3)
_____ _____ _____
Earnings per ordinary share
Basic 300.1¢ 212.5¢ 41.2
Adjusted(b) 242.5¢ 203.9¢ 18.9
Interim dividend per share 58.6¢ 53.2¢ 10.2
Average US dollar to sterling exchange rate $1: £0.77 $1: £0.79 (2.5)
a. 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.
b. 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 Interim Financial Statements.
c. Adjusted earnings as used within adjusted earnings per
share, a non-GAAP measure.
d. 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 and +1.8% in the first half, reflecting our globally
diverse footprint. Our other key driver of revenue, net system size, increased
by 4.6% year-on-year to 998,647 rooms, or 5.4% year-on-year excluding the
impact of removing rooms previously affiliated with The Venetian Resort Las
Vegas.
Total revenue increased by $197m (8.5%) to $2,519m, including a $130m increase
in System Fund and reimbursable revenues. Revenue from reportable segments(a)
increased by $67m (6.0%) to $1,175m, driven by RevPAR growth, system expansion
and the step-ups in ancillary fee streams. Underlying revenue(a) increased by
$59m (5.3%) to $1,166m, with underlying fee revenue(a) increasing by $53m
(6.3%) to $901m. Owned & leased revenue increased by $8m (3.2%) to $255m.
Operating profit and margin
Operating profit increased by $98m from $525m to $623m, including the $12m
increase in operating exceptional charge. The growth in operating profit was
primarily driven by a $57m increase in Central operating profit, from a $40m
loss to a $17m profit, in part due to the step-ups in ancillary fee streams,
and a $41m increase in the reported System Fund and reimbursable result, from
a $10m loss to a $31m profit.
Operating profit from reportable segments(a) increased by $69m (12.9%) to
$604m. Fee business operating profit increased by $73m (14.1%) to $590m, due
to a combination of fee revenue growth and ongoing focus on costs. Owned &
leased operating profit decreased from $21m to $18m. Underlying operating
profit(a) increased by $64m (12.0%) to $599m.
Fee margin(a) increased by 3.9%pts to 64.7%, of which ~2.6%pts was driven by
operational leverage, including the benefits from our global efficiency
programme and our ongoing actions to drive cost productivity. A further
~1.3%pts 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). These revenue streams were anticipated to
contribute within IHG's results from reportable segments(a) an incremental
~$40m and ~$25m, respectively, to the 2025 full year, with progress in the
first half of the year on track towards this.
The impact of the movement in average USD exchange rates for 2024 compared to
2025 netted to a $3m negative impact on operating profit from reportable
segments(a) when calculated as restating 2024 figures at 2025 exchange rates,
and negatively impacted operating profit from reportable segments(a) by $2m
when applying 2024 rates to 2025 figures.
If the average exchange rate during July 2025 had existed throughout the first
half of 2025, the 2025 operating profit from reportable segments(a) would have
been $2m 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 six months to 30 June 2025, System Fund and reimbursable revenues
increased $130m (10.7%) to $1,344m. This is due to the growth in reimbursable
revenues driven by the increased number of managed hotels, and the growth in
System Fund revenue due to the continued increase in net system size
compounded by year-over-year RevPAR growth.
The reported System Fund and reimbursable result increased to a $31m profit
from a $10m loss, primarily due to the System Fund revenue growth mentioned
above and the impact of our global efficiency programme, partially offset by
increased investments in marketing, loyalty and commercial services.
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 Interim Financial Statements.
Operating exceptional items
Operating exceptional items for the six months to 30 June 2025 are $12m
(2024: $nil). 2025 comprised costs of $9m relating to litigation and
commercial disputes and $3m relating to a global efficiency programme. Further
information on exceptional items can be found in note 5 to the Interim
Financial Statements.
Net financial income/(expenses)
Net financial income for the six months to 30 June 2025 is $13m (2024: expense
of $52m). The movement is principally due to foreign exchange gains of $79m
(2024: $1m gain), predominantly due to translation of US Dollar monetary
assets and liabilities held by subsidiaries with a Sterling functional
currency, partially offset by a $13m increase in total interest costs on
public bonds.
Adjusted interest(a), which excludes foreign exchange gains and adds back
interest attributable to the System Fund, increased by $12m to an expense of
$91m, driven by the increase in external bond interest.
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 net loss of $3m (2024: $1m) is
principally due to the impact of the unwind of the discount due to the passage
of time. The total contingent purchase consideration liability at 30 June
2025 is $93m (31 December 2024: $73m).
Taxation
Adjusted tax has been calculated by applying a blended effective tax rate of
26% (2024: 27%). This blended effective rate represents the weighting of the
annual tax rates of the Group's key territories using corporate income tax
rates substantively enacted at 30 June 2025 to provide the best estimate for
the full financial year. Further information on tax can be found in note 6 to
the Interim Financial Statements.
Earnings per share
The Group's basic earnings per ordinary share is 300.1¢ (2024: 212.5¢).
Adjusted earnings per ordinary share(a) increased by 38.6¢ (18.9%) to
242.5¢.
Dividends and shareholder returns
The Board is declaring an interim dividend of 58.6¢, an increase of 10% on
the 53.2¢ paid in 2024. The ex-dividend date for ordinary shares is Thursday
21 August 2025 and for American Depositary Receipts the ex-dividend date is
Friday 22 August 2025. The record date (for both ordinary shares and American
Depositary Receipts) is Friday 22 August 2025. The corresponding dividend
amount in Pence Sterling per ordinary share will be announced on Thursday 11
September 2025, calculated based on the average of the market exchange rates
for the three working days commencing 8 September 2025. The dividend will be
paid on Thursday 2 October 2025, resulting in a cash outflow of around $90m.
This will result in total dividends paid to shareholders in 2025 amounting to
approximately $270m. 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
DRIP elections for the interim dividend referred to above is 11 September 2025
at 5:00pm (UK time).
In February 2025, the Board approved a $900m share buyback programme to be
completed in 2025. This follows the $800m programme in 2024, the $750m
programme in 2023 and the $500m programme in 2022, which already reduced the
total number of voting rights in the Company by 4.6%, 6.1% and 5.0%,
respectively. In the six months to 30 June 2025, 3.8m shares were repurchased
for total consideration of $425m, including $2m of taxes and transaction costs
(see note 7 to the Interim 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 Interim Financial Statements.
Summary of cash flow, working capital, net debt and liquidity
Adjusted EBITDA(a) reconciliation 6 months ended 30 June
2025 2024
$m $m
Cash flow from operations 543 334
Cash flows relating to exceptional items 4 (10)
Impairment loss on financial assets (14) (8)
Other non-cash adjustments to operating profit (44) (35)
System Fund and reimbursable result (31) 10
System Fund depreciation and amortisation (40) (40)
Other non-cash adjustments to System Fund result (26) (22)
Working capital and other adjustments 158 244
Capital expenditure: contract acquisition costs net of repayments 87 94
_____ _____
Adjusted EBITDA(a) 637 567
_____ _____
CASH FLOW SUMMARY 6 months ended 30 June
2025 2024 $m
Re-presented(b)
$m $m change
Adjusted EBITDA(a) 637 567 70
Working capital and other adjustments (158) (244)
Repayments related to investments supporting the Group's insurance activities 8 9
Impairment loss on financial assets 14 8
Other non-cash adjustments to operating profit 44 35
System Fund and reimbursable result 31 (10)
Non-cash adjustments to System Fund result 66 62
Capital expenditure: key money contract acquisition costs, net of repayments (86) (86)
Capital expenditure: gross maintenance (10) (15)
Net interest paid (48) (29)
Tax paid (183) (140)
Principal element of lease payments, net of finance lease receipts (13) (16)
Purchase of own shares by employee share trusts - (10)
_____ _____ _____
Adjusted free cash flow(a) 302 131 171
Cash flows relating to exceptional items (4) 10
Capital expenditure: gross recyclable investments (9) (29)
Capital expenditure: gross System Fund capital investments (19) (21)
Purchase of brands (120) -
Deferred purchase consideration paid - (13)
Repurchase of shares, including transaction costs (425) (367)
Dividends paid to shareholders (180) (172)
Other financing cash flows 6 -
_____ _____ _____
Net cash flow before other net debt(a) movements (449) (461) 12
Add back principal element of lease repayments 15 16
Exchange and other non-cash adjustments (145) (65)
_____ _____ _____
Increase in net debt(a) (579) (510) (69)
Net debt(a) at beginning of the period (2,782) (2,272)
_____ _____ _____
Net debt(a) at end of the period (3,361) (2,782) (579)
_____ _____ _____
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 Interim Financial Statements.
b. Re-presented to reflect the updated definition of adjusted
free cash flow - see page 29.
Cash flow from operations
For the six months ended 30 June 2025, cash flow from operations was $543m,
an increase of $209m on the comparable period. This was led by the increase in
operating profit from reportable segments(a) and a reduction in the working
capital and other adjustments cash outflow led by lower prepayments in the
current year.
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.
Adjusted free cash flow(a)
Adjusted free cash flow(a) was an inflow of $302m, an increase of $171m on the
prior year. Adjusted EBITDA(a) increased by $70m due to the improvement in
trading. The System Fund and reimbursable result improved by $41m, reflecting
System Fund revenue growth and the impact of our global efficiency programme,
partially offset by increased investments in marketing, loyalty and commercial
services. Working capital and other adjustments of $158m includes $113m of
cash inflow related to deferred revenue, driven primarily by $49m related to
the loyalty programme and $37m of upfront cash flows associated with the new
US co-brand credit card agreements. These were partly offset by a $19m
increase in net interest paid, reflecting the increase in average debt, and
$43m higher tax payments.
Net and gross capital expenditure(a)
Net capital expenditure(a) was $85m (2024: $112m) and gross capital
expenditure(a) was $124m (2024: $151m). Gross capital expenditure(a)
comprised: $86m of key money contract acquisition costs; $10m of maintenance;
$9m gross recyclable investments; and $19m System Fund capital investments.
Net capital expenditure(a) includes an offset from $39m System Fund
depreciation and amortisation.
Net debt(a)
Net debt(a) increased by $579m from $2,782m at 31 December 2024 to $3,361m at
30 June 2025. During the period, the Group invested $120m to purchase the
Ruby brand and there were $605m 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 $96m and $49m of
other non-cash adjustments.
Sources of liquidity
As at 30 June 2025, the Group had total liquidity of $1,915m (31 December
2024: $2,319m), comprising $1,350m of undrawn bank facilities and $565m of
cash and cash equivalents (net of overdrafts and restricted cash). The change
in total liquidity from December 2024 of $404m is primarily due to net cash
outflows of $449m.
The Group currently has $3,685m of sterling and euro bonds outstanding. The
bonds mature in August 2025 (£300m), August 2026 (£350m), May 2027
(€500m), October 2028 (£400m), November 2029 (€600m) 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 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.
The Group is further financed by a $1,350m syndicated bank revolving credit
facility (RCF) which matures in 2029. There are two financial covenants:
interest cover and leverage ratio. Covenants are tested at half year and full
year on a trailing 12-month basis. The leverage ratio requires Covenant net
debt to Covenant EBITDA below 4.0:1 and the interest cover covenant requires a
ratio of Covenant EBITDA to Covenant interest payable above 3.5:1. At 30 June
2025, the leverage ratio was 2.68 and the interest cover ratio was 9.04. See
note 10 to the Interim Financial Statements for further information. The RCF
was undrawn at 30 June 2025.
The Group is in compliance with all of the applicable financial covenants in
its loan documents, none of which are expected to present a material
restriction on funding in the near future.
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 Interim 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.
6 months ended 30 June
2025 2024 %
$bn $bn Change(b)
Analysed by brand
InterContinental 2.6 2.6 3.0
Kimpton 0.7 0.7 2.1
Hotel Indigo 0.5 0.5 14.0
Crowne Plaza 1.8 1.8 (3.2)
Holiday Inn Express 4.7 4.6 1.4
Holiday Inn 2.9 2.9 (0.1)
Staybridge Suites 0.7 0.6 4.5
Candlewood Suites 0.5 0.4 5.3
Other 2.3 2.0 20.0
_____ _____ _____
Total 16.7 16.1 3.7
_____ _____ _____
Analysed by ownership type
Franchised(c) (revenue not attributable to IHG) 10.5 10.2 3.9
Managed (revenue not attributable to IHG) 5.9 5.7 3.5
Owned & leased 0.3 0.2 3.2
(revenue recognised in Group income statement)
_____ _____ _____
Total 16.7 16.1 3.7
_____ _____ _____
0.3
0.2
3.2
_____
_____
_____
Total
16.7
16.1
3.7
_____
_____
_____
Total gross revenue in IHG's system increased by 3.7% (4.4% increase at
constant currency) to $16.7bn, driven by improved trading in most markets and
growth 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 Interim Financial Statements
b. Year-on-year percentage movement calculated from source figures.
c. Includes exclusive partner hotels.
RevPAR(a) movement summary at constant exchange rates (CER)
Half Year 2025 vs 2024 Q2 2025 vs 2024
RevPAR ADR Occupancy RevPAR ADR Occupancy
Global 1.8% 1.4% 0.3%pts 0.3% 0.7% (0.2)%pts
Americas 1.4% 1.3% 0.1%pts (0.5)% 0.5% (0.7)%pts
EMEAA 4.1% 2.9% 0.8%pts 3.0% 2.0% 0.7%pts
Greater China (3.2)% (3.6)% 0.3%pts (3.0)% (2.9)% (0.1)%pts
RevPAR(a) movement at CER vs actual exchange rates (AER)
Half Year 2025 vs 2024 Q2 2025 vs 2024
CER AER Difference CER AER Difference
(as above) (as above)
Global 1.8% 1.7% (0.1)%pts 0.3% 1.2% 0.9%pts
Americas 1.4% 0.8% (0.6)%pts (0.5)% (0.8)% (0.3)%pts
EMEAA 4.1% 5.2% 1.1%pts 3.0% 6.7% 3.7%pts
Greater China (3.2)% (3.5)% (0.3)%pts (3.0)% (2.7)% 0.3%pts
AER
Difference
CER
(as above)
AER
Difference
Global
1.8%
1.7%
(0.1)%pts
0.3%
1.2%
0.9%pts
Americas
1.4%
0.8%
(0.6)%pts
(0.5)%
(0.8)%
(0.3)%pts
EMEAA
4.1%
5.2%
1.1%pts
3.0%
6.7%
3.7%pts
Greater China
(3.2)%
(3.5)%
(0.3)%pts
(3.0)%
(2.7)%
0.3%pts
a. RevPAR (revenue per available room), ADR (average daily rate) and
occupancy are on a comparable basis, based on comparability as at 30 June
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
30 June 31 December 30 June 31 December
Analysed by brand
Six Senses 27 - 1,950 -
Regent 11 - 3,168 (44)
InterContinental 231 4 74,728 944
Vignette Collection 26 6 5,844 1,879
Kimpton 81 4 14,803 772
Hotel Indigo 174 5 23,433 640
voco 107 20 22,916 2,540
Ruby 16 16 2,673 2,673
HUALUXE 21 (1) 5,721 (281)
Crowne Plaza 415 - 112,347 (1,277)
EVEN Hotels 43 10 6,593 1,511
Holiday Inn Express 3,264 27 347,895 3,938
Holiday Inn 1,239 (10) 224,049 (1,283)
Garner 51 28 5,028 2,628
avid hotels 81 5 7,231 429
Atwell Suites 6 - 556 -
Staybridge Suites 337 2 36,762 239
Holiday Inn Club Vacations 30 - 9,812 (56)
Candlewood Suites 410 18 36,620 1,803
Iberostar Beachfront Resorts 57 2 19,762 176
Other 133 (5) 36,756 (5,709)
_____ _____ _____ _____
Total 6,760 131 998,647 11,522
_____ _____ _____ _____
Analysed by ownership type
Franchised(a) 5,715 119 726,090 7,873
Managed 1,028 11 268,366 3,494
Owned & leased 17 1 4,191 155
_____ _____ _____ _____
Total 6,760 131 998,647 11,522
_____ _____ _____ _____
a. Includes exclusive partner hotels.
Hotels Rooms
Global Pipeline Change over Change over
2025 2024 2025 2024
30 June 31 December 30 June 31 December
Analysed by brand
Six Senses 38 - 2,886 (9)
Regent 9 - 1,932 (55)
InterContinental 105 4 27,129 1,437
Vignette Collection 41 6 7,468 1,079
Kimpton 66 5 13,290 1,157
Hotel Indigo 136 6 21,074 1,643
voco 102 12 19,709 4,081
Ruby 18 18 3,813 3,813
HUALUXE 24 - 6,291 (2)
Crowne Plaza 144 4 36,323 1,054
EVEN Hotels 26 (6) 4,852 (715)
Holiday Inn Express 640 3 80,440 1,218
Holiday Inn 280 14 52,714 1,037
Garner 87 (7) 7,941 (826)
avid hotels 131 (6) 9,961 (688)
Atwell Suites 61 7 6,454 994
Staybridge Suites 157 - 17,107 (208)
Candlewood Suites 192 9 14,376 77
Iberostar Beachfront Resorts 5 (2) 2,271 (176)
Other 14 (1) 2,352 (1,780)
_____ _____ _______ ______
Total 2,276 66 338,383 13,131
_____ _____ _______ ______
Analysed by ownership type
Franchised(a) 1,632 34 198,138 6,533
Managed 644 33 140,245 6,753
Owned & leased - (1) - (155)
_____ _____ _______ ______
Total 2,276 66 338,383 13,131
_____ _____ _______ ______
a. Includes exclusive partner hotels.
Regional performance reviews, system size and pipeline analysis
AMERICAS
6 months ended 30 June
Americas results
2025 2024 %
$m $m change
Revenue from the reportable segment(a)
Fee business 475 478 (0.6)
Owned & leased 86 83 3.6
_____ _____ _____
561 561 0.0
_____ _____ _____
Operating profit from the reportable segment(a)
Fee business 394 392 0.5
Owned & leased 21 21 0.0
_____ _____ _____
415 413 0.5
Operating exceptional items (1) - NM(b)
_____ _____ _____
Operating profit 414 413 0.2
_____ _____ _____
6 months ended
Americas Comparable RevPAR movement on previous year 30 June 2025
Fee business
InterContinental 4.6 %
Kimpton 0.8 %
Hotel Indigo 1.1 %
Crowne Plaza 1.5 %
EVEN Hotels 1.0 %
Holiday Inn Express 1.5 %
Holiday Inn 0.1 %
avid hotels 1.8 %
Staybridge Suites 1.7 %
Candlewood Suites 1.0 %
All brands 1.4 %
Owned & leased
All brands 1.1 %
_____
_____
_____
561
561
0.0
_____
_____
_____
Operating profit from the reportable segment(a)
Fee business
394
392
0.5
Owned & leased
21
21
0.0
_____
_____
_____
415
413
0.5
Operating exceptional items
(1)
-
NM(b)
_____
_____
_____
Operating profit
414
413
0.2
_____
_____
_____
Americas Comparable RevPAR movement on previous year
6 months ended
30 June 2025
Fee business
InterContinental
4.6 %
Kimpton
0.8 %
Hotel Indigo
1.1 %
Crowne Plaza
1.5 %
EVEN Hotels
1.0 %
Holiday Inn Express
1.5 %
Holiday Inn
0.1 %
avid hotels
1.8 %
Staybridge Suites
1.7 %
Candlewood Suites
1.0 %
All brands
1.4 %
Owned & leased
All brands
1.1 %
RevPAR for H1 grew +1.4% (Q1 +3.5%, Q2 -0.5%) with occupancy of 67.7% up
+0.1%pts and average daily rate +1.3% higher. US RevPAR grew +1.2% in H1, with
growth of +3.5% in Q1 moving to a decline of -0.9% in Q2. This move included
the adverse impact from the shift in timing of Easter between March and April,
and a broader impact in Q2 on certain types of business and leisure travel in
light of macro-economic developments. Rooms revenue for the region on a
comparable hotel basis in H1 was strongest for Business at +3%, with Groups
+1% and Leisure flat on 2024 levels.
Revenue from the reportable segment(a) was unchanged at $561m. Operating
profit increased by $1m to $414m, including a $1m exceptional cost in relation
to the global efficiency programme (further information on exceptional items
can be found in note 5 to the Interim Financial Statements). Operating profit
from the reportable segment(a) increased by $2m (+0.5%) to $415m.
Fee business revenue(a) decreased by $3m (-0.6%) to $475m. Whilst RevPAR
(which is on a comparable hotels and constant currency basis) was up +1.4%,
this was offset by lower revenue from a number of non-comparable hotels
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 $7m of incentive management fees earned (H1 2024: $7m). Fee
business operating profit(a) increased by $2m (+0.5%) to $394m, supported by
system size growth and cost efficiencies. This led to fee margin(a) increasing
to 82.7% compared to 82.0% in H1 2024.
Owned & leased revenue increased by $3m (+3.6%) to $86m, with RevPAR up
+1.1%, 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 was unchanged at $21m.
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 Interim 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
30 June 31 December 30 June 31 December
Analysed by brand
Six Senses 2 - 81 -
Regent 1 - 167 -
InterContinental 48 3 17,056 784
Vignette Collection 3 1 805 214
Kimpton 61 - 11,086 3
Hotel Indigo 76 1 10,255 127
voco 24 5 2,650 585
Crowne Plaza 101 (3) 24,997 (1,359)
EVEN Hotels 25 3 3,398 276
Holiday Inn Express 2,528 2 231,188 439
Holiday Inn 666 (11) 106,971 (2,555)
Garner 18 8 1,415 660
avid hotels 81 5 7,231 429
Atwell Suites 6 - 556 -
Staybridge Suites 314 2 33,011 238
Holiday Inn Club Vacations 30 - 9,812 (56)
Candlewood Suites 405 13 36,042 1,225
Iberostar Beachfront Resorts 26 2 9,443 176
Other 102 (5) 16,110 (6,906)
_____ ____ _______ ______
Total 4,517 26 522,274 (5,720)
_____ ____ _______ ______
Analysed by ownership type
Franchised(a) 4,344 25 485,658 (5,848)
Managed 169 1 35,279 128
Owned & leased 4 - 1,337 -
_____ ____ _______ ______
Total 4,517 26 522,274 (5,720)
_____ ____ _______ ______
a. Includes exclusive partner hotels.
Hotels Rooms
Americas Pipeline Change over Change over
2025 2024 2025 2024
30 June 30 June 30 June 30 June
Analysed by brand
Six Senses 9 - 660 -
InterContinental 9 (2) 2,401 (385)
Vignette Collection 4 - 282 (193)
Kimpton 31 1 5,807 122
Hotel Indigo 26 (1) 3,236 (2)
voco 22 (1) 2,605 (7)
Crowne Plaza 6 - 1,070 26
EVEN Hotels 5 (3) 673 (276)
Holiday Inn Express 324 (13) 30,538 (1,490)
Holiday Inn 63 (2) 7,152 (638)
Garner 46 3 3,592 97
avid hotels 131 (6) 9,961 (688)
Atwell Suites 54 2 5,426 204
Staybridge Suites 143 1 14,888 (86)
Candlewood Suites 183 8 13,193 (6)
Iberostar Beachfront Resorts 4 (2) 2,000 (176)
Other 14 - 2,352 -
_____ ____ _______ ______
Total 1,074 (15) 105,836 (3,498)
_____ ____ _______ ______
Analysed by ownership type
Franchised(a) 1,030 (13) 98,829 (3,246)
Managed 44 (2) 7,007 (252)
_____ ____ _______ ______
Total 1,074 (15) 105,836 (3,498)
_____ ____ _______ ______
a. Includes exclusive partner hotels.
Gross system size growth was +3.8% YOY (adjusting for The Venetian) with the
opening of 9.4k rooms (78 hotels) in the Americas region during the first half
of the year, of which 5.4k rooms (47 hotels) opened in Q2. Openings in the
half included 32 hotels across the Holiday Inn Brand Family and a further 18
properties across the Staybridge Suites and Candlewood Suites brands. There
were five more avid hotels added to reach 81 open (with 131 more in the
pipeline), and the next eight Garner conversions took the open portfolio to 18
as it rapidly develops in less than two years since becoming franchise-ready,
with a further 46 in its pipeline. The voco brand added five more conversions
taking its portfolio to 24, with 22 more in the pipeline as it rolls 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.
Net system size grew +0.1% YOY on a reported basis, after removals of 15.1k
rooms (52 hotels) in the half. Adjusting for the impact of removing 7.1k rooms
previously affiliated with The Venetian Resort Las Vegas, net system size grew
+1.5% YOY with a removal rate of 2.2% over the last 12 months.
There were 9.5k rooms (97 hotels) signed during the first half of the year,
including 5.0k rooms (55 hotels) during Q2. Strong development activity
continued for our Essentials and Suites brands - there were 29 signings across
the Holiday Inn Brand Family and 39 across Staybridge, Candlewood and Atwell.
Ongoing demand for conversions also saw 12 signings for Garner and six for
voco, including the first resort for the voco brand in Jamaica. Examples such
as 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 Hotel Indigo Myrtle
Beach, Crowne Plaza Merida, Mexico.
The pipeline stands at 105.8k rooms (1,074 hotels), which represents 20% of
the current system size in the region.
EMEAA
6 months ended 30 June
EMEAA results
2025 2024 %
$m $m change
Revenue from the reportable segment(a)
Fee business 199 183 8.7
Owned & leased 169 164 3.0
_____ _____ _____
368 347 6.1
_____ _____ _____
Operating profit/(loss) from the reportable segment(a)
Fee business 131 119 10.1
Owned & leased (3) - NM(b)
_____ _____ _____
128 119 7.6
Operating exceptional items (10) - NM(b)
_____ _____ _____
Operating profit 118 119 (0.8)
_____ _____ _____
Owned & leased
169
164
3.0
_____
_____
_____
368
347
6.1
_____
_____
_____
Operating profit/(loss) from the reportable segment(a)
Fee business
131
119
10.1
Owned & leased
(3)
-
NM(b)
_____
_____
_____
128
119
7.6
Operating exceptional items
(10)
-
NM(b)
_____
_____
_____
Operating profit
118
119
(0.8)
_____
_____
_____
6 months ended
EMEAA comparable RevPAR movement on previous year 30 June 2025
Fee business
Six Senses 11.0 %
InterContinental 7.2 %
Hotel Indigo 3.6 %
voco 4.8 %
Crowne Plaza 4.0 %
Holiday Inn Express 0.2 %
Holiday Inn 2.4 %
Staybridge Suites 1.6 %
All Brands 4.2 %
Owned & leased
All Brands 1.0 %
6 months ended
30 June 2025
Fee business
Six Senses
11.0 %
InterContinental
7.2 %
Hotel Indigo
3.6 %
voco
4.8 %
Crowne Plaza
4.0 %
Holiday Inn Express
0.2 %
Holiday Inn
2.4 %
Staybridge Suites
1.6 %
All Brands
4.2 %
Owned & leased
All Brands
1.0 %
RevPAR for H1 grew +4.1%, with occupancy of 69.8% up +0.8%pts and average
daily rate +2.9% higher. Strong RevPAR growth of +5.0% in Q1 eased to +3.0% in
Q2, in part due to fewer travel-related international events compared to the
prior year. By major geographic markets, H1 RevPAR was Continental Europe
+5.1%, UK -0.8%, to Middle East +5.0% and East Asia & Pacific +5.6%. The
latter continued to benefit from increased levels of inbound leisure travel
from Greater China, which contributed to strong double-digit growth in
numerous countries on top of sharp increases last year. Rooms revenue for the
region on a comparable hotel basis in H1 was still strongest for Groups at
+5%, with Business and Leisure both up +3% on 2024 levels.
Revenue from the reportable segment(a) increased by $21m (+6.1%) to $368m.
Operating profit reduced by $1m to $118m, including a $10m 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 Interim Financial Statements). Operating profit from the reportable
segment(a) increased by $9m (+7.6%) to $128m.
Fee business revenue(a) increased by $16m (+8.7%) to $199m, with RevPAR up
+4.2%. There were $62m of incentive management fees earned (H1 2024: $55m).
Fee business operating profit(a) increased by $12m (+10.1%) to $131m and fee
margin(a) increased to 65.8% compared to 65.0% in H1 2024, with positive
operating leverage driven by the trading performance, system growth and cost
efficiencies.
Owned & leased revenue increased by $5m (+3.0%) to $169m, with RevPAR on a
comparable hotels and constant currency basis up +1.0%. Reflecting the trading
conditions and cost bases of this largely urban-centred portfolio of 13
hotels, there was an operating loss of $3m compared to breakeven being
achieved in the first half of 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 Interim
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
EMEAA hotel and room count Change over Change over
2025 2024 2025 2024
30 June 31 December 30 June 31 December
Analysed by brand
Six Senses 24 - 1,739 -
Regent 4 - 947 (44)
InterContinental 122 1 34,204 259
Vignette Collection 16 3 3,255 1,146
Kimpton 16 3 2,978 480
Hotel Indigo 68 2 8,392 188
voco 59 8 15,649 1,041
Ruby 16 16 2,673 2,673
Crowne Plaza 181 - 43,545 (345)
Holiday Inn Express 363 3 53,289 454
Holiday Inn 424 (1) 77,526 131
Garner 33 20 3,613 1,968
Staybridge Suites 23 - 3,751 1
Candlewood Suites 5 5 578 578
Iberostar Beachfront Resorts 31 - 10,319 -
Other 25 1 13,852 1,306
_____ ____ _______ ______
All Brands 1,410 61 276,310 9,836
_____ ____ _______ ______
Analysed by ownership type
Franchised(a) 980 49 163,109 6,571
Managed 417 11 110,347 3,110
Owned & leased 13 1 2,854 155
_____ ____ _______ ______
Total 1,410 61 276,310 9,836
_____ ____ _______ ______
a. Includes exclusive partner hotels.
Hotels Rooms
EMEAA Pipeline Change over Change over
2025 2024 2025 2024
30 June 31 December 30 June 31 December
Analysed by brand
Six Senses 28 - 2,172 (9)
Regent 7 - 1,405 (55)
InterContinental 64 4 15,938 1,412
Vignette Collection 30 5 5,455 1,076
Kimpton 19 4 3,324 1,070
Hotel Indigo 52 3 8,300 1,092
voco 60 10 12,275 2,859
Ruby 18 18 3,813 3,813
Crowne Plaza 62 3 14,675 654
EVEN Hotels 2 2 555 555
Holiday Inn Express 96 7 15,595 1,256
Holiday Inn 123 9 23,783 964
Garner 41 (10) 4,349 (923)
Staybridge Suites 14 (1) 2,219 (122)
Candlewood Suites 9 1 1,183 83
Iberostar Beachfront Resorts 1 - 271 -
Other - (1) - (1,780)
____ ____ ______ ______
All Brands 626 54 115,312 11,945
____ ____ ______ ______
Analysed by ownership type
Franchised(a) 295 31 44,172 6,600
Managed 331 24 71,140 5,500
Owned & leased - (1) - (155)
____ ____ ______ ______
Total 626 54 115,312 11,945
____ ____ ______ ______
a. Includes exclusive partner hotels.
Gross system size growth was +12.5% YOY with the opening of 11.9k rooms (74
hotels) in the EMEAA region during the first half of the year, of which 5.7k
rooms (44 hotels) opened in Q2. Openings in the half included the first 16
Ruby hotels (2.7k rooms) added into IHG's system in the initial phase of
integration. A further 19 conversions (2.0k rooms) as part of the NOVUM
Hospitality agreement were added, taking the total to date to 77 out of the
total of 119 open and pipeline hotels at the time of the initial agreement.
There were further conversion openings within the eight openings for the voco
brand and three for Vignette Collection. There were six other openings across
our Luxury & Lifestyle brands, including InterContinental Brisbane,
Kimpton Main Frankfurt (a debut for the brand in Germany) and Kimpton
Atlantico Algarve (which was another first for the brand, taking it into
Portugal). There were nine Holiday Inn Brand Family openings, and four for
Crowne Plaza.
Net system size grew +10.9% YOY, after removals of 2.1k rooms (13 hotels) in
the half, with the removal rate being 1.5% over the last 12 months. The NOVUM
Hospitality properties contributed +4.4% to the YOY system growth, and the
initial Ruby additions contributed 1.1%.
There were 24.9k rooms (134 hotels) signed during the first half of the year,
including 12.0k rooms (62 hotels) during Q2. There were 30 Ruby signings (5.7k
rooms) for the 20 open and 10 pipeline hotels at the time of acquisition, with
4 further Ruby signings achieved since then. There were 16 signings for the
voco brand and 10 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 Thailand and India. Within 29 signings across IHG's
Luxury & Lifestyle brands, there was also Six Senses Bangkok, Thailand,
and a further InterContinental in India in Kasauli, a debut for Kimpton in the
UAE, and nine signings for the Vignette Collection across almost as many
countries which contributed to the overall strength of conversion signings
across the region. The attraction to owners of our established brands was also
reflected in seven Crowne Plaza signings, 16 for Holiday Inn Express and 19
for Holiday Inn, whilst two signings for EVEN Hotels will introduce that brand
to the Middle East and the wider EMEAA region.
The pipeline stands at 115.3k rooms (626 hotels), which represents 42% of the
current system size in the region.
GREATER CHINA
6 months ended 30 June
Greater China results
2025 2024 %
$m $m change
Revenue from the reportable segment(a)
Fee business 76 77 (1.3)
_____ _____ _____
76 77 (1.3)
_____ _____ _____
Operating profit from the reportable segment(a)
Fee business 44 43 2.3
_____ _____ _____
_____
_____
_____
76
77
(1.3)
_____
_____
_____
Operating profit from the reportable segment(a)
Fee business
44
43
2.3
_____
_____
_____
Greater China comparable RevPAR movement on previous year 6 months ended
30 June 2025
Fee business
Regent 17.3%
InterContinental (4.1)%
Hotel Indigo 3.2%
HUALUXE (1.9)%
Crowne Plaza (4.1)%
Holiday Inn Express (7.5)%
Holiday Inn (6.5)%
All brands (3.2)%
6 months ended
30 June 2025
Fee business
Regent
17.3%
InterContinental
(4.1)%
Hotel Indigo
3.2%
HUALUXE
(1.9)%
Crowne Plaza
(4.1)%
Holiday Inn Express
(7.5)%
Holiday Inn
(6.5)%
All brands
(3.2)%
RevPAR for H1 was down -3.2%, with occupancy of 56.5% +0.3%pts higher and
average daily rate -3.6% lower. Q1 RevPAR of -3.5% was followed by -3.0% in
Q2, helped by an easing in the strong comparatives. H1 RevPAR was down -1.1%
in Tier 1 cities and down -6.0% in Tier 2-4 cities, due to lower Groups and
Business demand and further increases in international outbound leisure trips.
Rooms revenue for the region on a comparable hotel basis in H1 was flat
overall for Leisure, but Business was down -5% and Groups -6% on 2024 levels.
We remain encouraged by the breadth and strength of the region's economic
growth, and the attractive long-term secular demand drivers, which continue to
fuel record levels of hotel development activity for IHG.
Revenue from the reportable segment(a) was $1m lower at $76m, with the effect
of negative RevPAR in the comparable estate, together with small reductions in
other fee streams, largely offset by the incremental revenue from system
growth. There were $16m of incentive management fees earned (H1 2024: $19m).
Operating profit increased by $1m (+2.3%) to $44m and fee margin(a) increased
to 57.9% compared to 55.8% in H1 2024, supported by cost efficiencies achieved
in the period.
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 Interim Financial Statements.
Hotels Rooms
Greater China hotel and room count Change over Change over
2025 2024 2025 2024
30 June 31 December 30 June 31 December
Analysed by brand
Six Senses 1 - 130 -
Regent 6 - 2,054 -
InterContinental 61 - 23,468 (99)
Vignette Collection 7 2 1,784 519
Kimpton 4 1 739 289
Hotel Indigo 30 2 4,786 325
voco 24 7 4,617 914
HUALUXE 21 (1) 5,721 (281)
Crowne Plaza 133 3 43,805 427
EVEN Hotels 18 7 3,195 1,235
Holiday Inn Express 373 22 63,418 3,045
Holiday Inn 149 2 39,552 1,141
Other 6 (1) 6,794 (109)
_____ ____ _______ ______
Total 833 44 200,063 7,406
_____ ____ _______ ______
Analysed by ownership type
Franchised 391 45 77,323 7,150
Managed 442 (1) 122,740 256
_____ ____ _______ ______
Total 833 44 200,063 7,406
_____ ____ _______ ______
Hotels Rooms
Greater China Pipeline Change over Change over
2025 2024 2025 2024
30 June 31 December 30 June 31 December
Analysed by brand
Six Senses 1 - 54 -
Regent 2 - 527 -
InterContinental 32 2 8,790 410
Vignette Collection 7 1 1,731 196
Kimpton 16 - 4,159 (35)
Hotel Indigo 58 4 9,538 553
voco 20 3 4,829 1,229
HUALUXE 24 - 6,291 (2)
Crowne Plaza 76 1 20,578 374
EVEN Hotels 19 (5) 3,624 (994)
Holiday Inn Express 220 9 34,307 1,452
Holiday Inn 94 7 21,779 711
Atwell Suites 7 5 1,028 790
_____ ____ _______ ______
Total 576 27 117,235 4,684
_____ ____ _______ ______
Analysed by ownership type
Franchised 307 16 55,137 3,179
Managed 269 11 62,098 1,505
_____ ____ _______ ______
Total 576 27 117,235 4,684
_____ ____ _______ ______
Gross system size growth was +12.0% YOY with the opening of 10.0k rooms (55
hotels) in the Greater China region during the first half of the year, another
hotel openings record, of which 5.7k (30 hotels) opened in Q2. 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 reached later
in the period. Openings in the half saw 31 for the Holiday Inn Brand Family
(including key locations such as Holiday Inn Express Taipei Train Station and
Holiday Inn Shanghai Pudong Airport), five Crowne Plaza properties, and a
notably strong period of openings for EVEN Hotels with seven properties added
which increases its portfolio to 18.
As our other brands build scale in the region, there were seven further voco
properties opened and five 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 40% of
all room openings in H1.
Net system size growth was +8.6% YOY, after removals of 2.6k rooms (11 hotels)
in the half. The removal rate of 3.4% over the last 12 months has been
temporarily elevated, and is expected to normalise back down over the coming
years.
There were 16.8k rooms (93 hotels) signed during the first half of the year,
which was also a record, including 8.3k rooms (49 hotels) during Q2. During
the first half there were 16 hotel signings for Holiday Inn and a particularly
strong 39 for Holiday Inn Express, growing their pipelines to 94 and 220,
respectively, and six Crowne Plaza signings. The Atwell Suites brand was
launched in the region towards the end of last year, and another five signings
were achieved, with the first openings expected to come in the second half of
the year which should further accelerate development interest. There were 13
signings across our Luxury & Lifestyle brands, including four 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 117.2k rooms (576 hotels), which represents 59% of the
current system size in the region.
CENTRAL
6 months ended 30 June
2025 2024 %
Central results $m $m change
Revenue from the reportable segment(a)
Fee business 158 112 41.1
Insurance activities 12 11 9.1
_____ _____ _____
170 123 38.2
_____ _____ _____
Gross costs
Fee business (137) (149) (8.1)
Insurance activities (16) (14) 14.3
_____ _____ _____
(153) (163) (6.1)
_____ _____ _____
Operating profit/(loss) from the reportable segment(a)
Fee business 21 (37) NM(b)
Insurance activities (4) (3) 33.3
_____ _____ _____
17 (40) NM(b)
Operating exceptional items (1) - NM(b)
_____ _____ _____
Operating profit/(loss) 16 (40) NM(b)
_____ _____ _____
Central revenue is mainly comprised of technology fee income, revenue from
insurance activities, co-brand licensing fees and a portion of revenue from
the consumption of certain IHG One Rewards points. Central revenue increased
by $47m (38.2%) to $170m. This was primarily 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). These revenue streams were
anticipated to contribute within IHG's results from reportable segments(a) an
incremental ~$40m and ~$25m, respectively, to the 2025 full year, with
progress in the first half of the year on track towards this.
Gross costs decreased by $10m (6.1)% year-on-year, primarily driven by our
ongoing focus on costs, including the benefits from our global efficiency
programme.
The resulting $17m operating profit from the reportable segment(a) was an
increase of $57m year-on-year. Operating profit of $16m included a $1m
exceptional cost in relation to the global efficiency programme (further
information on exceptional items can be found in note 5 to the Interim
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 Interim
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 Interim
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 Interim
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 Interim 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. 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 note 5 to the Interim 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 excludes foreign
exchange gains/losses primarily related to the Group's internal funding
structure 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).
The exclusion of foreign exchange gains/losses provides greater comparability
with covenant interest as calculated under the terms of the Group's revolving
credit facility.
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 as excluded in adjusted interest (above),
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 key ratios
attached to the Group's bank covenants and 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 Interim 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 and is also relevant to the Group's banking covenants, which
use Covenant EBITDA in calculating the leverage ratio. Details of covenant
levels and performance against these are provided in note 10 to the Interim
Financial Statements.
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. The 30 June 2024 comparatives have
been restated to align with the changes made to the definition of adjusted
free cash flow as explained in the 2024 Annual Report.
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. 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. The 30 June 2024 comparatives have
been restated to align with the changes made to the definition of gross
capital expenditure as explained in the 2024 Annual Report.
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, 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. The 30 June 2024 comparatives have been
restated to align with the changes made to the definition of net capital
expenditure as explained in the 2024 Annual Report.
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 6 months ended 30 June
Reportable segments Revenue Operating profit
2025 2024 % 2025 2024 %
$m $m change $m $m change
Per Group income statement 2,519 2,322 8.5 623 525 18.7
System Fund and reimbursables (1,344) (1,214) 10.7 (31) 10 NM(a)
Operating exceptional items - - NM(a) 12 - NM(a)
_____ _____ _____ _____ _____ _____
Reportable segments 1,175 1,108 6.0 604 535 12.9
Reportable segments analysed as:
Fee business 908 850 6.8 590 517 14.1
Owned & leased 255 247 3.2 18 21 (14.3)
Insurance activities 12 11 9.1 (4) (3) 33.3
_____ _____ _____ _____ _____ _____
Reportable segments 1,175 1,108 6.0 604 535 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.
Underlying revenue and underlying operating profit
Revenue Operating profit
2025 2024 % 2025 2024 %
Re-presented(c) Re-presented(c)
$m $m change $m $m change
Reportable segments (see above) 1,175 1,108 6.0 604 535 12.9
Significant liquidated damages (7) - NM(b) (7) - NM(b)
Owned & leased asset acquisition and disposal(a) (2) (4) (50.0) 2 3 (33.3)
Currency impact - 3 NM(b) - (3) NM(b)
_____ _____ _____ _____ _____ _____
Underlying revenue and underlying operating profit 1,166 1,107 5.3 599 535 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.
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. Re-presented to reflect a change in the threshold for liquidated
damages classified as significant and one Regent hotel in 2024 (being the year
of lease expiration).
Underlying fee revenue and underlying fee operating profit
Revenue Operating profit
2025 2024 % 2025 2024 %
Re-presented(b) Re-presented(b)
$m $m change $m $m change
Reportable segments fee business (see above) 908 850 6.8 590 517 14.1
Significant liquidated damages (7) - NM(a) (7) - NM(a)
Currency impact - (2) NM(a) - (4) NM(a)
_____ _____ _____ _____ _____ _____
Underlying fee revenue and underlying fee operating profit 901 848 6.3 583 513 13.6
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.
b. Re-presented to reflect a change in the threshold for liquidated
damages classified as significant.
Americas
Revenue Operating profit(a)
2025 2024 % 2025 2024 %
$m $m change $m $m change
Per financial statements 561 561 - 415 413 0.5
Reportable segments analysed as:
Fee business 475 478 (0.6) 394 392 0.5
Owned & leased 86 83 3.6 21 21 -
_____ _____ _____ _____ _____ _____
561 561 - 415 413 0.5
Reportable segments (see above) 561 561 - 415 413 0.5
Significant liquidated damages (7) - NM(b) (7) - NM(b)
Currency impact - (3) NM(b) - (3) NM(b)
_____ _____ _____ _____ _____ _____
Underlying revenue and 554 558 (0.7) 408 410 (0.5)
underlying operating profit
Owned & leased included in the above (86) (83) 3.6 (21) (21) -
_____ _____ _____ _____ _____ _____
Underlying fee business 468 475 (1.5) 387 389 (0.5)
554
558
(0.7)
408
410
(0.5)
Owned & leased included in the above
(86)
(83)
3.6
(21)
(21)
-
_____
_____
_____
_____
_____
_____
Underlying fee business
468
475
(1.5)
387
389
(0.5)
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 %
Re-presented(d) Re-presented(d)
$m $m change $m $m change
Per financial statements 368 347 6.1 128 119 7.6
Reportable segments analysed as:
Fee business 199 183 8.7 131 119 10.1
Owned & leased 169 164 3.0 (3) - NM(b)
_____ _____ _____ _____ _____ _____
368 347 6.1 128 119 7.6
Reportable segments (see above) 368 347 6.1 128 119 7.6
Owned & leased acquisition and disposal(c) (2) (4) (50.0) 2 3 (33.3)
Currency impact - 7 NM(b) - 2 NM(b)
_____ _____ _____ _____ _____ _____
Underlying revenue and underlying operating profit 366 350 4.6 130 124 4.8
Owned & leased included in the above (167) (165) 1.2 1 (4) NM(b)
_____ _____ _____ _____ _____ _____
Underlying fee business 199 185 7.6 131 120 9.2
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.
d. Re-presented to reflect a change in the threshold for liquidated
damages classified as significant.
Greater China
Revenue Operating profit(a)
2025 2024 % 2025 2024 %
$m $m change $m $m change
Per financial statements 76 77 (1.3) 44 43 2.3
Reportable segments analysed as:
Fee business 76 77 (1.3) 44 43 2.3
_____ _____ _____ _____ _____ _____
76 77 (1.3) 44 43 2.3
Reportable segments (see above) 76 77 (1.3) 44 43 2.3
Currency impact - (1) NM(b) - (1) NM(b)
_____ _____ _____ _____ _____ _____
Underlying revenue and underlying operating profit 76 76 - 44 42 4.8
44
43
2.3
Reportable segments analysed as:
Fee business
76
77
(1.3)
44
43
2.3
_____
_____
_____
_____
_____
_____
76
77
(1.3)
44
43
2.3
Reportable segments (see above)
76
77
(1.3)
44
43
2.3
Currency impact
-
(1)
NM(b)
-
(1)
NM(b)
_____
_____
_____
_____
_____
_____
Underlying revenue and underlying operating profit
76
76
-
44
42
4.8
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.
Fee margin reconciliation
6 months ended 30 June 2025
Americas EMEAA Greater China Central(a) Total
Revenue $m
Reportable segments analysed as fee business (see above) 475 199 76 158 908
Significant liquidated damages (7) - - - (7)
_____ _____ _____ _____ _____
468 199 76 158 901
Operating profit $m
Reportable segments analysed as fee business (see above) 394 131 44 21 590
Significant liquidated damages (7) - - - (7)
_____ _____ _____ _____ _____
387 131 44 21 583
Fee margin % 82.7% 65.8% 57.9% 13.3% 64.7%
6 months ended 30 June 2024
Americas EMEAA Greater China Central(a) Total
Re-presented(b) Re-presented(b)
Revenue $m
Reportable segments analysed as fee business (see above) 478 183 77 112 850
_____ _____ _____ _____ _____
478 183 77 112 850
Operating profit $m
Reportable segments analysed as fee business (see above) 392 119 43 (37) 517
_____ _____ _____ _____ _____
392 119 43 (37) 517
Fee margin % 82.0% 65.0% 55.8% (33.0)% 60.8%
a. Central fee business revenue and operating profit as per note 3 to
the Interim Financial Statements, and excludes revenue and operating loss from
insurance activities of $12m and $(4)m, respectively (2024: $11m and $(3)m).
b. Re-presented to reflect a change in the threshold for liquidated
damages classified as significant.
Net and gross capital expenditure reconciliation
6 months ended 30 June
2025 2024
Re-presented(a)
$m $m
Net cash from investing activities (147) (58)
Adjusted for:
Contract acquisition costs, net of repayments (87) (94)
System Fund depreciation and amortisation(b) 39 39
Payment of deferred purchase consideration - 10
Repayments related to investments supporting the Group's insurance activities (8) (9)
Purchase of brands 120 -
Finance lease receipts (2) -
_____ _____
Net capital expenditure (85) (112)
Further adjusted for:
System Fund depreciation and amortisation(b) (39) (39)
_____ _____
Gross capital expenditure (124) (151)
Analysed as: Gross Repaid Net Gross Repaid Net
Key money contract acquisition costs (86) - (86) (86) - (86)
Maintenance (10) - (10) (15) - (15)
Recyclable capital expenditure
Recyclable contract acquisition costs (1) - (1) (8) - (8)
Other recyclable investments (8) - (8) (21) - (21)
Capital expenditure: System Fund investments (19) 39 20 (21) 39 18
_____ _____ _____ _____ _____ _____
Total capital expenditure (124) 39 (85) (151) 39 (112)
a. Re-presented to reflect the updated definition of gross and net
capital expenditure - see page 29 to 30.
b. Excludes depreciation of right-of-use assets
Adjusted free cash flow reconciliation
6 months ended
30 June
2025 2024
Re-presented(a)
$m $m
Net cash from operating activities 312 162
Adjusted for:
Purchase of shares by employee share trusts - (10)
Gross maintenance capital expenditure (10) (15)
Cash flows relating to exceptional items 4 (10)
Principal element of lease payments (15) (16)
Deferred purchase consideration - 3
Recyclable contract acquisition costs 1 8
Repayments related to investments supporting the Group's insurance activities 8 9
Finance lease receipts 2 -
_____ _____
Adjusted free cash flow 302 131
_____ _____
2025
2024
Re-presented(a)
$m
$m
Net cash from operating activities
312
162
Adjusted for:
Purchase of shares by employee share trusts
-
(10)
Gross maintenance capital expenditure
(10)
(15)
Cash flows relating to exceptional items
4
(10)
Principal element of lease payments
(15)
(16)
Deferred purchase consideration
-
3
Recyclable contract acquisition costs
1
8
Repayments related to investments supporting the Group's insurance activities
8
9
Finance lease receipts
2
-
_____
_____
Adjusted free cash flow
302
131
_____
_____
a. Re-presented to reflect the updated definition of adjusted free
cash flow - see page 29.
Adjusted interest reconciliation
6 months ended
30 June
2025 2024
$m $m
Net financial expenses
Financial income 104 32
Financial expenses (91) (84)
_____ _____
13 (52)
Adjusted for:
Interest attributable to the System Fund (25) (26)
Foreign exchange gains (79) (1)
_____ _____
(104) (27)
_____ _____
Adjusted interest (91) (79)
_____ _____
2025
2024
$m
$m
Net financial expenses
Financial income
104
32
Financial expenses
(91)
(84)
_____
_____
13
(52)
Adjusted for:
Interest attributable to the System Fund
(25)
(26)
Foreign exchange gains
(79)
(1)
_____
_____
(104)
(27)
_____
_____
Adjusted interest
(91)
(79)
_____
_____
Adjusted tax and tax rate reconciliation
2025 2024
Profit before tax Tax
rate Profit before tax Tax
rate
$m Tax $m Tax
$m $m
Group income statement 633 (164) 25.9 % 472 (125) 26.5 %
Adjust to exclude:
Exceptional items 12 18 - -
Foreign exchange gains (79) 8 (1) -
System Fund (31) 4 10 2
Interest attributable to the System Fund (25) - (26) -
Remeasurement losses on contingent purchase consideration 3 - 1 -
_____ _____ _____ _____
Adjusted tax and tax rate 513 (134) 26.1 % 456 (123) 27.0 %
Tax
$m
Tax
rate
Profit before tax
$m
Tax
$m
Tax
rate
Group income statement
633
(164)
25.9 %
472
(125)
26.5 %
Adjust to exclude:
Exceptional items
12
18
-
-
Foreign exchange gains
(79)
8
(1)
-
System Fund
(31)
4
10
2
Interest attributable to the System Fund
(25)
-
(26)
-
Remeasurement losses on contingent purchase consideration
3
-
1
-
_____
_____
_____
_____
Adjusted tax and tax rate
513
(134)
26.1 %
456
(123)
27.0 %
Adjusted earnings per ordinary share reconciliation
6 months ended
30 June
2025 2024
$m $m
Profit available for equity holders 469 347
Adjusting items:
System Fund and reimbursable result (31) 10
Interest attributable to the System Fund (25) (26)
Operating exceptional items 12 -
Remeasurement losses on contingent purchase consideration 3 1
Foreign exchange gains (79) (1)
Tax attributable to the System Fund 4 2
Tax on foreign exchange gains 8 -
Tax on exceptional items (3) -
Exceptional tax 21 -
_____ _____
Adjusted earnings 379 333
Basic weighted average number of ordinary shares (millions) 156.3 163.3
Adjusted earnings per ordinary share (cents) 242.5 203.9
2025
2024
$m
$m
Profit available for equity holders
469
347
Adjusting items:
System Fund and reimbursable result
(31)
10
Interest attributable to the System Fund
(25)
(26)
Operating exceptional items
12
-
Remeasurement losses on contingent purchase consideration
3
1
Foreign exchange gains
(79)
(1)
Tax attributable to the System Fund
4
2
Tax on foreign exchange gains
8
-
Tax on exceptional items
(3)
-
Exceptional tax
21
-
_____
_____
Adjusted earnings
379
333
Basic weighted average number of ordinary shares (millions)
156.3
163.3
Adjusted earnings per ordinary share (cents)
242.5
203.9
PRINCIPAL RISKS AND UNCERTAINTIES
The principal and emerging risks and uncertainties that could significantly
affect IHG's business and results are set out on pages 46 to 51 of the IHG
Annual Report and Form 20-F 2024 (the "Annual Report").
In the first half of 2025, our Board and management have continued to assess
various external and internal trends, including geopolitical tensions,
evolving legislative proposals and cyber threats, to evaluate their potential
impact on our reported principal risks and uncertainties.
The following summarises the key areas of risk and uncertainty related to the
achievement of our strategic priorities for 2025-27, as outlined in the 2024
Annual Report, which remain relevant as we move into the second half of the
year.
• Guest preferences or loyalty for IHG branded hotel experiences and
channels
• Owner preferences for, or ability to invest in, our brands
• Talent and capability attraction or retention
• Data and information usage, storage, security and transfer
• Ethical and social expectations
• Legal, regulatory and contractual complexity or litigation exposures
• Supply chain efficiency and resilience (including corporate and hotel
products and services)
• Operational resilience to incidents or disruption or control breakdown
(including geopolitical, safety and security, cybersecurity, fraud and
health-related)
• Our ability to deliver technological or digital performance or
innovation (at scale, speed, etc.)
• The impact of climate-related physical and transition risks
These principal and emerging risks and uncertainties are supported by a
broader description of risk factors set out on pages 280 to 287 of the Annual
Report.
RELATED PARTY TRANSACTIONS
There were no material related party transactions during the six months to 30
June 2025
GOING CONCERN
As at 30 June 2025, the Group had total liquidity of $1,915m, comprising
$1,350m of undrawn bank facilities and $565m of cash and cash equivalents (net
of overdrafts and restricted cash). There remains a wide range of possible
planning scenarios over the going concern period. The scenarios considered and
assessment made by the Directors in adopting the going concern basis for
preparing these financial statements are included in note 1 to the Interim
Financial Statements.
Based on the assessment completed, the Directors have a reasonable expectation
that the Group has sufficient resources to continue operating until at least
31 December 2026. Accordingly, they continue to adopt the going concern basis
in preparing the Interim Financial Statements.
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors confirm that to the best of their knowledge:
● The condensed set of Financial Statements has been prepared in accordance with
UK-adopted IAS 34 and the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom's Financial Conduct Authority;
● The interim management report includes a fair review of the important events
during the first six months, and their impact on the financial statements and
a description of the principal risks and uncertainties for the remaining six
months of the year, as required by DTR 4.2.7R; and
● The interim management report includes a fair review of related party
transactions and changes therein, as required by DTR 4.2.8R.
On behalf of the Board
Elie Maalouf Michael Glover
Chief Executive Officer Chief Financial Officer
6 August 2025 6 August 2025
INTERCONTINENTAL HOTELS GROUP PLC
GROUP INCOME STATEMENT
For the six months ended 30 June 2025
2025 2024
6 months ended 6 months ended
30 June 30 June
$m $m
Revenue from fee business 908 850
Revenue from owned & leased hotels 255 247
Revenue from insurance activities 12 11
System Fund and reimbursable revenues 1,344 1,214
_____ _____
Total revenue (notes 3 and 4) 2,519 2,322
Cost of sales and administrative expenses (527) (524)
System Fund and reimbursable expenses (1,313) (1,224)
Insurance expenses (16) (14)
Share of profits of associates and joint ventures 3 2
Other operating income 4 3
Depreciation and amortisation (33) (32)
Impairment loss on financial assets (14) (8)
_____ _____
Operating profit (note 3) 623 525
Operating profit analysed as:
Operating profit before System Fund, reimbursables and 604 535
exceptional items
System Fund and reimbursable result 31 (10)
Operating exceptional items (note 5) (12) -
_____ _____
623 525
Financial income 104 32
Financial expenses (91) (84)
Remeasurement of contingent purchase consideration (3) (1)
_____ _____
Profit before tax 633 472
Tax (note 6) (164) (125)
_____ _____
Profit for the period 469 347
_____ _____
Earnings per ordinary share (note 8) ¯¯¯¯ ¯¯¯¯
Basic 300.1¢ 212.5¢
Diluted 297.2¢ 210.4¢
604
535
System Fund and reimbursable result
31
(10)
Operating exceptional items (note 5)
(12)
-
_____
_____
623
525
Financial income
104
32
Financial expenses
(91)
(84)
Remeasurement of contingent purchase consideration
(3)
(1)
_____
_____
Profit before tax
633
472
Tax (note 6)
(164)
(125)
_____
_____
Profit for the period
469
347
_____
_____
Earnings per ordinary share (note 8)
¯¯¯¯
¯¯¯¯
Basic
300.1¢
212.5¢
Diluted
297.2¢
210.4¢
INTERCONTINENTAL HOTELS GROUP PLC
GROUP STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2025
2025 2024
6 months ended 6 months ended
30 June 30 June
$m $m
Profit for the period 469 347
Other comprehensive loss
Items that may be subsequently reclassified to profit or loss:
Gains/(losses) on cash flow hedges, including related tax credit 163 (61)
of $4m (2024: $1m charge)
Gains/(losses) on net investment hedges 42 (3)
Costs of hedging 5 -
Hedging (gains)/losses reclassified to financial expenses (179) 64
Exchange losses on retranslation of foreign operations, including related tax (156) (7)
charge of $2m (2024: $2m credit)
_____ _____
(125) (7)
Items that will not be reclassified to profit or loss:
Remeasurement gains on defined benefit plans - 2
_____ _____
- 2
_____ _____
Total other comprehensive loss for the period (125) (5)
_____ _____
Total comprehensive income for the period 344 342
_____ _____
¯¯¯¯ ¯¯¯¯
Attributable to:
Equity holders of the parent 344 343
Non-controlling interest - (1)
_____ _____
344 342
_____ _____
¯¯¯¯ ¯¯¯¯
163
(61)
Gains/(losses) on net investment hedges
42
(3)
Costs of hedging
5
-
Hedging (gains)/losses reclassified to financial expenses
(179)
64
Exchange losses on retranslation of foreign operations, including related tax
charge of $2m (2024: $2m credit)
(156)
(7)
_____
_____
(125)
(7)
Items that will not be reclassified to profit or loss:
Remeasurement gains on defined benefit plans
-
2
_____
_____
-
2
_____
_____
Total other comprehensive loss for the period
(125)
(5)
_____
_____
Total comprehensive income for the period
344
342
_____
_____
¯¯¯¯
¯¯¯¯
Attributable to:
Equity holders of the parent
344
343
Non-controlling interest
-
(1)
_____
_____
344
342
_____
_____
¯¯¯¯
¯¯¯¯
INTERCONTINENTAL HOTELS GROUP PLC
GROUP STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2025
6 months ended 30 June 2025
Equity share capital Other reserves* Retained earnings Non- controlling Total
interest equity
$m $m $m $m $m
At beginning of the period 137 (2,483) 34 4 (2,308)
Total comprehensive income for the period - (125) 469 - 344
Repurchase of shares, including taxes and transaction costs (1) 1 (531) - (531)
Transfer of treasury shares to employee share trusts - (1) 1 - -
Release of own shares by employee share trusts - 52 (52) - -
Equity-settled share-based cost - - 36 - 36
Tax related to share schemes - - (1) - (1)
Equity dividends paid - - (180) - (180)
Exchange adjustments 13 (13) - - -
_____ _____ _____ _____ _____
At end of the period 149 (2,569) (224) 4 (2,640)
_____ _____ _____ _____ _____
¯¯¯¯ ¯¯¯¯ ¯¯¯¯ ¯¯¯¯ ¯¯¯¯
Total
equity
$m
$m
$m
$m
$m
At beginning of the period
137
(2,483)
34
4
(2,308)
Total comprehensive income for the period
-
(125)
469
-
344
Repurchase of shares, including taxes and transaction costs
(1)
1
(531)
-
(531)
Transfer of treasury shares to employee share trusts
-
(1)
1
-
-
Release of own shares by employee share trusts
-
52
(52)
-
-
Equity-settled share-based cost
-
-
36
-
36
Tax related to share schemes
-
-
(1)
-
(1)
Equity dividends paid
-
-
(180)
-
(180)
Exchange adjustments
13
(13)
-
-
-
_____
_____
_____
_____
_____
At end of the period
149
(2,569)
(224)
4
(2,640)
_____
_____
_____
_____
_____
¯¯¯¯
¯¯¯¯
¯¯¯¯
¯¯¯¯
¯¯¯¯
6 months ended 30 June 2024
Equity share capital Other reserves* Retained earnings Non- controlling Total
interest equity
$m $m $m $m $m
At beginning of the period 141 (2,487) 396 4 (1,946)
Total comprehensive income for the period - (6) 349 (1) 342
Repurchase of shares, including transaction costs (1) 1 (452) - (452)
Purchase of own shares by employee share trusts - (10) - - (10)
Release of own shares by employee share trusts - 28 (28) - -
Equity-settled share-based cost - - 30 - 30
Tax related to share schemes - - 7 - 7
Equity dividends paid - - (172) - (172)
Exchange adjustments (1) 1 - - -
_____ _____ _____ _____ _____
At end of the period 139 (2,473) 130 3 (2,201)
_____ _____ _____ _____ _____
¯¯¯¯ ¯¯¯¯ ¯¯¯¯ ¯¯¯¯ ¯¯¯¯
Total
equity
$m
$m
$m
$m
$m
At beginning of the period
141
(2,487)
396
4
(1,946)
Total comprehensive income for the period
-
(6)
349
(1)
342
Repurchase of shares, including transaction costs
(1)
1
(452)
-
(452)
Purchase of own shares by employee share trusts
-
(10)
-
-
(10)
Release of own shares by employee share trusts
-
28
(28)
-
-
Equity-settled share-based cost
-
-
30
-
30
Tax related to share schemes
-
-
7
-
7
Equity dividends paid
-
-
(172)
-
(172)
Exchange adjustments
(1)
1
-
-
-
_____
_____
_____
_____
_____
At end of the period
139
(2,473)
130
3
(2,201)
_____
_____
_____
_____
_____
¯¯¯¯
¯¯¯¯
¯¯¯¯
¯¯¯¯
¯¯¯¯
*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
30 June 2025
2025 2024
30 June 31 December
$m $m
ASSETS
Goodwill and other intangible assets 1,172 1,042
Property, plant and equipment 149 146
Right-of-use assets 268 276
Investment in associates and joint ventures 58 51
Retirement benefit assets 3 3
Other financial assets 214 212
Derivative financial instruments 174 4
Deferred compensation plan investments 299 286
Non-current other receivables 25 35
Deferred tax assets 120 122
Contract costs 98 90
Contract assets 697 612
_____ _____
Total non-current assets 3,277 2,879
_____ _____
Inventories 4 4
Trade and other receivables 942 785
Current tax receivable 48 22
Other financial assets 8 7
Cash and cash equivalents 611 1,008
Contract costs 5 5
Contract assets 43 38
_____ _____
Total current assets 1,661 1,869
_____ _____
Total assets 4,938 4,748
_____ _____
LIABILITIES ¯¯¯¯ ¯¯¯¯
Loans and other borrowings (447) (398)
Lease liabilities (27) (26)
Trade and other payables (715) (650)
Deferred revenue (841) (766)
Provisions (27) (22)
Insurance liabilities (15) (14)
Tax payable (25) (52)
_____ _____
Total current liabilities (2,097) (1,928)
_____ _____
Loans and other borrowings (3,249) (2,876)
Lease liabilities (379) (388)
Derivative financial instruments (6) (78)
Retirement benefit obligations (69) (68)
Deferred compensation plan liabilities (299) (286)
Trade and other payables (64) (78)
Deferred revenue (1,334) (1,294)
Provisions (18) (17)
Insurance liabilities (26) (25)
Deferred tax liabilities (25) (18)
Tax payable (12) -
_____ _____
Total non-current liabilities (5,481) (5,128)
_____ _____
Total liabilities (7,578) (7,056)
_____ _____
¯¯¯¯ ¯¯¯¯
Net liabilities (2,640) (2,308)
_____ _____
EQUITY ¯¯¯¯ ¯¯¯¯
IHG shareholders' equity (2,644) (2,312)
Non-controlling interest 4 4
_____ _____
Total equity (2,640) (2,308)
_____ _____
¯¯¯¯ ¯¯¯¯
INTERCONTINENTAL HOTELS GROUP PLC
GROUP STATEMENT OF CASH FLOWS
For the six months ended 30 June 2025
2025 2024
6 months ended 6 months ended
30 June 30 June
$m $m
Profit for the period 469 347
Adjustments reconciling profit for the period to cash flow from 74 (13)
operations (note 9)
_____ _____
Cash flow from operations 543 334
Interest paid (67) (58)
Interest received 19 29
Deferred purchase consideration paid - (3)
Tax paid (183) (140)
_____ _____
Net cash from operating activities 312 162
_____ _____
Cash flow from investing activities
Purchase of property, plant and equipment (11) (14)
Purchase of brands (120) -
Purchase of other intangible assets (21) (22)
Investment in associates and joint ventures (5) -
Investment in other financial assets (3) (21)
Deferred purchase consideration paid - (10)
Repayments of other financial assets 8 9
Finance lease receipts 2 -
Other investing cash flows 3 -
_____ _____
Net cash from investing activities (147) (58)
_____ _____
Cash flow from financing activities
Repurchase of shares, including transaction costs (425) (367)
Purchase of own shares by employee share trusts - (10)
Dividends paid to shareholders (note 7) (180) (172)
Principal element of lease payments (15) (16)
Other financing cash flows 6 -
_____ _____
Net cash from financing activities (614) (565)
_____ _____
Net movement in cash and cash equivalents, net of overdrafts, (449) (461)
in the period
Cash and cash equivalents, net of overdrafts, at beginning of the period 991 1,278
Exchange rate effects 47 (20)
_____ _____
Cash and cash equivalents, net of overdrafts, at end of the period 589 797
_____ _____
¯¯¯¯ ¯¯¯¯
74
(13)
_____
_____
Cash flow from operations
543
334
Interest paid
(67)
(58)
Interest received
19
29
Deferred purchase consideration paid
-
(3)
Tax paid
(183)
(140)
_____
_____
Net cash from operating activities
312
162
_____
_____
Cash flow from investing activities
Purchase of property, plant and equipment
(11)
(14)
Purchase of brands
(120)
-
Purchase of other intangible assets
(21)
(22)
Investment in associates and joint ventures
(5)
-
Investment in other financial assets
(3)
(21)
Deferred purchase consideration paid
-
(10)
Repayments of other financial assets
8
9
Finance lease receipts
2
-
Other investing cash flows
3
-
_____
_____
Net cash from investing activities
(147)
(58)
_____
_____
Cash flow from financing activities
Repurchase of shares, including transaction costs
(425)
(367)
Purchase of own shares by employee share trusts
-
(10)
Dividends paid to shareholders (note 7)
(180)
(172)
Principal element of lease payments
(15)
(16)
Other financing cash flows
6
-
_____
_____
Net cash from financing activities
(614)
(565)
_____
_____
Net movement in cash and cash equivalents, net of overdrafts,
in the period
(449)
(461)
Cash and cash equivalents, net of overdrafts, at beginning of the period
991
1,278
Exchange rate effects
47
(20)
_____
_____
Cash and cash equivalents, net of overdrafts, at end of the period
589
797
_____
_____
¯¯¯¯
¯¯¯¯
INTERCONTINENTAL HOTELS GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS
1. Basis of preparation
These condensed interim financial statements have been prepared in accordance
with the Disclosure Guidance and Transparency Rules of the United Kingdom's
Financial Conduct Authority and UK-adopted IAS 34 'Interim Financial
Reporting'. They have been prepared on a consistent basis using the same
accounting policies and methods of computation set out in the InterContinental
Hotels Group PLC ('the Group' or 'IHG') Annual Report and Form 20-F for the
year ended 31 December 2024.
These condensed interim financial statements are unaudited and do not
constitute statutory accounts of the Group within the meaning of Section 435
of the Companies Act 2006. The auditors have carried out a review of the
financial information in accordance with the guidance contained in ISRE (UK)
2410 'Review of Interim Financial Information Performed by the Independent
Auditor of the Entity' issued by the Financial Reporting Council.
Financial information for the year ended 31 December 2024 has been extracted
from the Group's published financial statements for that year which were
prepared in accordance with UK-adopted international accounting standards and
with applicable law and regulations and which have been filed with the
Registrar of Companies. The report of the auditor was unqualified 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.
There are no changes in the Group's critical judgements, estimates and
assumptions from those disclosed in the 2024 Annual Report and Form 20-F.
Going concern
The period to 31 December 2026 has been used to complete the going concern
assessment.
In adopting the going concern basis for preparing the condensed interim
financial statements, the Directors have considered a 'Base Case' scenario, as
prepared by management, which assumes continued growth in RevPAR in 2025 and
2026 in line with market expectations in each of our regions. The assumptions
applied in the Base Case scenario are consistent with those used for Group
planning purposes, for impairment testing (impairment tests adjusted for
factors specific to individual properties or portfolios) and for assessing
recoverability of deferred tax assets.
The Directors have also reviewed a 'Severe Downside Case' which is based on a
severe but plausible scenario equivalent to the market conditions experienced
through the 2008/2009 global financial crisis. This assumes that trading
performance during the second half of 2025 starts to worsen and then RevPAR
decreases significantly by 17% in 2026.
Alarge number of the Group's principal risks would result in an impact on
RevPAR which is one of the sensitivities assessed against the headroom
available in the Base Case and Severe Downside Case scenarios. Climate risks
are not considered to have a significant impact over the period assessed.
Other principal risks that could result in a large one-off incident that has a
material impact on cash flow have also been considered, for example a
cybersecurity event.
The Group's revolving credit facility of $1,350m matures in 2029. The Group's
key covenant requires net debt:EBITDA below 4.0x. See note 10 for additional
information. There are two bond maturities in the period under consideration,
the £300m bond in August 2025 and the £350m bond in August 2026. The Base
Case assumes new funding is completed in 2025 and 2026 for refinancing
purposes. The Severe Downside Case has been modelled with no additional
funding.
Under the Base Case and Severe Downside Case covenants are not breached and
there is significant headroom to the covenants to absorb multiple additional
risks and uncertainties. The Directors also reviewed several actions that
could be taken, if required, to reduce discretionary spend, creating
substantial additional headroom to the covenants.
The Directors reviewed a reverse stress test scenario to determine what
decrease in RevPAR would create a breach of the covenants. The Directors
concluded that it was very unlikely that a single risk or combination of the
risks considered could create the sustained RevPAR impact required, except for
asignificant global event.
Having reviewed these scenarios, the Directors have a reasonable expectation
that the Group has sufficient resources to continue operating until at least
31 December 2026. Accordingly, they continue to adopt the going concern basis
in preparing these condensed interim financial statements.
2. Exchange rates
30 June 30 June 30 June 31 December
2025 2025 2024 2024
Average Closing Average Closing
$1 equivalent
Sterling £0.77 £0.73 £0.79 £0.80
Euro €0.92 €0.85 €0.92 €0.96
3. Segmental information
Revenue 2025 2024
6 months ended 6 months ended
30 June 30 June
$m $m
Americas 561 561
EMEAA 368 347
Greater China 76 77
Central 170 123
_____ _____
Revenue from reportable segments 1,175 1,108
System Fund and reimbursable revenues 1,344 1,214
_____ _____
Total revenue 2,519 2,322
_____ _____
¯¯¯¯ ¯¯¯¯
Profit 2025 2024
6 months ended 6 months ended
30 June 30 June
$m $m
Americas 415 413
EMEAA 128 119
Greater China 44 43
Central 17 (40)
_____ _____
Operating profit from reportable segments 604 535
System Fund and reimbursable result 31 (10)
Operating exceptional items (note 5) (12) -
_____ _____
Operating profit 623 525
Net financial income/(expenses) 13 (52)
Remeasurement of contingent purchase consideration (3) (1)
_____ _____
Profit before tax 633 472
_____ _____
¯¯¯¯ ¯¯¯¯
4. Revenue
6 months ended 30 June 2025
Americas EMEAA Greater China Central Group
$m $m $m $m $m
Franchise and base management fees 468 137 60 - 665
Incentive management fees 7 62 16 - 85
Central revenue - - - 158 158
_____ _____ _____ _____ _____
Revenue from fee business 475 199 76 158 908
Revenue from owned & leased hotels 86 169 - - 255
Revenue from insurance activities - - - 12 12
_____ _____ _____ _____ _____
561 368 76 170 1,175
System Fund revenues 832
Reimbursable revenues 512
_____
Total revenue 2,519
_____
¯¯¯¯
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 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.
6 months ended 30 June 2024
Americas EMEAA Greater Central Group
China
$m $m $m $m $m
Franchise and base management fees 471 128 58 - 657
Incentive management fees 7 55 19 - 81
Central revenue - - - 112 112
_____ _____ _____ _____ _____
Revenue from fee business 478 183 77 112 850
Revenue from owned & leased hotels 83 164 - - 247
Revenue from insurance activities - - - 11 11
_____ _____ _____ _____ _____
561 347 77 123 1,108
System Fund revenues 739
Reimbursable revenues 475
_____
Total revenue 2,322
_____
¯¯¯¯
Central
Group
$m
$m
$m
$m
$m
Franchise and base management fees
471
128
58
-
657
Incentive management fees
7
55
19
-
81
Central revenue
-
-
-
112
112
_____
_____
_____
_____
_____
Revenue from fee business
478
183
77
112
850
Revenue from owned & leased hotels
83
164
-
-
247
Revenue from insurance activities
-
-
-
11
11
_____
_____
_____
_____
_____
561
347
77
123
1,108
System Fund revenues
739
Reimbursable revenues
475
_____
Total revenue
2,322
_____
¯¯¯¯
5. Exceptional items
2025 2024
6 months ended 6 months ended
30 June 30 June
$m $m
Cost of Sales and administrative expenses:
Commercial litigation and disputes (9) -
Global efficiency programme (3) -
_____ _____
(12) -
_____ _____
Operating exceptional items (12) -
_____ _____
¯¯¯¯ ¯¯¯¯
Tax on operating exceptional items 3 -
Exceptional tax (21) -
_____ _____
Tax (18) -
_____ _____
¯¯¯¯ ¯¯¯¯
Commercial litigation and disputes
Relates to the EMEAA region and includes legal costs. The costs are presented
as exceptional reflecting the quantum of the costs and the nature of disputes.
Global efficiency programme
Comprises costs incurred in the ongoing delivery of a global efficiency
programme, designed to achieve incremental cost base efficiencies and
effectiveness. Further exceptional costs are expected in the second half of
2025. The costs are presented as exceptional because they relate to a
comprehensive programme and therefore do not reflect normal, ongoing costs of
the business. An additional $4m was charged to the System Fund for the six
months to 30 June 2025.
Tax on operating exceptional items
Comprises current and deferred tax credits totalling $2m relating to
commercial disputes and a further $1m current tax credit relating to global
efficiency programme costs.
Exceptional tax
Comprises a deferred tax charge following the completion of an intra-group
restructuring transaction, which otherwise has had no impact on the
consolidated financial statements. The charge is presented as exceptional due
to its size and the non-recurring nature.
6. Tax
2025 2024
6 months ended 6 months ended
30 June 30 June
$m $m
2025
$m
Current tax 154 140
Deferred tax 10 (15)
_____ _____
Tax charge 164 125
_____ _____
¯¯¯¯ ¯¯¯¯
Further analysed as:
UK tax 24 14
Foreign tax 140 111
_____ _____
164 125
_____ _____
¯¯¯¯ ¯¯¯¯
The deferred tax asset has reduced to $120m (31 December 2024: $122m) in the
period and comprises $95m (31 December 2024: $99m) in the UK and $25m
(31 December 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, with no significant change to its recovery
period to that disclosed within the 2024 Annual Report and Form 20-F.
Tax has been calculated by first applying a blended effective tax rate of 26%
(2024: 27%) to the Group's profits excluding those in respect of the System
Fund, exceptional items, foreign exchange gains and losses, and movements in
contingent consideration. Added to this are any taxes arising in respect of
the actual results of the System Fund, exceptional items, foreign exchange
gains and losses and movements in contingent consideration.
The blended effective rate applied to the Group's profits represents the
weighting of the annual effective tax rates of the Group's key territories
using corporate income tax rates and laws substantively enacted at 30 June
2025 to provide the best estimate for the full financial year.
On 4 July 2025, the One Big Beautiful Bill Act was substantively enacted in
the US. Amongst other things, the Act permanently extends certain tax
provisions that otherwise would have expired in future years and provides
additional flexibility to the timing of when a tax deduction is available for
certain Research and Development expenditures and depreciation. The Group is
analysing the impact of the Act but at the current time does not expect it to
have a significant impact to its total tax charge.
Current tax
154
140
Deferred tax
10
(15)
_____
_____
Tax charge
164
125
_____
_____
¯¯¯¯
¯¯¯¯
Further analysed as:
UK tax
24
14
Foreign tax
140
111
_____
_____
164
125
_____
_____
¯¯¯¯
¯¯¯¯
The deferred tax asset has reduced to $120m (31 December 2024: $122m) in the
period and comprises $95m (31 December 2024: $99m) in the UK and $25m
(31 December 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, with no significant change to its recovery
period to that disclosed within the 2024 Annual Report and Form 20-F.
Tax has been calculated by first applying a blended effective tax rate of 26%
(2024: 27%) to the Group's profits excluding those in respect of the System
Fund, exceptional items, foreign exchange gains and losses, and movements in
contingent consideration. Added to this are any taxes arising in respect of
the actual results of the System Fund, exceptional items, foreign exchange
gains and losses and movements in contingent consideration.
The blended effective rate applied to the Group's profits represents the
weighting of the annual effective tax rates of the Group's key territories
using corporate income tax rates and laws substantively enacted at 30 June
2025 to provide the best estimate for the full financial year.
On 4 July 2025, the One Big Beautiful Bill Act was substantively enacted in
the US. Amongst other things, the Act permanently extends certain tax
provisions that otherwise would have expired in future years and provides
additional flexibility to the timing of when a tax deduction is available for
certain Research and Development expenditures and depreciation. The Group is
analysing the impact of the Act but at the current time does not expect it to
have a significant impact to its total tax charge.
7. Dividends and shareholder returns
2025 2024
6 months ended 6 months ended
30 June 30 June
cents per share $m cents per share $m
Paid during the period 114.4 180 104.0 172
_____ _____ _____ _____
Declared for the interim period 58.6 90 53.2 85
_____ _____ _____ _____
¯¯¯¯ ¯¯¯¯ ¯¯¯¯ ¯¯¯¯
Following completion of the $800m share buyback programme in 2024, in February
2025 the Board approved a further $900m share buyback programme to be
completed in 2025. The Company's authority to repurchase shares was renewed by
the shareholders at the Annual General Meeting held on 8 May 2025.
In the six months to 30 June 2025, 3.8m shares were repurchased for total
cash consideration of $425m, of which $2m related to transaction costs. Total
liabilities of $106m are recognised within current trade and other payables
for the 2025 share buyback programme, reflecting the unavoidable contractual
cost of shares to be repurchased at 30 June 2025.
Paid during the period
114.4
180
104.0
172
_____
_____
_____
_____
Declared for the interim period
58.6
90
53.2
85
_____
_____
_____
_____
¯¯¯¯
¯¯¯¯
¯¯¯¯
¯¯¯¯
Following completion of the $800m share buyback programme in 2024, in February
2025 the Board approved a further $900m share buyback programme to be
completed in 2025. The Company's authority to repurchase shares was renewed by
the shareholders at the Annual General Meeting held on 8 May 2025.
In the six months to 30 June 2025, 3.8m shares were repurchased for total
cash consideration of $425m, of which $2m related to transaction costs. Total
liabilities of $106m are recognised within current trade and other payables
for the 2025 share buyback programme, reflecting the unavoidable contractual
cost of shares to be repurchased at 30 June 2025.
8. Earnings per ordinary share
2025 2024
6 months ended 6 months ended
30 June 30 June
Basic earnings per ordinary share
Profit available for equity holders ($m) 469 347
Basic weighted average number of ordinary shares (millions) 156.3 163.3
Basic earnings per ordinary share (cents) 300.1 212.5
_____ _____
¯¯¯¯ ¯¯¯¯
Diluted earnings per ordinary share
Profit available for equity holders ($m) 469 347
Diluted weighted average number of ordinary shares (millions) 157.8 164.9
Diluted earnings per ordinary share (cents) 297.2 210.4
_____ _____
¯¯¯¯ ¯¯¯¯
Diluted weighted average number of ordinary shares is calculated as:
2025 2024
millions millions
Basic weighted average number of ordinary shares 156.3 163.3
Dilutive potential ordinary shares 1.5 1.6
_____ _____
157.8 164.9
_____ _____
¯¯¯¯ ¯¯¯¯
9. Reconciliation of profit for the period to cash flow from operations
2025 2024
6 months ended 6 months ended
30 June 30 June
$m $m
Profit for the period 469 347
Adjustments for:
Net financial (income)/expenses (13) 52
Remeasurement of contingent purchase consideration 3 1
Income tax charge 164 125
Operating profit adjustments:
Impairment loss on financial assets 14 8
Operating exceptional items 12 -
Depreciation and amortisation 33 32
_____ _____
59 40
Contract assets deduction in revenue 23 16
Share-based payments cost 24 21
Share of profits of associates and joint ventures (3) (2)
_____ _____
44 35
System Fund adjustments:
Depreciation and amortisation 40 40
Impairment loss on financial assets 12 8
Share-based payments cost 13 13
Share of losses of associates 1 1
_____ _____
66 62
Working capital and other adjustments:
Increase in deferred revenue 113 104
Changes in working capital (271) (348)
_____ _____
(158) (244)
Cash flows relating to operating exceptional items (4) 10
Contract acquisition costs, net of repayments (87) (94)
_____ _____
Total adjustments 74 (13)
_____ _____
Cash flow from operations 543 334
_____ _____
¯¯¯¯ ¯¯¯¯
In the six months to 30 June 2025, increase in deferred revenue includes $37m
of initial upfront payments received in relation to co-branding agreements
which will be recognised over the term of those agreements.
10. Net debt
2025 2024
30 June 31 December
$m $m
Cash and cash equivalents 611 1,008
Loans and other borrowings - current (447) (398)
Loans and other borrowings - non-current (3,249) (2,876)
Lease liabilities - current (27) (26)
Lease liabilities - non-current (379) (388)
Principal amounts payable on maturity of derivative financial instruments 130 (102)
_____ _____
Net debt* (3,361) (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 $22m bank overdrafts (31 December 2024: $17m). Cash and cash
equivalents includes $24m (31 December 2024: $22m) with restrictions on use.
Revolving Credit Facility ('RCF')
The revolving credit facility matures in 2029. A variable rate of interest is
payable on amounts drawn. There were no amounts drawn as at 30 June 2025 or
31 December 2024.
The RCF contains two financial covenants: interest cover (Covenant EBITDA:
Covenant interest payable) of greater than 3.5 and a leverage ratio (Covenant
net debt: Covenant EBITDA) of less than 4.0. These are tested at 30 June and
31 December on a trailing 12-month basis.
2025 2024
30 June 31 December
Covenant EBITDA ($m) 1,265 1,195
Covenant net debt ($m) 3,385 2,804
Covenant interest payable ($m) 140 123
Leverage 2.68 2.35
Interest cover 9.04 9.72
2025
2024
30 June
31 December
Covenant EBITDA ($m)
1,265
1,195
Covenant net debt ($m)
3,385
2,804
Covenant interest payable ($m)
140
123
Leverage
2.68
2.35
Interest cover
9.04
9.72
Financial income and expenses
Net financial income for the six months to 30 June 2025 of $13m (2024:
expenses of $52m) includes foreign exchange gains of $79m (2024: $1m). In
2025, the foreign exchange gain is included within financial income in the
Group income statement.
11. Movement in net debt
2025 2024
6 months ended 6 months ended
30 June 30 June
Re-presented**
$m $m
Net decrease in cash and cash equivalents, net of overdrafts (449) (461)
Add back financing cash flows in respect of other components of net debt:
Principal element of lease payments 15 16
_____ _____
Increase in net debt arising from cash flows (434) (445)
Other movements:
Lease liabilities (4) (27)
Increase in accrued interest (43) (33)
Exchange adjustments (96) (3)
Other adjustments (2) (2)
_____ _____
(145) (65)
_____ _____
Increase in net debt (579) (510)
Net debt at beginning of the period (2,782) (2,272)
_____ _____
Net debt* at end of the period (3,361) (2,782)
_____ _____
¯¯¯¯ ¯¯¯¯
* See 'Key performance measures and non-GAAP measures' section in the interim
management report.
** Exchange and other adjustments now presented separately
12. Ruby brand acquisition
On 17 February 2025, the Group completed the acquisition of the Ruby brand and
related intellectual property ("Ruby brand"). The transaction is accounted for
as an asset acquisition.
The Ruby brand has been recognised as an indefinite lived intangible asset at
cost of $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 income
statement. See note 13.
13. Financial instruments
Accounting classification and fair value hierarchy
Hierarchy of fair value measurement Fair Amortised cost Not categorised as a financial instrument Total
value
$m $m $m $m
Financial assets
Other financial assets 1,3 167 55 - 222
Cash and cash equivalents 1 204 407 - 611
Derivative financial instruments 2 174 - - 174
Deferred compensation plan investments 1 299 - - 299
Trade and other receivables - - 845 122 967
Financial liabilities
Derivative financial instruments 2 (6) - - (6)
Deferred compensation plan liabilities 1 (299) - - (299)
Loans and other borrowings - - (3,696) - (3,696)
Trade and other payables 3 (75) (635) (69) (779)
Amortised cost
Not categorised as a financial instrument
Total
$m
$m
$m
$m
Financial assets
Other financial assets
1,3
167
55
-
222
Cash and cash equivalents
1
204
407
-
611
Derivative financial instruments
2
174
-
-
174
Deferred compensation plan investments
1
299
-
-
299
Trade and other receivables
-
-
845
122
967
Financial liabilities
Derivative financial instruments
2
(6)
-
-
(6)
Deferred compensation plan liabilities
1
(299)
-
-
(299)
Loans and other borrowings
-
-
(3,696)
-
(3,696)
Trade and other payables
3
(75)
(635)
(69)
(779)
Other financial assets measured at fair value comprise $38m categorised as
level 1 and $129m as level 3.
There were no transfers between Level 1 and Level 2 fair value measurements
during the period and no transfers into or out of Level 3.
Level 3 reconciliation
Other financial assets Trade and other payables
$m $m
At 1 January 2025 126 (73)
Additions - -
Unrealised changes in fair value 3 (2)
Repayments and disposals - -
_____ _____
At 30 June 2025 129 (75)
_____ _____
¯¯¯¯ ¯¯¯¯
Valuation techniques
The valuation techniques and types of input applied by the Group for the six
months ended 30 June 2025, other than those set out below in respect of the
Ruby brand acquisition, are consistent with those disclosed within the 2024
Annual Report and Form 20-F. Changes in reported amounts are primarily caused
by payments made and received, changes in market inputs (such as discount
rates) and the impact of the time value of money.
Other financial assets - Equity securities and loan assets
Equity securities measured at fair value and categorised as level 3 total $96m
(31 December 2024: $95m), of which $87m are classified as fair value through
other comprehensive income and $9m as fair value through profit or loss. The
significant unobservable inputs used to determine the fair value of unquoted
equity securities are RevPAR growth, pre-tax discount rate (which ranged from
6.4% to 10.0%) and a non-marketability factor (which ranged from 20.0% to
30.0%). There is no material sensitivity arising from changes in assumptions.
Loans assets totalling $33m (31 December 2024: $31m) do not meet the criteria
to be measured at amortised cost and are therefore measured at fair value
through profit or loss. The amount recognised is the discounted value of the
total expected amount receivable, discounted using unobservable interest rates
for loans with similar term and risk. There is no significant sensitivity
arising from changes in interest rates.
Trade and other payables - Contingent purchase consideration
Trade and other payables classified as fair value through profit and loss
relates to contingent purchase consideration on business combinations. It
comprises the present value of the expected amounts payable on exercise of put
and call options to acquire the remaining 49% shareholding in Regent. The
significant unobservable inputs are the projected trailing revenues and the
date of exercising the options. These assumptions are unchanged from those set
out in the 2024 Annual Report and Form 20-F. If the annual trailing revenues
were to exceed the floor by 10%, the amount of the contingent purchase
consideration recognised would increase by $8m. If the date for exercising the
options is assumed to be 2033, the amount of the undiscounted contingent
purchase consideration would be $86m.
Trade and other payables measured at amortised cost includes contingent
purchase consideration on asset acquisitions of $18m (31 December 2024:
$nil). It comprises the present value of the expected amounts payable,
contingent on the number of Ruby branded rooms operated by the seller at the
end of 2029 and 2034 (see note 12). The range of possible undiscounted
payments is nil to €181m ($213m). The liability is subject to remeasurement
at each reporting date, discounted at the rate determined on acquisition. The
significant unobservable input is the expected number of rooms operated by the
seller at 31 December 2029 and 2034. If the expected room count were to
increase or decrease by 25%, the amount of contingent consideration at 30 June
2025 would increase/decrease by $22m and $18m, respectively.
Changes in the value of contingent purchase consideration are recognised on
the face of the income statement below operating profit.
Trade and other payables - Contingent purchase consideration
Trade and other payables classified as fair value through profit and loss
relates to contingent purchase consideration on business combinations. It
comprises the present value of the expected amounts payable on exercise of put
and call options to acquire the remaining 49% shareholding in Regent. The
significant unobservable inputs are the projected trailing revenues and the
date of exercising the options. These assumptions are unchanged from those set
out in the 2024 Annual Report and Form 20-F. If the annual trailing revenues
were to exceed the floor by 10%, the amount of the contingent purchase
consideration recognised would increase by $8m. If the date for exercising the
options is assumed to be 2033, the amount of the undiscounted contingent
purchase consideration would be $86m.
Trade and other payables measured at amortised cost includes contingent
purchase consideration on asset acquisitions of $18m (31 December 2024:
$nil). It comprises the present value of the expected amounts payable,
contingent on the number of Ruby branded rooms operated by the seller at the
end of 2029 and 2034 (see note 12). The range of possible undiscounted
payments is nil to €181m ($213m). The liability is subject to remeasurement
at each reporting date, discounted at the rate determined on acquisition. The
significant unobservable input is the expected number of rooms operated by the
seller at 31 December 2029 and 2034. If the expected room count were to
increase or decrease by 25%, the amount of contingent consideration at 30 June
2025 would increase/decrease by $22m and $18m, respectively.
Changes in the value of contingent purchase consideration are recognised on
the face of the income statement below operating profit.
Fair value of other financial instruments
The Group also holds a number of financial instruments which are not measured
at fair value in the Group statement of financial position. With the exception
of the Group's bonds, their fair values are not materially different to their
carrying amounts, since the interest receivable or payable is either close to
current market rates or the instruments are short-term in nature. The Group's
bonds, which are classified as Level 1 fair value measurements, have a
carrying value of $3,674m and a fair value of $3,604m.
Other than contingent purchase consideration relating to the Ruby brand which
was initially measured at fair value on acquisition (see note 12), the Group
did not measure any financial assets or liabilities at fair value on a
non-recurring basis at 30 June 2025.
14. Commitments, contingencies and guarantees
At 30 June 2025, the amount contracted for but not provided for in the
financial statements for expenditure on property, plant and equipment and
intangible assets was $5m (31 December 2024: $8m).
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. These legal claims and proceedings are in various stages and
include disputes related to specific hotels where the potential materiality is
not yet known; such proceedings, either individually or in the aggregate, have
not in the recent past and are not likely to have a significant effect on the
Group's financial position or profitability.
The Group has issued financial guarantee contracts of up to $31m (31 December
2024: $31m). The carrying amount of these guarantees was $nil in all periods
presented.
INDEPENDENT REVIEW REPORT TO INTERCONTINENTAL HOTELS GROUP PLC
REPORT ON THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Our conclusion
We have reviewed InterContinental Hotels Group PLC's condensed consolidated
interim financial statements (the "interim financial statements") in the Half
Year Results of InterContinental Hotels Group PLC for the 6 month period ended
30 June 2025 (the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
● the group statement of financial position as at 30 June 2025;
● the group income statement and the group statement of comprehensive
income for the period then ended;
● the group statement of cash flows for the period then ended;
● the group statement of changes in equity for the period then ended;
and
● the explanatory notes to the interim financial statements.
The interim financial statements included in the Half Year Results of
InterContinental Hotels Group PLC have been prepared in accordance with UK
adopted International Accounting Standard 34, 'Interim Financial Reporting'
and the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the Half Year Results and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
RESPONSIBILITIES FOR THE INTERIM FINANCIAL STATEMENTS AND THE REVIEW
Our responsibilities and those of the directors
The Half Year Results, including the interim financial statements, is the
responsibility of, and has been approved by the directors. The directors are
responsible for preparing the Half Year Results in accordance with the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority. In preparing the Half Year Results, including the
interim financial statements, the directors are responsible for assessing the
group's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the group or to
cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the Half Year Results based on our review. Our conclusion,
including our Conclusions relating to going concern, is based on procedures
that are less extensive than audit procedures, as described in the Basis for
conclusion paragraph of this report. This report, including the conclusion,
has been prepared for and only for the company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and for no other purpose. We do not, in
giving this conclusion, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
Birmingham
6 August 2025
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