[6-K] InterContinental Hotels Group Plc Current Report (Foreign Issuer)
Filing Impact
Filing Sentiment
Form Type
6-K
SECURITIES
AND EXCHANGE COMMISSION
Washington
DC 20549
FORM 6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 AND 15d-16
OF
THE
SECURITIES EXCHANGE ACT OF 1934
For 07
August 2025
InterContinental Hotels Group PLC
(Registrant's
name)
1
Windsor Dials, Arthur Road, Windsor, SL4 1RS, United
Kingdom
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form
20-F
Form 40-F
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EXHIBIT
INDEX
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99.1
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Half-year
Report dated 07 August 2025
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Exhibit
No: 99.1
InterContinental Hotels Group PLC
Half Year Results to 30 June 2025
7
August 2025
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Strong performance with operating profit from reportable
segments1 +13% and
Adjusted EPS1 +19%; record
openings; on track to return over $1.1bn to shareholders; confident
in long-term growth drivers
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||||
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6
months ended 30 June
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2025
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2024
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% change
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Underlying1
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% change
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Results
from reportable segments1:
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Revenue1
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$1,175m
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$1,108m
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+6%
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+5%
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Revenue
from fee business1
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$908m
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$850m
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+7%
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+6%
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Operating
profit1
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$604m
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$535m
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+13%
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+12%
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Fee
margin1
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64.7%
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60.8%
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+3.9%pts
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Adjusted
EPS1
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242.5¢
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203.9¢
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+19%
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IFRS results:
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Total
revenue
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$2,519m
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$2,322m
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+8%
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Operating
profit
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$623m
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$525m
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+19%
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Basic
EPS
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300.1¢
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212.5¢
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+41%
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Interim
dividend per share
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58.6¢
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53.2¢
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+10%
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Net
debt1
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$3,361m
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$2,782m
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+21%
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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
RevPAR1 +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
revenue1 $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
margin1 64.7%,
up +3.9%pts, driven by positive operating leverage and step-ups in
ancillary fee streams
● Operating profit from
reportable segments1 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
EPS1 of
242.5¢, up +19%, includes adjusted interest
expense1 of
$91m (2024: $79m), an adjusted tax1 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
flow1 of
$302m (2024: $131m), with the increase partly due to the prior
year's higher spend in the System Fund
● Net
debt1 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 EBITDA1 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
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Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts,
said:
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"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."
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For further information, please contact:
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Investor
Relations:
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Stuart Ford (+44 (0)7823 828 739); Kate Carpenter (+44 (0)7825 655
702);Joe Simpson (+44 (0)7976 862 072)
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Media
Relations:
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Neil
Maidment (+44 (0)7970 668 250); Mike Ward (+44 (0)7795 257
407)
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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:
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UK:
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020 3936 2999
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US:
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646 233 4753
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Other international:
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click here
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Passcode:
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033819
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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.
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Summary of recent trading and outlook
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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.
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Summary of system size and pipeline progress
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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):
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System
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Pipeline
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||||||||
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Openings
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Removalsa
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Net
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Total
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YTD%
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YOY%
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YTD%
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YOY%
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Signings
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Total
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Reported
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Reported
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Adjusteda
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Adjusteda
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Global
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31,372
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(19,850)
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11,522
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998,647
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+1.2%
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+4.6%
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+1.9%
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+5.4%
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51,161
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338,383
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Americas
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9,420
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(15,140)
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(5,720)
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522,274
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-1.1%
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+0.1%
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+0.3%
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+1.5%
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9,487
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105,836
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EMEAA
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11,917
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(2,081)
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9,836
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276,310
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+3.7%
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+10.9%
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+3.7%
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+10.9%
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24,869
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115,312
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Greater China
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10,035
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(2,629)
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7,406
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200,063
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+3.8%
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+8.6%
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+3.8%
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+8.6%
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16,805
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117,235
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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.
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CHIEF EXECUTIVE'S REVIEW
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IHG's strategic priorities
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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.
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Delivering value creation over the medium to long term
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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
revenue1;
● +390bps expansion in fee
margin1;
● >100% conversion of
adjusted earnings1 into
adjusted free cash flow1 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
EPS1 through
the combination of the above.
Within the 390bps fee margin1 expansion,
around 260bps was driven by operational leverage as the growth in
fee revenue1 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 revenue1 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
margin1 expansion
drove a 13% increase in operating profit from reportable segments
to $604m. Adjusted interest expense1 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 tax1 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 5th 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 800th opening
and IHG's 50th 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
|
|
Revenuea
|
|
|
|
|
Americas
|
561
|
561
|
-
|
|
EMEAA
|
368
|
347
|
6.1
|
|
Greater China
|
76
|
77
|
(1.3)
|
|
Central
|
170
|
123
|
38.2
|
|
|
_____
|
_____
|
_____
|
|
Revenue
from reportable segmentsb
|
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 profita
|
|
|
|
|
Americas
|
415
|
413
|
0.5
|
|
EMEAA
|
128
|
119
|
7.6
|
|
Greater China
|
44
|
43
|
2.3
|
|
Central
|
17
|
(40)
|
NMd
|
|
|
_____
|
_____
|
_____
|
|
Operating
profit from reportable segmentsb
|
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)
|
NMd
|
|
|
_____
|
_____
|
_____
|
|
Operating
profit before exceptional items
|
635
|
525
|
21.0
|
|
Operating
exceptional items
|
(12)
|
-
|
NMd
|
|
|
_____
|
_____
|
_____
|
|
Operating profit
|
623
|
525
|
18.7
|
|
|
|
|
|
|
Net
financial income/(expenses)
|
13
|
(52)
|
NMd
|
|
Analysed as:
|
|
|
|
|
Adjusted interest expenseb
|
(91)
|
(79)
|
15.2
|
|
System Fund interest
|
25
|
26
|
(3.8)
|
|
Foreign exchange gains
|
79
|
1
|
NMd
|
|
Remeasurement
of contingent purchase consideration
|
(3)
|
(1)
|
NMd
|
|
|
_____
|
_____
|
_____
|
|
Profit before tax
|
633
|
472
|
34.1
|
|
|
|
|
|
|
Tax
|
(164)
|
(125)
|
31.2
|
|
Analysed as:
|
|
|
|
|
Adjusted taxb
|
(134)
|
(123)
|
8.9
|
|
Tax attributable to System Fund
|
(4)
|
(2)
|
100.0
|
|
Tax on foreign exchange gains
|
(8)
|
-
|
NMd
|
|
Tax on exceptional items and exceptional tax
|
(18)
|
-
|
NMd
|
|
|
_____
|
_____
|
_____
|
|
Profit for the period
|
469
|
347
|
35.2
|
|
|
|
|
|
|
Adjusted earningsc
|
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
|
|
Adjustedb
|
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 segmentsa increased
by $67m (6.0%) to $1,175m, driven by RevPAR growth, system
expansion and the step-ups in ancillary fee streams. Underlying
revenuea increased
by $59m (5.3%) to $1,166m, with underlying fee
revenuea 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 segmentsa 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
profita increased
by $64m (12.0%) to $599m.
Fee margina 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 segmentsa 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 segmentsa when
calculated as restating 2024 figures at 2025 exchange rates, and
negatively impacted operating profit from reportable
segmentsa 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 segmentsa 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 interesta,
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 sharea 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 EBITDAa 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 EBITDAa
|
637
|
567
|
|
|
|
_____
|
_____
|
|
|
CASH FLOW SUMMARY
|
6 months ended 30 June
|
||
|
|
2025
|
2024
|
$m
|
|
|
Re-presentedb
|
|
|
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
Adjusted EBITDAa
|
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 flowa
|
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 debta movements
|
(449)
|
(461)
|
12
|
|
|
|
|
|
|
Add
back principal element of lease repayments
|
15
|
16
|
|
|
Exchange
and other non-cash adjustments
|
(145)
|
(65)
|
|
|
|
_____
|
_____
|
_____
|
|
Increase in net debta
|
(579)
|
(510)
|
(69)
|
|
Net
debta at beginning of
the period
|
(2,782)
|
(2,272)
|
|
|
|
_____
|
_____
|
_____
|
|
Net debta 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 segmentsa 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 flowa
Adjusted free cash flowa was
an inflow of $302m,
an increase of $171m on the prior year.
Adjusted EBITDAa 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 expenditurea
Net capital expenditurea was $85m (2024: $112m)
and gross capital expenditurea was $124m (2024: $151m).
Gross capital expenditurea comprised: $86m of
key money contract acquisition costs; $10m of
maintenance; $9m gross recyclable investments;
and $19m System Fund capital investments. Net capital
expenditurea includes
an offset from $39m System Fund depreciation and
amortisation.
Net debta
Net debta 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 debta 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 revenuea 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
|
Changeb
|
|
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
|
|
|
|
|
Franchisedc (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
(revenue
recognised in Group income statement)
|
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.
RevPARa 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
|
RevPARa movement
at CER vs actual exchange rates (AER)
|
|
Half Year 2025 vs 2024
|
Q2 2025 vs 2024
|
||||
|
|
CER(as above)
|
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
|
|
|
|
|
|
|
Franchiseda
|
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
|
|
|
|
|
|
|
Franchiseda
|
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 segmenta
|
|
|
|
|
Fee
business
|
475
|
478
|
(0.6)
|
|
Owned
& leased
|
86
|
83
|
3.6
|
|
|
_____
|
_____
|
_____
|
|
|
561
|
561
|
0.0
|
|
|
_____
|
_____
|
_____
|
|
Operating profit from the reportable segmenta
|
|
|
|
|
Fee business
|
394
|
392
|
0.5
|
|
Owned
& leased
|
21
|
21
|
0.0
|
|
|
_____
|
_____
|
_____
|
|
|
415
|
413
|
0.5
|
|
Operating
exceptional items
|
(1)
|
-
|
NMb
|
|
|
_____
|
_____
|
_____
|
|
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 segmenta 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 segmenta increased
by $2m (+0.5%) to $415m.
Fee business revenuea 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
profita increased
by $2m (+0.5%) to $394m, supported by system size growth and cost
efficiencies. This led to fee margina 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
|
|
|
|
|
|
|
Franchiseda
|
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
|
|
|
|
|
|
|
Franchiseda
|
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 segmenta
|
|
|
|
|
|
Fee business
|
199
|
183
|
8.7
|
|
|
Owned
& leased
|
169
|
164
|
3.0
|
|
|
|
_____
|
_____
|
_____
|
|
|
|
368
|
347
|
6.1
|
|
|
|
_____
|
_____
|
_____
|
|
|
Operating profit/(loss) from the
reportable segmenta
|
|
|
|
|
|
Fee business
|
131
|
119
|
10.1
|
|
|
Owned
& leased
|
(3)
|
-
|
NMb
|
|
|
|
_____
|
_____
|
_____
|
|
|
|
128
|
119
|
7.6
|
|
|
Operating
exceptional items
|
(10)
|
-
|
NMb
|
|
|
|
_____
|
_____
|
_____
|
|
|
Operating profit
|
118
|
119
|
(0.8)
|
|
|
|
_____
|
_____
|
_____
|
|
|
|
|
|
|
|
|
EMEAA comparable RevPAR
movement on previous year
|
|
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 segmenta 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 segmenta increased
by $9m (+7.6%) to $128m.
Fee business revenuea 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 profita increased
by $12m (+10.1%) to $131m and fee margina 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
|
|
|
|
|
|
|
Franchiseda
|
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
|
|
|
|
|
|
|
Franchiseda
|
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 segmenta
|
|
|
|
|
Fee business
|
76
|
77
|
(1.3)
|
|
|
_____
|
_____
|
_____
|
|
|
76
|
77
|
(1.3)
|
|
|
_____
|
_____
|
_____
|
|
Operating profit from the reportable segmenta
|
|
|
|
|
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)%
|
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 segmenta 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 margina 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
800th opening
and IHG's 50th 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 segmenta
|
|
|
|
|
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 segmenta
|
|
|
|
|
Fee
business
|
21
|
(37)
|
NMb
|
|
Insurance
activities
|
(4)
|
(3)
|
33.3
|
|
|
_____
|
_____
|
_____
|
|
|
17
|
(40)
|
NMb
|
|
Operating
exceptional items
|
(1)
|
-
|
NMb
|
|
|
_____
|
_____
|
_____
|
|
Operating
profit/(loss)
|
16
|
(40)
|
NMb
|
|
|
_____
|
_____
|
_____
|
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 segmentsa 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
segmenta 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
|
NMa
|
|
Operating exceptional items
|
-
|
-
|
NMa
|
|
12
|
-
|
NMa
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
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-presentedc
|
|
|
|
Re-presentedc
|
|
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
|
|
Reportable segments (see above)
|
1,175
|
1,108
|
6.0
|
|
604
|
535
|
12.9
|
|
Significant liquidated damages
|
(7)
|
-
|
NMb
|
|
(7)
|
-
|
NMb
|
|
Owned
& leased asset acquisition and disposala
|
(2)
|
(4)
|
(50.0)
|
|
2
|
3
|
(33.3)
|
|
Currency impact
|
-
|
3
|
NMb
|
|
-
|
(3)
|
NMb
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
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-presentedb
|
|
|
|
Re-presentedb
|
|
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
|
|
Reportable segments fee business (see above)
|
908
|
850
|
6.8
|
|
590
|
517
|
14.1
|
|
Significant liquidated damages
|
(7)
|
-
|
NMa
|
|
(7)
|
-
|
NMa
|
|
Currency impact
|
-
|
(2)
|
NMa
|
|
-
|
(4)
|
NMa
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
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 profita
|
||||
|
|
|
|
|
|
|
|
|
|
|
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)
|
-
|
NMb
|
|
(7)
|
-
|
NMb
|
|
Currency impact
|
-
|
(3)
|
NMb
|
|
-
|
(3)
|
NMb
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
Underlying revenue andunderlying operating profit
|
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 profita
|
||||
|
|
|
|
|
|
|
|
|
|
|
2025
|
2024
|
%
|
|
2025
|
2024
|
%
|
|
|
|
Re-presentedd
|
|
|
|
Re-presentedd
|
|
|
|
$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)
|
-
|
NMb
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
|
368
|
347
|
6.1
|
|
128
|
119
|
7.6
|
|
|
|
|
|
|
|
|
|
|
Reportable segments (see above)
|
368
|
347
|
6.1
|
|
128
|
119
|
7.6
|
|
Owned
& leased acquisition and disposalc
|
(2)
|
(4)
|
(50.0)
|
|
2
|
3
|
(33.3)
|
|
Currency impact
|
-
|
7
|
NMb
|
|
-
|
2
|
NMb
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
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)
|
NMb
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
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 profita
|
||||
|
|
|
|
|
|
|
|
|
|
|
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)
|
NMb
|
|
-
|
(1)
|
NMb
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
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
|
Centrala
|
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
|
Centrala
|
Total
|
|
|
|
Re-presentedb
|
|
|
Re-presentedb
|
|
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-presenteda
|
|
|
||
|
|
$m
|
|
|
|
$m
|
|
|
|
Net cash from investing activities
|
(147)
|
|
|
|
(58)
|
|
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
Contract
acquisition costs, net of repayments
|
(87)
|
|
|
|
(94)
|
|
|
|
System
Fund depreciation and amortisationb
|
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 amortisationb
|
(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
|
|
|
$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)
|
|
|
_____
|
_____
|
Adjusted tax and tax rate reconciliation
|
|
2025
|
2024
|
||||
|
|
Profit
before tax
$m
|
Tax$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
|
|
|
|
|
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 andexceptional items
|
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 creditof
$4m (2024: $1m charge)
|
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
interest
|
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
interest
|
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
fromoperations (note 9)
|
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.A large 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 a
significant 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
China
|
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.
|
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 $106m
are recognised within current trade and other payables for the 2025
share buyback programme, reflecting the unavoidable contractual
cost of shares to be repurchased at 30 June 2025.
|
8.
|
Earnings per ordinary share
|
|
|
|
|
|
2025
|
2024
|
|
|
|
6 months ended
|
6 months ended
|
|
|
|
30 June
|
30 June
|
|
|
Basic earnings per ordinary share
|
|
|
|
|
Profit
available for equity holders ($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
|
|
|
|
|
|
|
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
value
|
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)
|
||||
|
|
|
¯¯¯¯
|
¯¯¯¯
|
||||
|
|
|
¯¯¯¯
|
¯¯¯¯
|
||||
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.
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
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
|
|
|
InterContinental Hotels Group PLC
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
By:
|
/s/ C. Bates
|
|
|
Name:
|
C.
BATES
|
|
|
Title:
|
SENIOR
ASSISTANT COMPANY SECRETARY
|
|
|
|
|
|
|
Date:
|
07
August 2025
|
|
|
|
|
InterContinental Hotels Group Plc