IHG half year results for the 6 months to 30 June 2025

International

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

6 months ended 30 June	2025	2024	% change	Underlying1 % change
Results from reportable segments1:
Revenue1	$1,175m	$1,108m	6 %	5 %
Revenue from fee business1	$908m	$850m	7 %	6 %
Operating profit1	$604m	$535m	13 %	12 %
Fee margin1	64.7%	60.8%	+3.9%pts
Adjusted EPS1	242.5¢	203.9¢	19 %
IFRS results:
Total revenue	$2,519m	$2,322m	8 %
Operating profit	$623m	$525m	19 %
Basic EPS	300.1¢	212.5¢	41 %
Interim dividend per share	58.6¢	53.2¢	10 %
Net debt1	$3,361m	$2,782m	21 %

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

Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts, said:  “Our momentum continued in the first half of 2025, with further achievements in accelerating the growth of our brands, expanding in key geographies, strengthening hotel owner returns, driving ancillary fee streams, delivering cost efficiencies, and returning surplus capital to shareholders. With thanks to our teams around the world, we’re pleased to report that these achievements propelled our adjusted EPS growth to +19%.  We opened a record number of rooms in the half through the addition of 207 hotels, and signed another 324 properties into our pipeline as owner demand for our world class brands continues to increase. In recent weeks, we’re very proud to have exceeded the milestone of one million open rooms across our global portfolio of over 6,700 hotels. As we look to the future, our pipeline of more than 2,200 hotels is equivalent to further system size growth of +34%.  We remain on track to meet full year consensus profit and earnings expectations. While some shorter term macroeconomic 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.”