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Full Year Results for the year to 31 December 2023 on 20 February 2024.


Full Year Results for the year to 31 December 2023 on 20 February 2024.

Category: Europe - United Kingdom - Industry economy - Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2024-02-21

2023 20221 % change Underlying2
% change
Revenue2 $2,164m $1,843m +17% +19%
Revenue from fee business2 $1,672m $1,434m +17% +17%
Operating profit2 $1,019m $828m +23% +25%
Fee margin2 59.3% 55.9% +3.4%pts
Adjusted EPS2 375.7¢ 282.3¢ +33%
Total revenue $4,624m $3,892m +19%
Operating profit $1,066m $628m +70%
Basic EPS 443.8¢ 207.2¢ +114%
Total dividend per share 152.3¢ 138.4¢ +10%
Net debt2 $2,272m $1,851m +23%

1. Re-presented for the adoption of IFRS 17 ‘Insurance Contracts’ (see note 1 to the Financial Statements).
2. Definitions for non-GAAP measures can be found in the ‘Use of key performance measures and non-GAAP measures’ section, along with reconciliations of these measures to the most directly comparable line items within the Financial Statements.

Trading and revenue

  • Strong trading: global RevPAR2 up +16.1% YoY (Q4 +7.6%); global RevPAR up +10.9% vs 2019 (Q4 +12.7%)
  • Americas FY RevPAR up +7.0% YoY (Q4 +1.5%), EMEAA +23.7% (Q4 +7.0%) and Greater China +71.7% (Q4 +72.0%), reflecting the differing levels of travel restrictions that were still in place in 2022
  • Average daily rate up +5% vs 2022, +13% vs 2019; occupancy up +6%pts vs 2022, just (1)%pt lower vs 2019
  • Total gross revenue2 of $31.6bn, +23% vs 2022, +13% vs 2019

System size and pipeline

  • Gross system growth +5.3%; net system size growth of +3.8%
  • Opened 47.9k rooms (275 hotels), +16% YoY (ex. Iberostar); global estate 946k rooms (6,363 hotels)
  • Signed 79.2k rooms (556 hotels), +26% YoY (ex. Iberostar); global pipeline 297k rooms (2,016 hotels), +5.5% YoY
  • Q4 opened 19.2k rooms (117 hotels) and signed 28.3k rooms (194 hotels), one of the highest quarters on record

Margin and profit

  • Fee margin2 of 59.3%, up +3.4%pts driven by trading recovery in EMEAA and Greater China
  • Operating profit from reportable segments2 of $1,019m, up +23%; this included $13m adverse currency impact
  • Reported operating profit of $1,066m, including a profit of $19m from System Fund and reimbursables (2022: loss of $105m) and a $28m exceptional profit (2022: $95m net exceptional charges)

Cash flow and net debt

  • Net cash from operating activities of $893m (2022: $646m), with adjusted free cash flow2 of $819m (2022: $565m), the latter representing 129% conversion of adjusted earnings2 (2022: 111%)
  • Net debt increase of $421m reflects the strong adjusted free cash flow, $1.0bn of shareholder returns and a $105m net foreign exchange adverse impact
  • Adjusted EBITDA2 of $1,086m, +21% vs 2022; net debt:adjusted EBITDA ratio of 2.1x

Shareholder returns

  • Completion of 2023’s $750m share buyback programme, and payment of $245m in ordinary dividends
  • Final dividend of 104.0¢ proposed, +10% vs 2022, resulting in a total dividend for the year of 152.3¢
  • New $800m buyback programme launched, which together with ordinary dividends is expected to return over $1bn to shareholders in 2024

Clear framework to drive future value creation over the medium to long term

  • High single digit percentage growth in fee revenue, though combination of RevPAR and system size growth, together with 100-150bps fee margin expansion, annually on average over the medium to long term
  • 100% conversion of adjusted earnings into adjusted free cash flow, supporting investment in the business to optimise growth, sustainably growing the ordinary dividend and returning surplus capital
  • 12-15% adjusted EPS compound annual growth rate, including the assumption of ongoing share buybacks
Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts, said:
I was honoured to take over as IHG’s group CEO in July and would like to thank our teams for delivering an excellent set of results. Travel demand was strong across all markets, with RevPAR up 16% on last year and 11% ahead of the 2019 pre-pandemic peak. Combined with the power of our enterprise and efficient operating model, profit from reportable segments grew 23% and exceeded one billion dollars for the first time, and adjusted EPS grew 33%. Today we are announcing a further $800m share buyback programme, which together with ordinary dividends is expected to return over $1bn to shareholders in 2024.

Alongside strong trading and financial performances, we continued to grow our portfolio and the global footprint of our brands. We opened 275 hotels in 2023 and signed more than double that amount – 556 hotels – into our pipeline. Adjusting for the effect of the Iberostar hotels joining IHG’s system, openings for the fourth quarter grew by 27% year-on-year and signings were up by 50%, representing one of our biggest ever quarters for development activity.

As we look ahead, our evolved strategic priorities and clear plans will further reinforce IHG Hotels & Resorts as the hotel company of choice for guests and owners. The travel industry has attractive, long-term drivers of demand, and the strength of our brand portfolio and enterprise platform will continue to boost our RevPAR and system size growth. Combined with our scale and cost base efficiencies, this will further expand fee margin. IHG’s strong cash generation supports investment in growth initiatives, sustainably increasing our ordinary dividend and the regular return of surplus capital such as through buybacks. We look forward to an important next chapter of growth for IHG that creates long- term sustainable value for our shareholders and benefits our employees, hotel owners and communities

Presentations for analysts and institutional shareholders:

Covering IHG’s 2023 results, a pre-recorded webcast presented by Elie Maalouf, Chief Executive Officer, and Michael Glover, Chief Financial Officer, will be available from 7:00am (London time) today, 20 February 2024, and can be accessed at

Covering IHG’s update on strategic priorities, a live webcast, together with a Q&A session, will be hosted later today at 1:30pm (London time). Elie Maalouf and Michael Glover will present along with other senior management colleagues, and the event can be accessed directly on or via The content of this full year results announcement contains all material background information to IHG’s update on strategic priorities, with no further announcement to be released.

Analysts and institutional investors wishing to ask questions should use the following dial-in details for a Q&A facility:
UK toll-free: 0800 048 7798. US toll-free: 800 579 2543. Other international: (+1) 785 424 1789. Conference ID: IHG.

An archived replay of the update on strategic priorities is expected to be available within 24 hours and will remain available, accessed at

The full release and supplementary data will be available on our website from 7:00am (London time) on 20 February 2024. The web address is

About IHG Hotels & Resorts

IHG Hotels & Resorts [LON:IHG, NYSE:IHG (ADRs)] is a global hospitality company, with a purpose to provide True Hospitality for Good

With a family of 19 hotel brands and IHG One Rewards, one of the world’s largest hotel loyalty programmes, IHG has over 6,300 open hotels in more than 100 countries, and a development pipeline of over 2,000 properties.

- Luxury & Lifestyle: Six Senses Hotels Resorts Spas, Regent Hotels & Resorts, InterContinental Hotels & Resorts, Vignette Collection, Kimpton Hotels & Restaurants, Hotel Indigo
- Premium: voco hotels, 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 345,000 people work across IHG’s hotels and corporate offices globally.

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