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IHG: HALF YEAR RESULTS FOR THE 6 MONTHS TO 30 JUNE 2025 (United Kingdom)
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. |
Category: Europe - United Kingdom - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on Thursday 07 August 2025
| 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% | |
1Definitions 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.”About IHGIHG Hotels & Resorts (tickers: LON:IHG for Ordinary Shares; NYSE:IHG for ADRs) 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 one million rooms and 6,700 open hotels in over 100 countries, and a development pipeline of over 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.
 Photo credit © InterContinental Hotels Group
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