IHG Hotels & Resorts reported its half-year 2025 results.
Highlights include:
- Global RevPAR up 1.8 percent, and rooms revenue growth was positive across all stay occasions: leisure, business, and groups.
- Operating profit up 13 percent on an underlying basis and adjusted EPS up 19 percent.
- Net system growth 5.4 percent year-on-year with a record number of hotels opened in the half, and since then, surpassing 1 million rooms globally.
- The company signed over 320 hotels to its pipeline, up 15 percent on last year.
- Remains on track to meet full-year profit and earnings consensus and return over $1.1 billion to shareholders for 2025.
Elie Maalouf, chief executive officer of 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 percent.
“We opened a record number of rooms in the first 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 percent.
“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 capitalize on our scale, leading positions, and the attractive long-term demand drivers for our markets.”
Trading and Revenue
- H1 Global RevPAR: Up 1.8 percent, with Americas up 1.4 percent, EMEAA up 4.1 percent, and Greater China down 3.2 percent
- Average daily rate: Up 1.4 percent, occupancy up 0.3 percentage points
- Total gross revenue: $16.7 billion, up 4 percent
System Size and Pipeline
- Gross system growth: Up 7.7 percent year-over-year and net system growth of 5.4 percent year-over-year, adjusting for the impact of removing rooms previously affiliated with The Venetian Resort Las Vegas (net growth of up 4.6 percent year-over-year on a reported basis)
- Opened 31,400 rooms (207 hotels) in H1, a record level, and up 75 percent year-over-year
- Global estate of 999,000 rooms (6,760 hotels) as of 30 June; milestone of one million rooms reached since 30 June
- Signed 51,200 rooms (324 hotels) in H1, up 15 percent year-over-year, excluding Ruby acquisition in 2025 and NOVUM signings in 2024
- Global pipeline of 338,000 rooms (2,276 hotels) as of 30 June, up 4 percent YTD, and represents 34 percent of the current system size
Cash Flow and Net Debt
- Net cash from operating activities of $312 million (2024: $162 million) and adjusted free cash flow of $302 million (2024: $131 million), with the increase partly due to the prior year’s higher spend in the system fund
- Net debt increase of $579 million in H1, driven by $605 million of shareholder returns through dividend payments and share buybacks; $120 million acquisition spend; $96 million foreign exchange adverse impact on net debt
- Trailing 12-month adjusted EBITD of $1,259 million, up 10% year-over-year; net debt: adjusted EBITDA ratio of 2.67x
