IHG Hotels & Resorts reported its full-year 2025 results. Highlights include:
Trading and Revenue
- Global RevPAR up 1.5 percent, with Americas up 0.3 percent, EMEAA up 4.6 percent, and Greater China down 1.6 percent
- Average daily rate up 0.8 percent, occupancy up 0.5 percentage points
- Total gross revenue $35.2 billion, up 5 percent
System size and Pipeline
- Gross system growth up 6.6 percent and net system growth of up 4.7 percent, adjusting for the impact of removing rooms previously affiliated with The Venetian Resort Las Vegas (net growth of 4.0 percent on a reported basis)
- Opened 65,100 rooms, up 10 percent YOY, across a record 443 hotels
- Global estate of 1,026 rooms (6,963 hotels)
- Signed 102,100 rooms (694 hotels), up 9 percent YOY excluding Ruby acquisition in 2025 and NOVUM signings in 2024
- Global pipeline of 340,000 rooms (2,292 hotels), up 4 percent YOY, and represents 33 percent of the current system size
Margin and Profit
- Fee margin was 64.8 percent, up 3.6 percentage points, driven by positive operating leverage and step-ups in ancillary fee streams
- Operating profit from reportable segments of $1.26 million, up 13 percent, including a $1 million favorable currency benefit
- IFRS operating profit of $1.19 million includes System Fund and reimbursables $46 million loss (2024: $83 million loss) and $21 million exceptional costs (2024: $nil)
- Adjusted EPS of 501.3¢, up 16 percent, includes adjusted interest expense of $200 million (2024: $165 million), an adjusted tax rate of 27 percent (2024: 27 percent), and a 4.2 percent reduction in the basic weighted average number of ordinary shares
Cash Flow and Net Debt
- Net cash from operating activities of $898 million (2024: $724 million) and adjusted free cash flow of $893 million (2024: $655 million), driven by higher profit and lower outflows related to capital expenditure, tax, and the System Fund
- Net debt increase of $551 million, driven by $1.1 billion and of shareholder returns through dividend payments and share buybacks; $120 million acquisition spend, and $69 million foreign exchange adverse impact on net debt
- Adjusted EBITDA of $1,332 million, up 12 percent YOY; net debt: adjusted EBITDA ratio of 2.5x
Shareholder Returns
- $900 million share buyback and $270 million of ordinary dividends paid to shareholders in 2025
- Final dividend of 125.9¢ proposed, up 10 percent, resulting in a total dividend for the year of 184.5¢, up 10 percent
- New $950 million buyback program launched, which, together with ordinary dividend payment,s is expected to return $1.2+ billion to shareholders in 2026, resulting in cumulative returns of more than $5 billion over 5 years
Statement From Leadership
Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts, said, “Thanks to the hard work of our teams, we delivered excellent financial performance in 2025 and in the face of some turbulent trading conditions. There was also further progress on our clear strategy to unlock IHG’s full potential for all stakeholders. We accelerated the growth of our brands, expanded in key markets, strengthened hotel owner returns, drove ancillary fee streams, delivered cost efficiencies, and returned surplus capital to shareholders. Collectively, this powered adjusted EPS growth of 16 percent.
“We opened a record 443 hotels in the year and added another 694 into our pipeline, including the highest ever hotel openings and signings in Greater China, as owner demand for our brands continues to increase globally. With over 6,900 open hotels around the world, as we look to the future, our pipeline of a further 2,300 properties is equivalent to system growth of 33 percent.
“We are delighted to launch today our new brand—Noted Collection—in the large and fast-growing premium segment, which I am confident will build on the well-established successes already achieved with our other collection and conversion brands—Vignette, voco, and Garner. The launch of Noted Collection follows the acquisition in 2025 of the Ruby brand, which further enriches our Premium portfolio with an exciting, distinct, and high-quality offer for both guests and owners in popular city destinations. Ruby signings are growing, and this year we have already successfully taken the brand into the US market.
“We constantly invest in our powerful enterprise to make sure IHG delivers for guests and owners, including improving and growing our brands and overall portfolio, driving increased loyalty contribution, and rolling out leading technology. Our cash generation and strong balance sheet support our investments to drive growth, and we continue to sustainably increase our ordinary dividend as well as regularly return surplus capital through share buybacks. The Board is pleased to propose a fourth consecutive year of increasing the dividend by 10 percent and the launch of a new $950 million share buyback program. Cumulatively over five years, this will mean IHG has returned more than $5 billion to our shareholders. Supported by attractive long-term industry demand drivers and our proven ability to capitalise on our scale and diverse fee streams across segments and geographies, we enter 2026 with confidence.”
