Intercontinental Hotels Group Plc · LSE:IHG
Intercontinental Hotels — Investor Presentation (June 2025)
132 slides from Intercontinental Hotels's investor presentation, June 2025
Slide 1: Investor Deck
IHG HOTELS & RESORTS Investor Deck June 2025
Slide 2: Contents
Contents Part A Pages 4-13 Intro to IHG for investors Part B Pages 14-15 Q1 2025 Trading Update (8 May 2025) Part B Pages 16-77 2024 Full Year Results (18 February 2025) Part C Pages 78-132 Extracts from Update on Strategic Priorities (20 February 2024) and 2024 Half Year Results (6 August 2024) 2
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Slide 4: Intro to IHG for Investors
IHG HOTELS & RESORTS Intro to IHG for Investors
Slide 5: IHG's strong business model: sustainable competitive advantage
Intro to IHG IHG’s strong business model: sustainable competitive advantage A leading global hospitality company with 6,600+ open hotels in more than 100 countries and a further 2,200+ in the pipeline representing +34% rooms growth Well-invested High-value geographic Asset-light, Robust pipeline por
Slide 6: Underpinned by clear purpose, ambition and strategic priorities
Intro to IHG Underpinned by clear purpose, ambition and strategic priorities OUR PURPOSE OUR AMBITION WHAT WE DO WHY WE DO IT Provide True To be the hotel company of choice Hospitality for Good for guests and owners OUR STRATEGIC PRIORITIES HOW WE MAKE IT HAPPEN RELENTLESS BRANDS LEADING CARE FOR FO
Slide 7: Asset light, mainly franchised, and geographically diverse
Intro to IHG Asset light, mainly franchised, and geographically diverse System size and pipeline Strong competitive position in an industry where System size (rooms): Luxury branded players are gaining 2% <1% 10% 196k 519k market share 27% 71% 20% 53% Upscale/ Upper Midscale/ With a larger share Ups
Slide 8: Our asset light business model
Intro to IHG Our asset light business model Franchised Managed Exclusive Partners Owned, Leased & Managed Lease 71% 27% 2% <1% Fee revenue: Fee revenue: Fee revenue: We record the entire revenue and profit of the hotel in our financial Royalty Fee: Base Management Fee: We receive marketing, statemen
Slide 9: Brand portfolio expansion since 2015
Intro to IHG Brand portfolio expansion since 2015 Ten brands added to our industry-leading portfolio through a combination of organic launches, acquisitions and commercial partnerships Legend New Brand LUXURY & LIFESTYLE PREMIUM ESSENTIALS SUITES EXCLUSIVE PARTNERS 9
Slide 10: Strong portfolio of 20 preferred brands across chain scales
Intro to IHG Strong portfolio of 20 preferred brands across chain scales Having added ten brands to our portfolio since 2015 LUXURY & PREMIUM ESSENTIALS SUITES EXCLUSIVE LIFESTYLE PARTNERS SYSTEM SYSTEM SYSTEM SYSTEM SYSTEM 13% 15% 61% 9% 2% PIPELINE PIPELINE PIPELINE PIPELINE PIPELINE 21% 22% 45% 1
Slide 11: Our growth algorithm
Intro to IHG Our growth algorithm Strong track record, recovery and potential for future growth compounding and sustainable shareholder value creation IHG's strong track IHG's strong IHG's strong IHG's strong record recovery performance potential through to 2019 2023 vs 2019 2024 vs 2023 looking ahe
Slide 12: Capital allocation approach to return surplus capital to shareholders
Intro to IHG Continuing our capital allocation approach to routinely return surplus capital to shareholders – further $900m buyback announced for 2025 #1: Invest in the business #2: Sustainably grow the #3: Return surplus funds to drive growth ordinary dividend to shareholders Objective of maintaini
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Slide 14: Q1 2025 Trading Update
Q1 2025 Trading Update 8 May 2025 14
Slide 15: Q1 2025 A strong start to the year
Q1 2025 A strong start to the year, on track to meet consensus profit expectations • Group RevPAR +3.3% YOY Trading • Regional RevPAR YOY: Americas +3.5%, EMEAA +5.0% and Greater China -3.5% performance • ADR +2.2% YOY; occupancy +0.6%pts YOY • Net system size growth +4.3% YOY; global system size of
Slide 16: 2024 Full Year Results
2024 Full Year Results 18 February 2025 16
Slide 17: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements This presentation may contain projections and forward looking-statements. The words “believe”, “expect”, “anticipate”, “intend” and “plan” and similar expressions identify forward-looking statements. All statements other than statements of histori
Slide 18: Speakers and agenda
Speakers and agenda Elie Maalouf Michael Glover Chief Executive Officer Chief Financial Officer Agenda FY 2024 Overview Financial Review Progress on Strategic Priorities Conclusions Live Q&A (at 9:30am London time) 18
Slide 19: Elie Maalouf
Elie Maalouf Chief Executive Officer 19
Slide 20: FY 2024 overview
FY 2024 overview FY 2024 Strong performance with operating profit from reportable segments1 +10% and Adjusted EPS1 +15%; signings +34%; over $1bn returned to shareholders RevPAR System Size Profit and Earnings Capital Returns +3.0% FY global RevPAR 987k rooms (6,629 hotels) 61.2% fee margin1,
Slide 21: FY 2024 Financial Review
FY 2024 Financial Review Michael Glover Chief Financial Officer 21
Slide 22: Financial performance overview
FY 2024 Financial Review Financial performance overview FY 2024 FY 2023 Reported Underlying % change % change Revenue from Reportable Segments 1 $2,312m $2,164m +7% +7% Operating profit from Reportable Segments1 (EBIT) $1,124m $1,019m +10% +12% Fee business revenue 1 $1,774m $1,672m +6% +7% Fee busi
Slide 23: RevPAR, occupancy and ADR performance
FY 2024 Financial Review RevPAR, occupancy and ADR performance IHG Global RevPAR, Occupancy and ADR (YOY) Americas RevPAR, Occupancy and ADR (YOY) +4.6% +4.6% +3.0% +2.5% +2.9% +2.5% +1.3%pts +2.1% +1.0%pts +2.0% +0.6%pts +0.3%pts Q4 FY Q4 FY EMEAA RevPAR, Occupancy and ADR (YOY) Greater China RevPA
Slide 24: Demand driver performance
FY 2024 Financial Review Demand driver performance IHG Global demand drivers (FY YOY) Americas demand drivers (FY YOY) +7% +6% +3% +2% +4% +4% +5% +3% +2% +2% +3% 0% +2% +2% +2% 0% (1)% Business Leisure Groups (1)% Business Leisure Groups EMEAA demand drivers (FY YOY) Greater China demand drivers (F
Slide 25: Net system size growth of +4.3% YOY
FY 2024 Financial Review Net system size growth of +4.3% YOY; strong acceleration of openings in Q4 FY24 Net System Size Growth +10.4% +9.6% Gross openings +7.8% +7.4% +6.2% +4.3% +3.2% Net system size growth +1.6% AMER EMEAA Greater China IHG -1.6% -1.8% -1.9% -3.0% Gross openings of 59.1k rooms (3
Slide 26: Excellent signings performance; up +34% YOY
FY 2024 Financial Review Excellent signings performance; up +34% YOY in total, supporting future system growth potential Pipeline at Q4 Signings FY Signings 31 December 2024 (rooms) (rooms) (rooms) Americas Americas 9.7k 26.6k 109.3k FY conversion signings up +88% YOY (+25% excluding NOVUM) 50.3k EM
Slide 27: Americas highlights
FY 2024 Financial Review Americas highlights Trading performance – FY RevPAR up +2.5%, with occupancy of 68.6% up +0.3%pt and rate +2.0% higher – Q4 RevPAR up +4.6%, with occupancy of 65.2% up +1.0%pt and rate +2.9% higher – Fee margin1 81.2% (82.2% FY23); $21m IMFs ($21m FY23) – Operating profit fr
Slide 28: EMEAA highlights
FY 2024 Financial Review EMEAA highlights Trading performance – FY RevPAR up +6.6%, with occupancy of 71.8% up +2.0%pts and rate +3.6% higher – Q4 RevPAR up +6.9%, with occupancy of 73.1% up +2.1%pts and rate +3.8% higher – Fee margin1 65.3% (60.5% FY23); $118m IMFs ($101m FY23) – Operating profit f
Slide 29: Greater China highlights
FY 2024 Financial Review Greater China highlights Trading performance – FY RevPAR down -4.8%, with occupancy of 60.4% down -0.4%pts and rate -4.2% lower – Q4 RevPAR down -2.8%, with occupancy of 60.6% up +1.1%pts and rate -4.6% lower – Fee margin1 60.9% (59.6% FY23); $39m IMFs ($46m FY23) – Operatin
Slide 30: Fee margin +190bps ahead YOY
FY 2024 Financial Review Fee margin +190bps ahead YOY, driven by EMEAA strong trading 1 performance, cost control and non-regional ancillary fees streams TOTAL IHG Americas FY 2024 61.2% FY 2024 81.2% FY 2023 59.3% FY 2023 82.2% FY 2022 55.9% FY 2022 84.3% FY 2021 49.5% FY 2021 82.2% FY 2020 34.1% (
Slide 31: Cash flow: lower FCF and conversion at 94%
FY 2024 Financial Review Cash flow: lower FCF and conversion at 94% due to planned higher 1 spend in the System Fund and increased key money +65 +194 (422) 1,189 Working 1,124 Depreciation capital and and Amortisation Interest and System (237) FY 2024 ($m) tax (69) Dividends Fund2 +8 (45) paid to Sh
Slide 32: Targeted capital expenditure to drive growth
FY 2024 Financial Review Targeted capital expenditure to drive growth $m FY 2024 FY 2023 Key money & maintenance capex Key money 1 (206) (101) – Key money: used to secure hotel signings Maintenance capex (31) (38) – Maintenance: relates to owned, leased and managed Total (237) (139) lease hotels and
Slide 33: Capital allocation approach to return surplus capital
FY 2024 Financial Review Continuing our capital allocation approach to routinely return surplus capital to shareholders – further $900m buyback announced for 2025 #1: Invest in the business #2: Sustainably grow the #3: Return surplus funds to drive growth ordinary dividend to shareholders Objective
Slide 34: Modelling considerations
FY 2024 Financial Review Modelling considerations FY25 and near-term: Interest expense Tax rate Capital expenditure Adjusted interest expense1 is expected to Effective adjusted tax rate1 is expected to Key money & maintenance capex expected to be increase in FY25 to $190m-$205m be ~27% in FY25 and f
Slide 35: Progress on Strategic Priorities
Progress on Strategic Priorities Elie Maalouf Chief Executive Officer 35
Slide 36: Our five areas of focus
Progress on strategic priorities: our five areas of focus Our five areas of focus We made great progress in 2024 against a clear strategy that is unlocking the full potential of our business for all stakeholders 01 02 03 04 05 Growing our Expanding in Enhancing Driving Delivering brands priority hot
Slide 37: Delivering on our growth algorithm
Progress on strategic priorities: our growth algorithm Delivering on our growth algorithm Progress against our five priorities in 2024 delivered adjusted EPS growth at the top-end of our medium- to long-term growth algorithm range RevPAR growth Fee revenue growth Fee margin expansion EBIT growth Cas
Slide 38: Growing our brands
Growing our brands 38
Slide 39: Luxury & Lifestyle
Progress on strategic priorities: growing our brands Luxury & Lifestyle Driving high-value growth through an industry-leading collection of six brands; 536 open properties in the system; pipeline of 374 more represents future rooms growth of ~52% Six Senses Regent InterContinental Open and pipeline
Slide 40: Luxury & Lifestyle
Progress on strategic priorities: growing our brands Luxury & Lifestyle This high fee-per-key brand segment now accounts for 14% of our system size and 21% of our pipeline Vignette Collection Kimpton Hotel Indigo 55 open and pipeline hotels just 3 Nearly 140 open and pipeline Nearly 300 open and pip
Slide 41: Premium
Progress on strategic priorities: growing our brands Premium Uniquely tailored to target upscale customer segments; 557 open properties in the system; pipeline of 286 more represents future rooms growth of ~43% voco HUALUXE Crowne Plaza EVEN Record signings in FY24; >100% growth embedded in 4 consec
Slide 42: Essentials
Progress on strategic priorities: growing our brands Essentials Updated F&B offerings enhance owner returns and guest satisfaction; 4.6k open properties in the system; pipeline of 1.1k more represents future rooms growth of ~26% Holiday Inn Express Holiday Inn Garner avid Optimized breakfast driving
Slide 43: Suites and Partnerships
Progress on strategic priorities: growing our brands Suites and Partnerships An expanding portfolio of extended stay properties across chain scales; 763 open properties in the system; pipeline of 394 more represents future rooms growth of ~45% Staybridge Suites Atwell Suites Candlewood Suites Newly
Slide 44: Suites and Partnerships
Progress on strategic priorities: growing our brands Suites and Partnerships Open and pipeline Iberostar hotels increased in FY24, with 55 properties now in the system and a pipeline of 7 more, representing future rooms growth of ~12% Holiday Inn Iberostar Club Vacations Internationalising our 6 new
Slide 45: Net System Size Growth
Progress on strategic priorities: growing our brands Net System Size Growth Openings are improving fuelled by the strength of IHG’s brand portfolio and overall enterprise platform Improvement in openings and removals... Future growth underpinned by a robust pipeline with more % of opening system siz
Slide 46: Large embedded annual fee revenue growth in our pipeline
Progress on strategic priorities: growing our brands Large embedded annual fee revenue growth in our pipeline today The 325k rooms (2,210 hotels) in the pipeline, if opened today, represent an estimated annual fee revenue of ~$0.5bn Pipeline by region Embedded Pipeline by brand segment (rooms) (room
Slide 47: Our newest brand: Ruby
Progress on strategic priorities: growing our brands Our newest brand: Ruby Enriching IHG’s brand portfolio with an exciting, distinct and high-quality offer for both guests and owners in popular city destinations Upscale urban lifestyle brand for modern travellers 20 hotels open (3.5k rooms) across
Slide 48: Our newest brand: Ruby
Progress on strategic priorities: growing our brands Our newest brand: Ruby Space-saving designs and a high degree of operational standardisation and automation drive efficiencies for owners Next chapter of growth underpinned by attractive owner economics: Franchise and conversion Cost efficient fri
Slide 49: Expanding in priority growth geographies
Expanding in priority growth geographies 49
Slide 50: United States
Progress on strategic priorities: expanding in priority growth geographies United States Development momentum building in our largest market as new, conversion-friendly brands scale up Strong Momentum Robust Pipeline Diversifying Mix Applications System Size System Size (open rooms) +9% open rooms (
Slide 51: Greater China
Progress on strategic priorities: expanding in priority growth geographies Greater China Record year of hotel development activity; FY25 milestones underscore the strength of our regional growth engine Strong FY24 Performance Long track record of compounding rooms growth Signings 50 years1 Vignette
Slide 52: Germany and Japan
Progress on strategic priorities: expanding in priority growth geographies Germany and Japan NOVUM Hospitality agreement rapidly scales our footprint in Germany; debut of three new brands widens our presence in Japan and accelerates conversion opportunities Germany Japan Doubling our footprint with
Slide 53: Saudi Arabia and India
Progress on strategic priorities: expanding in priority growth geographies Saudi Arabia and India Large pipelines in Saudi Arabia and India fuel future system size growth; government initiatives and favourable demographic trends create further tailwinds Saudi Arabia India Capturing high-value fee st
Slide 54: Enhancing hotel owner returns
Enhancing hotel owner returns 54
Slide 55: IHG's industry-leading connected technology ecosystem
Progress on strategic priorities: enhancing hotel owner returns IHG’s industry-leading connected technology ecosystem Driving value for owners through direct bookings, commercial performance optimisation, and guest experience solutions Leveraging IHG’s award- IHG’s tech cloud foundation enables hote
Slide 56: Innovating our hotel tech stack
Progress on strategic priorities: enhancing hotel owner returns Innovating our hotel tech stack Creating a superior value proposition for our owners through best-in-class technology platforms Guest Reservation Revenue Management Property Management System (GRS) System (RMS) System (PMS) Best-in-clas
Slide 57: Powerful loyalty programme driving greater enterprise contribution
Progress on strategic priorities: enhancing hotel owner returns Powerful loyalty programme is driving greater enterprise contribution IHG One Rewards has rapidly grown to >145m loyalty members that are ~10x more likely to book direct and spend ~20% more than non-members Loyalty highlights Enterprise
Slide 58: Driving ancillary fee streams
Driving ancillary fee streams 58
Slide 59: Co-brand credit cards
Progress on strategic priorities: driving ancillary fee streams Co-brand credit cards New agreements drive ancillary fee growth, margin expansion, membership and loyalty to IHG One Rewards, deepen guest relationships, and deliver more business to our hotels Co-brand credit card highlights Fee revenu
Slide 60: Other ancillary fee streams
Progress on strategic priorities: driving ancillary fee streams Other ancillary fee streams Enterprise platform strength driving further opportunities for high margin ancillary fee revenue growth through loyalty point sales and branded residential Sale of loyalty points to consumers Branded resident
Slide 61: Our purpose, ambition and strategic priorities
Our purpose, ambition and strategic priorities Our purpose, ambition and strategic priorities OUR PURPOSE OUR AMBITION WHAT WE DO WHY WE DO IT Provide True To be the hotel company of choice Hospitality for Good for guests and owners OUR STRATEGIC PRIORITIES HOW WE MAKE IT HAPPEN RELENTLESS BRANDS LE
Slide 62: Journey to Tomorrow
Progress on strategic priorities: care for our people, communities and planet Journey to Tomorrow Aligned to our purpose of True Hospitality for Good and building on years of important progress, Journey to Tomorrow puts IHG on a longer-term path to positive change for our people, communities and pla
Slide 63: Our growth algorithm
Progress on strategic priorities: our growth algorithm Our growth algorithm Strong track record, recovery and potential for future growth compounding and sustainable shareholder value creation IHG's strong track IHG's strong IHG's strong IHG's strong record recovery performance potential through to
Slide 64: Appendices: FY 2024 Financial Performance
Appendices FY 2024 Financial Performance 64
Slide 65: Revenue and operating profit breakdown
Appendices: FY 2024 Financial Performance Revenue and operating profit breakdown Results from reportable segments FY 2024 FY 2023 ‘24 vs ’23 ‘24 vs ‘23 $ change % change Franchise and base management fees $1,357m $1,304m $53m 4% Incentive management fees $178m $168m $10m 6% Central revenue $239m $20
Slide 66: Revenue growth rate analysis FY 2024 vs FY 2023
Appendices: FY 2024 Financial Performance Revenue growth rate analysis FY 2024 vs FY 2023 RevPAR growth % Net rooms growth % Underlying Fee Revenue1 Comparable Total YOY Available Growth % Comments Hotels that have All hotels that were Aggregate number traded in all months open in 2024 and of rooms
Slide 67: Revenue and operating profit 2021-2024 (post-IFRS 17)
Appendices: FY 2024 Financial Performance Revenue and operating profit 2021-2024 (post-IFRS 17) Total Revenue Total Operating Profit¹ Actual US$ FY 2024 FY 2023 FY 2022 FY 2024 FY 2023 FY 2022 Franchise and Base Management Fees 958 936 861 Incentive Management Fees 21 21 18 Fee Business 979 957 879
Slide 68: Revenue and operating profit 2019-2022 (pre-IFRS 17)
Appendices: FY 2024 Financial Performance Revenue and operating profit 2019-2022 (pre-IFRS 17) Total Revenue Total Operating Profit¹ Actual US$ FY 2022 FY 2021 FY 2020 FY 2019 FY 2022 FY 2021 FY 2020 FY 2019 Franchise and Base Management Fees 861 683 452 840 - - - - Incentive Management Fees 18 8 5
Slide 69: FY 2024 underlying fee business revenue and operating profit reconciliations
Appendices: FY 2024 Financial Performance FY 2024 underlying fee business revenue and operating profit non-GAAP reconciliations Americas EMEAA Greater China Central Total IHG Operating Operating Operating Operating Operating $m Revenue Profit Revenue Profit Revenue Profit Revenue Loss Revenue Profit
Slide 70: FY 2023 underlying fee business revenue and operating profit reconciliations
Appendices: FY 2024 Financial Performance FY 2023 underlying fee business revenue and operating profit non-GAAP reconciliations Americas EMEAA Greater China Central Total IHG Operating Operating Operating Operating Operating $m Revenue Profit Revenue Profit Revenue Profit Revenue Loss Revenue Profit
Slide 71: Demand drivers of rooms revenue performance
FY 2024 Financial Review Demand drivers of rooms revenue performance 1 IHG Global demand drivers (FY YOY) Americas demand drivers (FY YOY) +10% +8% +8% +7% +7% +7% +6% +6% +6% +5% +5% +4% +4% +4% +3% +3% +2% +2% +2% +2% +3% +3% +3% +3% 0% +2% +2% 0% 0% (2)% Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4
Slide 72: Net system size growth delivered through brands and platform
Appendices: FY 2024 Financial Performance Net system size growth delivered through strength of brands and enterprise platform FY Net System Size Growth (‘000s) TOTAL IHG Americas (18.2) (8.4) 59.1 987.1 16.8 528.0 946.2 519.6 FY 2023 Openings Exits FY 2024 FY 2023 Openings Exits FY 2024 Europe, Midd
Slide 73: Ordinary shares
Appendices: FY 2024 Financial Performance Ordinary shares Number of shares (m) FY 2024 FY 2023 Opening balance at 1 January 172.3 183.1 Closing balance at 31 December 164.7 172.3 Closing balance excluding treasury1, ESOT and forfeitable shares 157.4 164.5 Basic weighted average shares (excluding tre
Slide 74: Currency impacts
Appendices: FY 2024 Financial Performance Currency impacts ($m) Reported FY 2023 Reported FY 2024 Revenue1 FY 2023 at FY 2024 AER3 Var. FY 2024 at FY 2023 AER3 Var. Americas 1,105 1,102 (3) 1,141 1,148 (7) EMEAA 677 674 (3) 748 753 (5) Greater China 161 159 (2) 161 163 (2) Central Overheads3 221 222
Slide 75: IHG typically converts ~100% of earnings into free cash
Appendices: FY 2024 Financial Performance IHG typically converts ~100% of earnings into free cash 1,000 250% 800 200% 600 150% 400 100% 200 50% 0 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Adjusted Free Cash Flow Adjusted Earnings Conversion Rate (%) From 2015 to 2024 cumulatively, >100% o
Slide 76: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements This presentation may contain projections and forward looking-statements. The words “believe”, “expect”, “anticipate”, “intend” and “plan” and similar expressions identify forward-looking statements. All statements other than statements of histori
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Slide 78: Extracts from 2024 Update on Strategic Priorities and 2024 Half Year Results
Extracts from 2024 Update on Strategic Priorities and 2024 Half Year Results 78
Slide 79: Extracts from 2024 Update on Strategic Priorities
Extracts from 2024 Update on Strategic Priorities (with data updated as appropriate) 20 February 2024 79
Slide 80: Attractions of our industry
Our industry Attractions of our industry – The industry benefits from enduring structural growth drivers of Leading global hotel companies – Growing populations and rising middle classes continue their long-term trend of – Driving business and commerce taking market share – Inherent desire to travel
Slide 81: Industry growth forecasts
Our industry Industry growth forecasts Estimated growth in hotel room nights consumed (decade through to 2034) Global US China RoW +3.6% +2.5% +4.0% +3.9% CAGR CAGR CAGR CAGR Estimated growth in Travel & Tourism spending1 (decade through to 2034) Global US China RoW +6.5% +5.2% +9.4% +6.1% CAGR CAGR
Slide 82: Our strong track record
IHG’s track record Our strong track record Decade through to 2019 RevPAR Net unit growth Fee margin expansion Adjusted EPS +3.9% p.a. +3.2% p.a. +130bps p.a. +11.4% CAGR Total capital returned Cash conversion1 Ordinary dividends2 Recent share buybacks to shareholders3 5-6% of shares bought >100% +11
Slide 83: Our outlook: compounding growth and sustainable shareholder value creation
IHG’s growth algorithm Our outlook: compounding growth and sustainable shareholder value creation Growth algorithm fundamentals RevPAR growth HSD % CAGR +100-150bps p.a. ~10% CAGR ~100% +12-15% CAGR + Fee revenue Fee margin EBIT Strong cash Adjusted EPS Net system size growth expansion growth conver
Slide 84: Three regions of scale with notable growth potential
Strategic priorities: relentless focus on growth Three regions of scale with notable growth potential Our largest, the Americas, has a further +21% growth secured in its pipeline; EMEAA +39%, Greater China +58% Americas Europe, Middle East, Greater China Asia and Africa SYSTEM + PIPELINE FY24 OPENIN
Slide 85: Each of our brand categories is demonstrating robust growth
Strategic priorities: relentless focus on growth Each of our brand categories is demonstrating robust growth From Essentials with +26% growth in the pipeline to Luxury & Lifestyle with +52% growth LUXURY & PREMIUM ESSENTIALS SUITES EXCLUSIVE LIFESTYLE PARTNERS SYSTEM + PIPELINE SYSTEM + PIPELINE SYS
Slide 86: Healthy pipelines across each of our brands
Strategic priorities: relentless focus on growth Healthy pipelines across each of our brands Every brand has >20% growth already in the pipeline SYSTEM + PIPELINE SYSTEM + PIPELINE SYSTEM + PIPELINE SYSTEM + PIPELINE 4.8k rooms 36.0k rooms 423.2k rooms 6.0k rooms +148% growth +77% growth +23% growth
Slide 87: Established and new brands have significant growth potential
Strategic priorities: relentless focus on growth Both our established and new brands have significant growth potential Signed 71k rooms (464 hotels) across our established brands and a further 34k more rooms (249 hotels) across our new brands Established brands New brands* SYSTEM + PIPELINE FY24 OPE
Slide 88: Investment in Luxury & Lifestyle brands and capabilities
Strategic priorities: relentless focus on growth Investment in Luxury & Lifestyle brands and capabilities Top 2 largest Luxury & Lifestyle portfolio by number of rooms and hotels; dedicated teams powering the L&L guest acquisition and return Luxury & Lifestyle portfolio growth L&L portfolio in 2014
Slide 89: An update on our newest brands: Iberostar Beachfront Resorts
Strategic priorities: relentless focus on growth An update on our newest brands: Iberostar Beachfront Resorts Now live across all IHG channels including web and mobile app; IHG One Rewards members can now enjoy full member benefits and earn and redeem points Iberostar Beachfront Resorts – Added Excl
Slide 90: An update on our newest brands: voco and Vignette Collection
Strategic priorities: relentless focus on growth An update on our newest brands: voco and Vignette Collection Attracting world-class conversion hotels to our leading brand portfolio, powerful enterprise platform and strong loyalty programme voco Vignette Collection – Upscale conversion brand launche
Slide 91: Lowering costs and driving efficiencies for our owners
Strategic priorities: brands guests and owners love Lowering costs and driving efficiencies for our owners Supporting superior performance and returns Cost to build & renovate Cost to open Cost to operate Evolved dual branded Built Garner supply chain in less Implemented hotel procure-to-pay avid/Ca
Slide 92: Journey to Tomorrow
Strategic priorities: care for our people, communities and planet Journey to Tomorrow Aligned to our purpose of True Hospitality for Good and building on years of important progress, Journey to Tomorrow puts IHG on a longer-term path to positive change for our people, communities and planet Our peop
Slide 93: Our people
Strategic priorities: care for our people, communities and planet Our people Championing a diverse culture where everyone can thrive Gender balance Diversity Culture of inclusion *** Note: Data as at 31 December 2023 *Leaders are defined as colleagues working at VP level and above. **This population
Slide 94: Communities
Strategic priorities: care for our people, communities and planet Communities Improving the lives of 30 million people by 2030 in our communities around the world Skills training Disaster response Food security 30k - Responded to 15 relief efforts globally - Supported The Global FoodBanking > Networ
Slide 95: Carbon & energy
Strategic priorities: care for our people, communities and planet Carbon & energy Targeting reductions in energy use and carbon emissions in line with climate science Decarbonising our Developing new-build hotels that Sourcing existing hotels operate at very low or zero carbon renewable energy - Pro
Slide 96: Responsible procurement
Strategic priorities: care for our people, communities and planet Responsible procurement Working with suppliers who share our commitment to operating responsibly and adopt ethical work practices Sourcing Global Embedding best practice responsibly supplier diversity across the business 110m - Sustai
Slide 97: Americas: overview
Regional update: Americas Americas: overview +21% growth secured in the pipeline, further adding to our scale advantage and leading positions in the region Scale Largest markets Franchised vs Countries and 1. United States System Pipeline Managed1 territories SYSTEM + PIPELINE FY24 OPENINGS 14.0k ro
Slide 98: Americas: brand portfolio mix
Regional update: Americas Americas: brand portfolio mix Adding more balance to the mix and developing in large and high growth segments LUXURY & PREMIUM ESSENTIALS SUITES EXCLUSIVE LIFESTYLE PARTNERS AMERICAS SYSTEM AMERICAS SYSTEM AMERICAS SYSTEM AMERICAS SYSTEM AMERICAS SYSTEM 9% 6% 68% 15% 2% AME
Slide 99: Americas: continued growth potential in Essentials and Suites
Regional update: Americas Americas: continued growth potential in Essentials and Suites Driving volume growth; ~16% future system growth in Essentials and ~43% in Suites Americas: Essentials portfolio growth Americas: Suites portfolio growth open rooms (last bar showing open + pipeline) open rooms (
Slide 100: Americas: investing in Luxury & Lifestyle
Regional update: Americas Americas: investing in Luxury & Lifestyle Large high-value opportunity in the region, bringing across the groups wider skills and relationships, and adding to Americas existing scale across three established brands Americas: Luxury & Lifestyle portfolio growth Americas RevP
Slide 101: Americas: demand tailwinds continue
Regional update: Americas Americas: demand tailwinds continue The continued return of business and groups; a full recovery for all stay occasions, with Groups turning to positive in 2024 Leisure Business Groups revenue revenue revenue +4% +22% +3% +1% +8% -8% 2024 2023 2024 2023 2024 2023 vs 2023 vs
Slide 102: EMEAA: overview
Regional update: EMEAA EMEAA: overview +39% growth secured in the pipeline, with excellent opportunities across high-value and high growth markets, and building scale advantage Scale Largest markets Franchised vs Countries and 1. United Kingdom System Pipeline Managed1 territories SYSTEM + PIPELINE
Slide 103: EMEAA: brand portfolio mix
Regional update: EMEAA EMEAA: brand portfolio mix Strongly balanced and with opportunities across all brands and segments LUXURY & PREMIUM ESSENTIALS SUITES EXCLUSIVE LIFESTYLE PARTNERS EMEAA SYSTEM EMEAA SYSTEM EMEAA SYSTEM EMEAA SYSTEM EMEAA SYSTEM 20% 23% 52% 1% 4% EMEAA PIPELINE EMEAA PIPELINE E
Slide 104: EMEAA: our brand portfolio today and growth opportunities
Regional update: EMEAA EMEAA: our brand portfolio today and growth opportunities Three of the group’s existing brands still to be developed in EMEAA; already shown how successful this can be with Kimpton and taking other brands global Present in EMEAA today Potential for future introduction LUXURY &
Slide 105: EMEAA: investing in Luxury & Lifestyle
Regional update: EMEAA EMEAA: investing in Luxury & Lifestyle A leading position, with incredible further potential across the region EMEAA: Luxury & Lifestyle portfolio growth Open rooms (last bar showing open + pipeline) 81k (425 hotels) Further 65% growth in the pipeline 49k (241 hotels) Just get
Slide 106: EMEAA: signings and openings
Regional update: EMEAA EMEAA: signings and openings Rebound in signings feeding through to openings Growing strength in signings… . . . resulting in stronger openings 50.3k4 (271 hotels) 23.6k8 21.2k7 (87 hotels) (87 hotels) 24.8k3 29.1k1 (151 hotels) 15.3k5 16.2k6 (160 hotels) 25.8k2 (79 hotels) (1
Slide 107: EMEAA: market prioritisation to achieve growth ambitions
Regional update: EMEAA EMEAA: market prioritisation to achieve growth ambitions Clear market-by-market strategy to optimise potential Market categorisation Deep penetration, full localisation, further high-value growth Category 1: large and well-established markets opportunity leveraging full brand
Slide 108: EMEAA: growth acceleration opportunities
Regional update: EMEAA EMEAA: growth acceleration opportunities Across both established and high growth markets GERMANY JAPAN KSA INDIA THAILAND SYSTEM + PIPELINE SYSTEM + PIPELINE SYSTEM + PIPELINE SYSTEM + PIPELINE SYSTEM + PIPELINE 37.2k rooms 17.0k rooms 39.0k rooms 16,897k rooms 17.9k rooms +35
Slide 109: Agreement with NOVUM Hospitality
Regional update: EMEAA Agreement with NOVUM Hospitality Doubles IHG’s hotel presence in Germany; launches Holiday Inn – the niu collaboration, and debuts Garner and Candlewood Suites brands – Agreement signed in April 2024 – 108 open hotels (15.3k rooms) and 11 hotels under development (2.4k rooms)
Slide 110: Greater China: overview
Regional update: Greater China Greater China: overview +58% growth secured in the pipeline, with excellent opportunities in a high growth market that will also bring maturity benefits and further scale advantage as it develops Scale Our market Franchised vs Leadership Greater China System Pipeline M
Slide 111: Greater China: robust growth across key industry drivers
Regional update: Greater China Greater China: robust growth across key industry drivers Travel & tourism spending is forecast to exceed growth in middle income households and GDP over the next decade; huge opportunity for hotel rooms penetration GDP Middle income Travel & tourism Hotel rooms (real;
Slide 112: Greater China: brand portfolio mix
Regional update: Greater China Greater China: brand portfolio mix Leading brand positions established in each of the Luxury & Lifestyle, Premium and Essentials categories, with more opportunity to come LUXURY & PREMIUM ESSENTIALS SUITES EXCLUSIVE LIFESTYLE PARTNERS GREATER CHINA SYSTEM GREATER CHINA
Slide 113: Greater China: our brand portfolio today and growth opportunities
Regional update: Greater China Greater China: our brand portfolio today and growth opportunities Four of the group’s existing brands still to be developed in the region; already shown how successful this can be with bringing across the Group’s other brands Present in Greater China Potential for futu
Slide 114: Greater China: franchising growth
Regional update: Greater China Greater China: franchising growth Benefit of continued gradual shift to scale-advantaged franchise model, whilst still capturing rapid growth opportunities in a huge developing economy First IHG hotel ‘Franchise Plus’ in Mainland China 100 IHG hotels model launched 400
Slide 115: Greater China: signings and openings
Regional update: Greater China Greater China: signings and openings Resilience and recovery in signings reflects strength of brands and IHG’s enterprise platform; further recovery in openings now to increasingly feed through Signings Openings 35.7k1 (158 hotels) 30.8k 29.4k 28.2k (153 hotels) (141 h
Slide 116: Extracts from 2024 Half Year Results
Extracts from 2024 Half Year Results 6 August 2024 116
Slide 117: Commercial & Marketing
Commercial & Marketing Heather Balsley Chief Commercial & Marketing Officer 117
Slide 118: Our Commercial & Marketing organisation
Commercial & Marketing: overview Our Commercial & Marketing organisation Maximising revenue delivery and returns for hotels to unlock system growth Develops IHG Hotels & Resorts Leads IHG One Rewards Orchestrates IHG’s masterbrand and 19 hotel brands loyalty programme to motivate commercial engine t
Slide 119: A leading commercial engine powered by our brands
Commercial & Marketing: overview Our approach: a leading commercial engine powered by our brands Interdependent elements of our strategy work together to drive revenue at lowest possible cost to hotels IHG Hotels & Resorts masterbrand Enterprise contribution Brand portfolio Ancillary revenue IHG One
Slide 120: Masterbrand: building the brand of IHG Hotels & Resorts
Commercial & Marketing: IHG Hotels & Resorts masterbrand Masterbrand: building the ‘brand’ of IHG Hotels & Resorts Strengthening awareness and reputation to drive revenue, inspire owner interest and talent acquisition OUR AMBITION: Positively influences MAKE commercial delivery Inspires owner intere
Slide 121: Masterbrand: 'masterbrand everywhere' strategy
Commercial & Marketing: IHG Hotels & Resorts masterbrand Masterbrand: ‘masterbrand everywhere’ strategy Global and targeted marketing across all guest touchpoints 1 2 3 Focus and broaden Span key customer Leverage the “billboard marketing journey moments effect” of 6k+ hotels One campaign for all Dr
Slide 122: Masterbrand: our investment is having an impact
Commercial & Marketing: IHG Hotels & Resorts masterbrand Masterbrand: our investment is having an impact A strong improvements in brand power, engagement and reputation Leading in Growing Leading in share of voice social engagement social reputation #1 +65% 4.37 Global share of voice Social engageme
Slide 123: IHG One Rewards
Commercial & Marketing: IHG One Rewards loyalty programme IHG One Rewards Members are our most profitable guests Highest value Highest ROI Ancillary customers marketing revenue Spend 20% more per stay Data-driven and Points purchase + co-brand and return more often book direct 10x more often credit
Slide 124: IHG One Rewards
Commercial & Marketing: IHG One Rewards loyalty programme IHG One Rewards Loyalty members drive more profit per stay versus OTA + = Spend Cost Drive more MORE LESS HOTEL PROFIT ~ +10% ~ +20% ~ -50% OTA ADR Loyalty ADR OTA fees Book direct fees OTA net revenue Loyalty net revenue Note: book direct fe
Slide 125: IHG One Rewards
Commercial & Marketing: IHG One Rewards loyalty programme IHG One Rewards Our reimagined programme, launched in 2022, has significantly transformed the member and owner proposition New programme New IHG One Global awareness New US tiers & benefits Rewards app campaign co-brand products Members: - Of
Slide 126: IHG One Rewards: leading indicators of growing member stickiness
Commercial & Marketing: IHG One Rewards loyalty programme IHG One Rewards: leading indicators of growing member stickiness Members are happier, more engaged, and returning more frequently Happier members Higher engagement More frequent returns − Improved Elite member satisfaction − Milestone Rewards
Slide 127: IHG One Rewards: our investment is paying off
Commercial & Marketing: IHG One Rewards loyalty programme IHG One Rewards: our investment is paying off Member base growth with increased spend and return rates driving +10%pts in member penetration Size of member base Member penetration (total number of members) (room nights booked by members) 130m
Slide 128: IHG One Rewards: member scale is a critical enabler
Commercial & Marketing: IHG One Rewards loyalty programme IHG One Rewards: member scale is a critical enabler of our success Powerful member base unlocks growth, new partners, and drives IHG margin and System Fund capacity 1 2 3 Powers growth Attracts partners Drives ancillary fees via owner percept
Slide 129: US co-brand credit cards: a powerful growth business
Commercial & Marketing: ancillary revenue (co-brand credit cards + point sales) US co-brand credit cards: a powerful growth business High value members powering material financial returns for IHG Cardholders are amongst the most valuable and engaged of all IHG One Rewards members Cardholders stay Ca
Slide 130: US co-brand credit cards: material momentum and further upside
Commercial & Marketing: ancillary revenue (co-brand credit cards + point sales) US co-brand credit cards: material momentum and further upside Optimised and relaunched our US co-brand credit card products, elevating performance across metrics Recent history H1 2024 US co-brand credit card highlights
Slide 131: Enterprise contribution: drives hotel profitability
Commercial & Marketing: enterprise contribution Enterprise contribution: drives hotel profitability Maximises revenue, minimises customer acquisition cost and drives pace of hotel ‘ramp-up’ to steady state performance Total enterprise contribution +3pts 80% − Digital contribution growth driven by st
Slide 132: Wrap up
Commercial & Marketing: wrap up Wrap up Continued momentum and ongoing investment to drive low-cost revenue and enable system size growth − IHG’s commercial engine drives high value, low cost of acquisition revenue for hotels, that complement our brand formats to optimise cost to build and operate t
InterContinental Hotels Group — Investor Presentation (June 2025) on 6ix