Intercontinental Hotels Group Plc · LSE:IHG
Intercontinental Hotels — H1 2025 Earnings Presentation
75 slides from Intercontinental Hotels's earnings presentation, Aug 7, 2025
Slide 1: 2025 Half Year Results
2025 Half Year Results 7 August 2025
Slide 2: 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 3: H1 2025: highlights reel
H1 2025: highlights reel True Hosp lal Year Resuts @IHG IHG pescers
Slide 4: Elie Maalouf
Elie Maalouf Chief Executive Officer 4
Slide 5: Agenda and speakers
Agenda and speakers Speakers Elie Maalouf Michael Glover Jolie Fleming Chief Executive Officer Chief Financial Officer Chief Product & Technology Officer Agenda H1 2025 Overview H1 2025 Financial Review Progress on Strategic Priorities Product & Technology Conclusions Live Q&A (at 9:30am London time
Slide 6: H1 2025: Overview
H1 2025: Overview H1 2025 Strong financial performance and development activity; record openings demonstrate enduring attraction of our brands and business model RevPAR System Size Profit and Earnings Capital Returns +1.8% H1 global RevPAR 999k rooms (6,760 hotels) 64.7% fee margin1, +3.9%pts
Slide 7: Delivering on our growth algorithm
Progress on strategic priorities: our growth algorithm Delivering on our growth algorithm Adjusted EPS growth in H1 2025 above the top-end of our medium to long-term growth algorithm range, showcasing strength and resiliency of our business model RevPAR growth Fee revenue growth Fee margin expansion
Slide 8: H1 2025 Financial Review
H1 2025 Financial Review Michael Glover Chief Financial Officer 8
Slide 9: Financial performance overview
HY 2025 Financial Review Financial performance overview HY 2025 HY 2024 Reported Underlying % change % change Revenue from Reportable Segments 1 $1,175m $1,108m +6% +5% Operating profit from Reportable Segments1 (EBIT) $604m $535m +13% +12% Fee business revenue 1 $908m $850m +7% +6% Fee business ope
Slide 10: RevPAR, occupancy and ADR performance
HY 2025 Financial Review RevPAR, occupancy and ADR performance IHG Global RevPAR, Occupancy and ADR (YOY) Americas RevPAR, Occupancy and ADR (YOY) +3.3% +3.5% +1.8% +2.4% +1.4% +2.2% +0.7%pts +1.4% +1.3% +0.6%pts +0.1%pts +0.3% +0.3%pts +0.5% +0.7% (0.2)%pts (0.7)%pts (0.5)% Q1 Q2 HY Q1 Q2 HY EMEAA
Slide 11: Demand driver performance
HY 2025 Financial Review Demand driver performance IHG Global demand drivers (HY YOY) Americas demand drivers (HY YOY) +3% +2% +2% +3% +2% +2% +1% +1% +1% 0% 0% +1% +1% +1% (1)% (1)% 0% 0% Business Leisure Groups Business Leisure Groups EMEAA demand drivers (HY YOY) Greater China demand drivers (HY
Slide 12: Net system size growth of +5.4% YOY; strong openings acceleration in Q2
HY 2025 Financial Review Net system size growth of +5.4% YOY ; 1 strong openings acceleration in Q2 HY25 YOY System Size Growth Gross openings of 31.4k rooms (207 hotels) Americas EMEAA Greater GROUP in H1 China +12.5% a record level +10.9% +12.0% up +75% YOY +8.6% +7.7%1 +5.4%1 Openings mix (rooms)
Slide 13: Strong signings performance, supporting future system growth
HY 2025 Financial Review Strong signings performance, supporting future system growth Pipeline at Q2 Signings HY Signings 30 June 2025 (rooms) (rooms) (rooms) HY conversion signings up +27% YOY¹ Americas Americas 5.0k 9.5k 105.8k HY new build signings up +9% YOY as developer confidence EMEAA improve
Slide 14: Long track record of revenue growth with efficient cost base
HY 2025 Financial Review IHG has a long track record of delivering revenue growth while maintaining a highly efficient and effective cost base ($m) Ensuring that our cost base runs 1,800 with maximum efficacy is a 1,600 continuous focus 1,400 $3m exceptional charge in HY25, 1,200 increasing to $
Slide 15: Fee margin up +390bps YOY
HY 2025 Financial Review Fee margin up +390bps YOY, driven by fee revenue growth, cost control 1 and non-regional ancillary fees streams (within Central) Total IHG Americas EMEAA Greater Central +200 bps +390 bps 81.9% 82.0% 82.7% China 65.0% 65.8% 64.7% 57.1% 58.1% 55.8% 57.9% 58.8% 60.8% 13.3% -33
Slide 16: Cash flow: H1 FCF conversion in-line with expectations
HY 2025 Financial Review Cash flow: H1 FCF conversion in-line with expectations and is >100% on a 1 trailing 12-month basis HY 2025 ($m) +33 (61) Depreciation 637 604 and Working Amortisation capital and (231) Other capex System +53 (4) (19) and Fund2 Interest and (96) investments4 Dividends tax Exc
Slide 17: Targeted capital expenditure to drive growth
HY 2025 Financial Review Targeted capital expenditure to drive growth $m HY 2025 HY 2024 Key money & maintenance capex Key money 1 (86) (86) – Key money: used to secure hotel signings Maintenance capex (10) (15) – Maintenance: relates to owned & leased hotels and Total (96) (101) corporate infrastru
Slide 18: Continuing our capital allocation approach
HY 2025 Financial Review Continuing our capital allocation approach to routinely return surplus capital to shareholders – on track to complete $900m buyback in 2025 #1: Invest in the business #2: Sustainably grow the #3: Return surplus funds to drive growth ordinary dividend to shareholders Objectiv
Slide 19: Modelling considerations
HY 2025 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 $195m-$205m be ~27% in FY25 and f
Slide 20: Progress on Strategic Priorities
Progress on Strategic Priorities Elie Maalouf Chief Executive Officer 20
Slide 21: Our five areas of focus
Progress on strategic priorities: our five areas of focus Our five areas of focus We are making great progress in 2025 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 Strengthening Driving Delivering brands pr
Slide 22: Growing our brands
Growing our brands 22
Slide 23: New brands add depth and breadth to our brand ladder
Progress on strategic priorities: growing our brands New brands add depth and breadth to our brand ladder We doubled our brand ladder over the past 10 years and are now capturing more guests and owners across more price points and property types Established New to IHG Hard brands Hard brands Convers
Slide 24: Robust development activity across established and newer brands
Progress on strategic priorities: growing our brands Robust development activity across established and newer brands Our established brands are driving openings and signings activity off a large base, while our newer brands continue to scale at pace Established brands Newer brands to IHG1 H1 Opening
Slide 25: 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 At the time of acquisition… Today… 20 hotels open (3.5k rooms) First 16 of 20 open hot
Slide 26: Luxury & Lifestyle and Premium
Progress on strategic priorities: growing our brands Luxury & Lifestyle and Premium Higher fee-per-key brands are accounting for a greater share of system size and openings relative to history System Size Strategic benefits (‘000 rooms, % of global system size) Luxury & Lifestyle Industry-leading Pr
Slide 27: Essentials and Suites
Progress on strategic priorities: growing our brands Essentials and Suites Our powerhouse portfolio of Essentials and Suites brands continues to grow as we invest in our established brands and scale our newer brands System Size Investing in our brands (‘000 rooms, % of global system size) Holiday In
Slide 28: Expanding in priority growth geographies
Expanding in priority growth geographies 28
Slide 29: Well diversified geographic footprint
Progress on strategic priorities: Expanding in priority growth geographies Well diversified geographic footprint With 6,700+ hotels in over 100 countries, we have a strong global footprint; our pipeline of 2,200+ hotels deepens our presence in existing markets and extends to new markets Europe Unite
Slide 30: United States and Greater China
Progress on strategic priorities: Expanding in priority growth geographies United States and Greater China Key development indicators higher YOY in the United States; On-track for another record year of hotel openings and signings in Greater China United States Greater China Further openings momentu
Slide 31: EMEAA priority growth geographies
Progress on strategic priorities: Expanding in priority growth geographies EMEAA priority growth geographies Gaining share in strategically important mature markets; rapidly expanding in high growth emerging markets Germany Saudia Arabia 171 open hotels; 65 pipeline hotels 45 open hotels, 58 pipelin
Slide 32: Enhancing hotel owner returns
Enhancing hotel owner returns 32
Slide 33: Powerful loyalty programme is 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 >145 million loyalty members that are ~10x more likely to book direct and spend ~20% more than non-members Loyalty highlights Ent
Slide 34: Deepening IHG's position as a beloved household name
Progress on strategic priorities: Enhancing hotel owner returns Deepening IHG’s position as a beloved household name Driving greater direct contribution by raising masterbrand awareness across all customer touchpoints Masterbrand marketing momentum Rolling out the ‘By IHG’ endorsement On-property an
Slide 35: Driving ancillary fee streams
Driving ancillary fee streams 35
Slide 36: 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, while further diversifying our revenue mix H1 Co-brand credit card highlights Co-brand fee revenue1 on track t
Slide 37: Other ancillary fee streams
Progress on strategic priorities: driving ancillary fee streams Other ancillary fee streams Enterprise strength drives further opportunities for high margin ancillary fee revenue growth through loyalty point sales and branded residential Branded residential an emerging Sale of loyalty points to cons
Slide 38: Product & Technology
Product & Technology Jolie Fleming Chief Product & Technology Officer 38
Slide 39: Three thematic areas underpin our Product & Technology strategy
Global Product & Technology Three thematic areas underpin our Product & Technology strategy Technology solutions that promote our hotels, optimize operations and drive memorable experiences for our guests Promote Optimize Engage hotels operations guests Solutions that make it easy Modern, above prop
Slide 40: IHG's industry-leading connected technology ecosystem
Global Product & Technology IHG’s industry-leading connected technology ecosystem Moving to an interconnected, cloud-based solution, which fundamentally transforms commercial and operational capabilities Engage Promote Optimize guests Engage hotels operations guests Award winning channels Modern, ab
Slide 41: New digital content platform
Global Product & Technology Promote New digital content platform AI Enhanced Showcasing the breadth and depth of properties in a modern way Easy inputs Videos, floorplans, VR & more Timeline Build and test new platform Roll out and continue to optimize 2025 2026+ 41
Slide 42: Industry-leading Guest Reservation System (GRS)
Global Product & Technology Optimize Industry-leading Guest Reservation System (GRS) Delivering high margin revenue to our owners and IHG through our cloud-based platform ROOM ATTRIBUTE UPSELL LIVE TODAY ‘Better View’, ‘Bigger Room’ and ‘Higher Floor’ available across our global estate Better View B
Slide 43: Best-in-class Revenue Management System (RMS)
Global Product & Technology Optimize Best-in-class Revenue Management System (RMS) AI Enhanced Driving commercial gains and operational efficiency for hotels across our system Leveraging AI machine learning for demand forecasting Driving revenue uplift and market share gains across the estate Luxury
Slide 44: New Property Management Systems (PMS) being rapidly deployed
Global Product & Technology Optimize New Property Management Systems (PMS) being rapidly deployed Moving to best-in-class, modern, cloud-based platforms that are efficient, intuitive and easy to use Cloud-based platform enables hotel management from anywhere Faster colleague onboarding and training
Slide 45: Building guest connection through a new CRM
Global Product & Technology Engage Building guest connection through a new CRM AI Enhanced Improving speed to market for loyalty benefits and unlocking more memorable experiences Elena Martinez PLATINUM ELITE Its Elena’s Birthday! Guest Satisfaction Score: 86 Predict & automate Birthday Reward Room
Slide 46: Driving performance, growth and competitive advantage
Global Product & Technology Driving performance, growth and competitive advantage Interconnected cloud-based solutions that enhance flexibility and strengthen our hotels Promote Optimize Engage hotels operations guests CLOUD-BASED AI-DRIVEN VALUE-FOCUSED PARTNERSHIPS Taking the burden Using the powe
Slide 47: Elie Maalouf
Elie Maalouf Chief Executive Officer 47
Slide 48: Our growth algorithm
Progress on strategic priorities: our growth algorithm Our growth algorithm Strong track record, recovery, performance and potential; driving compounding growth and sustainable shareholder value creation IHG's strong IHG's strong IHG's strong IHG's strong track record recovery performance potential
Slide 49: Please hold for the live Q&A
Please hold for the live Q&A which will commence at 9.30am UK time.
Slide 50: Q&A
Q&A Analysts and institutional investors wishing to ask questions should use the following dial-in details: UK: 020 3936 2999 France: 9 70 73 39 58 US: 646 233 4753 Passcode: 033819 To ask a question, press *1. To withdraw a question, press *2. For operator assistance, press *0.
Slide 51: Appendices
IHG HOTELS & RESORTS Appendices
Slide 52: Revenue growth rate analysis HY 2025 vs HY 2024
Appendices: revenue growth Revenue growth rate analysis HY 2025 vs HY 2024 RevPAR growth % Net rooms growth % Underlying fee revenue1 Comparable Total YOY Available growth % Comments All hotels that were open in either 2024 or 2025 (incl. new Hotels that have hotels that are Aggregate number traded
Slide 53: Revenue and operating profit breakdown
Appendices: revenue and operating profit Revenue and operating profit breakdown Results from reportable segments HY 2025 HY 2024 ‘25 vs ’24 ‘25 vs ‘24 $ change % change Franchise and base management fees $665m $657m $8m 1% Incentive management fees $85m $81m $4m 5% Central revenue $158m $112m $46m 4
Slide 54: Revenue and operating profit 2022-2025 (post-IFRS 17)
Appendices: revenue and operating profit Revenue and operating profit 2022-2025 (post-IFRS 17) Total Revenue Total Operating Profit¹ H1 FY H1 FY Actual US$ 2025 2024 2023 2024 2023 2022 2025 2024 2023 2024 2023 2022 Franchise and Base Management Fees 468 471 456 958 936 861 - - - - - - Incentive Man
Slide 55: Revenue and operating profit 2019-2022 (pre-IFRS 17)
Appendices: revenue and operating profit 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 1
Slide 56: H1 2025 underlying fee business revenue and operating profit reconciliations
Appendices: fee business revenue and operating profit H1 2025 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 Profit
Slide 57: H1 2024 underlying fee business revenue and operating profit reconciliations
Appendices: fee business revenue and operating profit H1 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 Re
Slide 58: Demand drivers of rooms revenue performance
Appendices: demand drivers Demand drivers of rooms revenue performance 1 IHG Global demand drivers (HY YOY) AMER demand drivers (HY YOY) +6% +6% +4% +3% +3% +3% +3% +2% +2% +2% +1% +1% +1% 0% 0% -2% (2)% (1)% Q1 Q2 HY Q1 Q2 HY Q1 Q2 HY Q1 Q2 HY Q1 Q2 HY Q1 Q2 HY Business Leisure Groups Business Leis
Slide 59: Americas highlights
Appendices: regional highlights Americas highlights Trading performance – HY RevPAR up +1.4%, with occupancy of 67.7% up +0.1%pt and rate +1.3% higher – Q2 RevPAR down (0.5)%, with occupancy of 71.7% down (0.7)%pts and rate +0.5% higher – Fee margin1 82.7% (82.0% HY24); $7m IMFs ($7m HY24) – Operati
Slide 60: EMEAA highlights
Appendices: regional highlights EMEAA highlights Trading performance – HY RevPAR up +4.1%, with occupancy of 69.8% up +0.8%pts and rate +2.9% higher – Q2 RevPAR up +3.0%, with occupancy of 72.5% up +0.7%pts and rate +2.0% higher – Fee margin1 65.8% (65.0% HY24); $62m IMFs ($55m HY24) – Operating pro
Slide 61: Greater China highlights
Appendices: regional highlights Greater China highlights Trading performance – HY RevPAR down -3.2%, with occupancy of 56.5% up +0.3%pts and rate (3.6)% lower – Q2 RevPAR down -3.0%, with occupancy of 60.0% down (0.1)%pts and rate (2.9)% lower – Fee margin1 57.9% (55.8% HY24); $16m IMFs ($19m HY24)
Slide 62: Net system size growth delivered through strength of brands and enterprise platform
Appendices: net system size growth Net system size growth delivered through strength of brands and enterprise platform HY YTD Reported Net System Size Growth (‘000s) TOTAL IHG AMER 9.4 (19.9) (15.1) 31.4 528.0 998.6 522.3 987.1 FY 2024 Openings Exits HY 2025 FY 2024 Openings Exits HY 2025 EMEAA Grea
Slide 63: Net system size growth delivered through strength of brands and enterprise platform
Appendices: net system size growth Net system size growth delivered through strength of brands and enterprise platform HY YOY Reported Net System Size Growth (‘000s) TOTAL IHG AMER (28.7) 72.5 (18.6) 998.6 19.4 954.8 521.5 522.3 HY 2024 Openings Exits HY 2025 HY 2024 Openings Exits HY 2025 EMEAA Gre
Slide 64: Net System Size Growth
Appendices: net system size growth Net System Size Growth Openings are improving, fuelled by the strength of IHG’s brand portfolio and overall enterprise platform Improvement in openings and removals... Future growth underpinned by a robust pipeline with more % of opening system size than 40% under
Slide 65: Ordinary shares
Appendices: ordinary shares Ordinary shares Number of shares (m) HY 2025 HY 2024 Opening balance at 1 January 164.7 172.3 Closing balance at 30 June 160.9 168.6 Closing balance excluding treasury1, ESOT and forfeitable shares 154.4 161.3 Basic weighted average shares (excluding treasury, ESOT and fo
Slide 66: Currency impacts
Appendices: currency impacts Currency impacts ($m) Reported HY 2024 Reported HY 2025 Revenue1 HY 2024 at HY 2025 AER3 Var. HY 2025 at HY 2024 AER3 Var. Americas 561 558 3 561 564 (3) EMEAA 347 354 (7) 368 361 7 Greater China 77 76 1 76 76 - Central3 123 123 - 170 170 - Total IHG 1,108 1,111 (3) 1,17
Slide 67: IHG typically converts ~100% of earnings into free cash
Appendices: cash conversion 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% of IHG’s adjust
Slide 68: Luxury & Lifestyle
Appendices: brand key stats Luxury & Lifestyle Driving high-value growth through an industry-leading collection of six brands; 553 open properties in the system; pipeline of 395 more represents future rooms growth of ~57% Six Senses Regent InterContinental Open and pipeline hotels Flagship hotels no
Slide 69: Luxury & Lifestyle
Appendices: brand key stats Luxury & Lifestyle This high fee-per-key brand segment now accounts for 13% of our system size and 22% of our pipeline Vignette Collection Kimpton Hotel Indigo Ahead of target to reach 100 hotels Over 140 open and pipeline Over 300 open and pipeline within 10 years of lau
Slide 70: Premium
Appendices: brand key stats Premium Uniquely tailored to target upscale customer segments; 602 open properties in the system; pipeline of 314 more represents future rooms growth of ~47% voco Ruby Hualuxe >100 open hotels across almost Our newest brand with distinct >2x system growth embedded 30 coun
Slide 71: Premium
Appendices: brand key stats Premium This brand segment now accounts for 16% of our system size and 21% of our pipeline; Crowne Plaza had its strongest 1st half openings performance in recent years Crowne Plaza EVEN Strongest 1st half openings since The brand’s first Middle East hotel 2019; >550 open
Slide 72: Essentials
Appendices: brand key stats 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 Approaching 4k hotels in Strongest 1st half of Furth
Slide 73: Suites and Partnerships
Appendices: brand key stats Suites and Partnerships An expanding portfolio of extended stay properties across chain scales; 783 open properties in the system; pipeline of 410 more represents future rooms growth of ~45% Staybridge Suites Atwell Suites Candlewood Suites Recently launched Smart First 7
Slide 74: Suites and Exclusive Partnerships
Appendices: brand key stats Suites and Exclusive Partnerships Iberostar Beachfront Resorts properties added to IHG’s system increased to 20k rooms across 57 hotels; pipeline represents future rooms growth of ~11% Holiday Inn Iberostar Beachfront Club Vacations Resorts Family resorts with vacation 20
Slide 75: 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
InterContinental Hotels Group — H1 2025 Earnings Presentation on 6ix