Slide 1: 2024 Full Year Results
2024 Full Year Results 18 February 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: 2024: highlights reel
2024: highlights reel True Hosp
Slide 4: Elie Maalouf, Chief Executive Officer
Elie Maalouf Chief Executive Officer 4
Slide 5: 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) 5
Slide 6: Elie Maalouf, Chief Executive Officer
Elie Maalouf Chief Executive Officer 6
Slide 7: 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 8: FY 2024 Financial Review
FY 2024 Financial Review Michael Glover Chief Financial Officer 8
Slide 9: 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 10: 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 11: 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 12: Net system size growth of +4.3% YOY; strong acceleration of openings in Q4
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 13: 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 14: 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 15: 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 16: 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 ($46m FY23) – Operatin
Slide 17: Fee margin +190bps ahead YOY
FY 2024 Financial Review Fee margin +190bps ahead YOY, driven by EMEAA strong trading 1 performance, cost control and non-regional ancillary fees streams TOTAL IHG Americas FY 2024 61.2% FY 2024 81.2% FY 2023 59.3% FY 2023 82.2% FY 2022 55.9% FY 2022 84.3% FY 2021 49.5% FY 2021 82.2% FY 2020 34.1% (
Slide 18: Cash flow: lower FCF and conversion at 94%
FY 2024 Financial Review Cash flow: lower FCF and conversion at 94% due to planned higher 1 spend in the System Fund and increased key money +65 +194 (422) 1,189 Working 1,124 Depreciation capital and and Amortisation Interest and System (237) FY 2024 ($m) tax (69) Dividends Fund2 +8 (45) paid to Sh
Slide 19: 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 20: Continuing our capital allocation approach; further $900m buyback announced
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 21: 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 22: Progress on Strategic Priorities
Progress on Strategic Priorities Elie Maalouf Chief Executive Officer 22
Slide 23: 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 24: 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 25: Growing our brands
Growing our brands os sonarus yournoaune on IHG Bees
Slide 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 33: Large embedded annual fee revenue growth in our pipeline today
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 34: Ruby: highlights reel
Progress on strategic priorities: growing our brands Ruby: highlights reel 34
Slide 35: 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 36: 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 37: Expanding in priority growth geographies
Expanding in priority growth geographies 37
Slide 38: 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 39: 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 40: 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 41: 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 42: Enhancing hotel owner returns
Enhancing hotel owner returns 42
Slide 43: 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 44: 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 45: 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 >145m loyalty members that are ~10x more likely to book direct and spend ~20% more than non-members Loyalty highlights Enterprise
Slide 46: Driving ancillary fee streams
Driving ancillary fee streams 46
Slide 47: 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 48: 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 49: 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 50: 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 51: 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 52: Please hold for the live Q&A
Please hold for the live Q&A which will commence at 9.30am UK time.
Slide 53: 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: 835445 To ask a question, press *1. To withdraw a question, press *2. For operator assistance, press *0.
Slide 54: Appendices: Performance
Appendices FY 2024 Financial Performance
Slide 55: 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 $20
Slide 56: Revenue growth rate analysis FY 2024 vs FY 2023
Appendices: FY 2024 Financial Performance Revenue growth rate analysis FY 2024 vs FY 2023 RevPAR growth % Net rooms growth % Underlying Fee Revenue1 Comparable Total YOY Available Growth % Comments Hotels that have All hotels that were Aggregate number traded in all months open in 2024 and of rooms
Slide 57: Revenue and operating profit 2021-2024 (post-IFRS 17)
Appendices: FY 2024 Financial Performance Revenue and operating profit 2021-2024 (post-IFRS 17) Total Revenue Total Operating Profit¹ Actual US$ 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 58: 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 59: FY 2024 underlying fee business revenue and operating profit non-GAAP 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 60: FY 2023 underlying fee business revenue and operating profit non-GAAP 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 $m Revenue Profit Revenue Profit Revenue Profit Revenue Loss Revenue Profit
Slide 61: Demand drivers of rooms revenue performance
FY 2024 Financial Review Demand drivers of rooms revenue performance 1 IHG Global demand drivers (FY YOY) Americas demand drivers (FY YOY) +10% +8% +8% +7% +7% +7% +6% +6% +6% +5% +5% +4% +4% +4% +3% +3% +2% +2% +2% +2% +3% +3% +3% +3% 0% +2% +2% 0% 0% (2)% Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4
Slide 62: Net system size growth delivered through strength of brands and enterprise platform
Appendices: FY 2024 Financial Performance Net system size growth delivered through strength of brands and enterprise platform FY Net System Size Growth (‘000s) TOTAL IHG Americas (18.2) (8.4) 59.1 987.1 16.8 528.0 946.2 519.6 FY 2023 Openings Exits FY 2024 FY 2023 Openings Exits FY 2024 Europe, Midd
Slide 63: Ordinary shares
Appendices: FY 2024 Financial Performance Ordinary shares Number of shares (m) FY 2024 FY 2023 Opening balance at 1 January 172.3 183.1 Closing balance at 31 December 164.7 172.3 Closing balance excluding treasury1, ESOT and forfeitable shares 157.4 164.5 Basic weighted average shares (excluding tre
Slide 64: Currency impacts
Appendices: FY 2024 Financial Performance Currency impacts ($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 65: 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 66: 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