IHG Showcase its Strong Growth in 2025 Results, Record Hotel Openings and More than One Billion USD in Shareholder Returns, Reinforcing Confidence in the Long-Term Future

IHG Showcase its Strong Growth in 2025 Results, Record Hotel Openings and More than One Billion USD in Shareholder Returns, Reinforcing Confidence in the Long-Term Future

IHG Showcase its Strong Growth in 2025 Results, Record Hotel Openings and More than One Billion USD in Shareholder Returns, Reinforcing Confidence in the Long-Term Future

In 2025, IHG posted outstanding results, highlighting a 13% growth in operating profit from reportable segments and a 16% increase in adjusted earnings per share (EPS). These achievements are a testament to the robust revenue growth, the highest number of hotel openings, and the remarkable return to shareholders of over $1.1 billion. This further boosts IHG’s confidence in the growth drivers of the global hospitality industry.

Revenue Growth and Positive Operating Leverage

IHG reported revenue from reportable segments reaching $2.468 billion in 2025, a 7% increase from the previous year. Notably, revenue from the fee business grew by 7% to $1.897 billion. The operating profit from these segments also saw significant growth, rising 13% to $1.265 billion, with a 12% increase in underlying performance. IHG’s fee margin improved to 64.8%, reflecting a 3.6 percentage point increase, driven by positive operating leverage and growth in ancillary fee streams.

In terms of total revenue under IFRS, IHG posted $5.189 billion, up by 5% from 2024, with operating profit increasing 15% to $1.198 billion. Basic EPS surged by 26%, reaching 490.9¢, reflecting the robust profitability and growth momentum within IHG.

Record Hotel Openings and Strategic Growth in Key Markets

A major milestone for IHG in 2025 was its record hotel openings. The company opened 65,100 rooms across 443 hotels, representing a 10% year-over-year growth. This expansion added to IHG’s global estate, which now includes 1,026,000 rooms across 6,963 hotels.

The company’s global system growth continued with 6.6% gross system growth and 4.7% net system growth, adjusting for rooms removed from The Venetian Resort Las Vegas. IHG signed 102,100 rooms across 694 hotels, marking a 9% year-over-year increase in hotel signings. The company’s global pipeline stands at 340,000 rooms, representing 33% of the current system size, and the growth in these key markets positions IHG for continued expansion.

Driving Ancillary Fees and Profit Margins

The significant increase in IHG’s fee margin, which rose by 3.6 percentage points to 64.8%, can be attributed to positive operating leverage and the continuous expansion of ancillary fee streams. Operating profit from reportable segments reached $1.265 billion, up 13%, including a favorable currency impact of $1 million. Additionally, adjusted EPS grew by 16% to 501.3¢. This increase was supported by adjusted interest expenses of $200 million and a 27% adjusted tax rate.

Cash Flow, Net Debt, and Shareholder Returns

IHG also demonstrated strong cash flow performance in 2025. Net cash from operating activities amounted to $898 million, up from $724 million in the previous year. Similarly, adjusted free cash flow increased to $893 million, compared to $655 million in 2024. Net debt rose by $551 million, driven by $1.1 billion in shareholder returns, including share buybacks and dividend payments, alongside $120 million spent on acquisitions.

IHG continues to return capital to its shareholders. In 2025, the company implemented a $900 million share buyback and paid out $270 million in ordinary dividends. The proposed final dividend of 125.9¢ marked a 10% increase, bringing the total dividend for the year to 184.5¢. IHG has also announced a new $950 million buyback program and expects to return $1.2 billion to shareholders in 2026, as part of a five-year shareholder return strategy exceeding $5 billion.

Strategic Investments and Future Growth

Looking ahead, IHG remains focused on long-term growth drivers, with a target of compound growth in adjusted EPS of 12-15% annually over the medium to long term. In 2025, significant progress was made in expanding its global brands, including the launch of the new premium brand, Noted Collection, and the acquisition of Ruby, an urban lifestyle brand. These initiatives further strengthen IHG’s portfolio and position it for sustained growth in key geographic markets.

Future Impact: Long-Term Growth and Investment in Sustainable Practices

The future effects of IHG’s strategy are evident. With ongoing investment in global brand expansion, technology, and sustainability, IHG is poised to reap the benefits of future demand in the global tourism and hospitality industry. IHG’s strong global pipeline, together with its commitment to sustainability and inclusive growth, ensures that the company will continue to lead the way in the industry, unlocking lasting value for its shareholders and communities around the world.

As IHG presses forward with its focus on technology-led growth, sustainability, and expansion in emerging markets, the company will be at the forefront of the future of global tourism. The success in 2025, with a record number of hotel openings and strong financial performance, is just the beginning of future growth that will positively impact IHG, its shareholders, and the tourism industry for years to come. The future success of IHG’s strategy will not only unlock future growth for the company but will also stimulate global economic development through tourism investment and job creation.

Image Source: IHG

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