InterContinental Hotels Group PLC (IHG) Full Year 2025 Earnings Call Highlights: Record Growth …

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Wed, February 18, 2026 at 10:05 AM GMT+9 4 min read

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**Revenue:** $2.5 billion, a 7% increase.

**EBIT:** $1,265 million, a 13% increase.

**RevPAR Growth:** 1.5% overall, with regional variations.

**Net System Growth:** 4.7%, with 443 hotels opened.

**Fee Margin:** Increased by 360 basis points to 64.8%.

**Adjusted EPS Growth:** 16% increase.

**Share Buyback Program:** $900 million completed in 2025; new $950 million program announced.

**Total Dividend Increase:** Proposed 10% increase.

**Adjusted Free Cash Flow:** $893 million, a $238 million increase.

**Interest Expense:** Increased to $200 million.

**Pipeline Growth:** 102,000 rooms signed, representing 33% future rooms growth.

**Cash Conversion:** 115% of adjusted earnings.

**Net Debt to EBITDA:** 2.5 times, within target range.

**Capital Expenditure:** Key money investment of $177 million.

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Release Date: February 17, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

InterContinental Hotels Group PLC (NYSE:IHG) delivered excellent financial performance in 2025, with RevPAR growth of 1.5% driven by rate and occupancy gains.

The company opened a record 443 hotels, increasing its total estate to over 6,900 hotels and more than 1 million rooms.

Gross system growth was 6.6% and net system growth was 4.7%, marking the fourth consecutive year of accelerating growth.

IHG launched a new $950 million share buyback program, expected to return over $1.2 billion to shareholders in 2026.

The introduction of the new premium collection brand, Noted Collection, and the acquisition of Ruby are expected to strengthen IHG's portfolio and growth potential in the premium segment.

Negative Points

RevPAR in Greater China declined by 1.6% for the year, with occupancy up 0.5 percentage points but rate 2.4% lower.

The removals rate was slightly higher than the 1.5% average, at 1.9%, due to higher removals in China and other regions.

Fee margin in China saw a slight decrease due to strategic one-off cost investments and lower incentive management fees.

The interest expense is expected to increase to a range of $230 million to $250 million for 2026, due to higher average net debt and borrowing costs.

There were some timing slippages in capital expenditure, with some expected outflows in late 2025 shifting into 2026.

Q & A Highlights

Q: If RevPAR doesn’t play a role in 2026 or going forward, do you have other levers to pull to ensure you hit your growth algorithm? A: Elie Maalouf, CEO, explained that IHG has multiple levers, including strong system growth, strategic cost management, and ancillary fee streams. Michael Glover, CFO, added that while ancillary revenues will continue to grow, cost control remains a focus, and the company expects normalization in fee triangulation as new hotels ramp up.

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Q: Can you provide more details on the fee business overheads and the impact of cost efficiencies in 2025? A: Michael Glover, CFO, stated that cost efficiencies were broad-based across regions and functions, with significant savings also achieved in the system fund. This approach allows IHG to reinvest in growth areas like India and integrate acquisitions like Ruby.

Q: How do you view the competitive landscape for credit card and ancillary fees, especially with recent renegotiations by peers? A: Elie Maalouf, CEO, emphasized IHG’s strong growth potential in ancillary fees, having doubled credit card fees since 2023 and aiming to triple them by 2028. He noted that IHG’s growing membership and engagement in IHG One Rewards support this growth, and the company sees no ceiling to its potential.

Q: What is the outlook for branded residences, and how significant will they be in future growth? A: Elie Maalouf, CEO, highlighted the strong demand for branded residences, with fees expected to increase substantially starting in 2027. The current projects are performing well, and the segment is seen as a significant contributor to future growth.

Q: Can you elaborate on the impact of AI on IHG’s operations and growth strategy? A: Elie Maalouf, CEO, explained that AI is integrated across guest acquisition, commercial optimization, and cost efficiency. AI-powered systems enhance search, booking, and loyalty experiences, while also driving revenue management and cost savings. IHG’s tech ecosystem positions it well to capitalize on AI opportunities.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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