Full Year 2025 InterContinental Hotels Group PLC Earnings Call( Live Q&A) Transcript
Key Points
- InterContinental Hotels Group PLC (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.
- 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.
Hello and welcome to IHG's 2025 full year results presentation. I'm Stuart Ford, Senior Vice President and Head of Investor Relations at IHG Hotels and Resorts, and shortly you'll be hearing from Elie Maalouf, our Chief Executive Officer; and Michael Glover, Chief Financial Officer.
Before we proceed, I'm obliged to remind all viewers and listeners that the company may make certain forward-looking statements as defined under US law. Please refer to the accompanying results announcement and the company's SEC filings for factors that could lead actual results to differ materially from those expressed in or implied by any such forward-looking statements.
In addition, the presentation will refer to certain non-GAAP financial measures. Once again, please refer to the accompanying results announcement and SEC filings for reconciliations of these measures to the most directly comparable line items within the financial statements. The results announcement, together with the usual supplementary data pack,
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