Form 6-K INTERCONTINENTAL HOTELS For: Aug 11
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SECURITIES
AND EXCHANGE COMMISSION
Washington
DC 20549
FORM 6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 AND 15d-16
OF
THE
SECURITIES EXCHANGE ACT OF 1934
For 11
August 2026
InterContinental Hotels Group PLC
(Registrant's
name)
1
Windsor Dials, Arthur Road, Windsor, SL4 1RS, United
Kingdom
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form
20-F
Form 40-F
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EXHIBIT
INDEX
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99.1
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Half-year
Financial Report dated 11 August 2026
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|
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Exhibit
No: 99.1
InterContinental
Hotels Group PLC
Half
Year Results to 30 June 2026
11 August 2026
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Strong performance with
operating profit from reportable segments1
+10% and Adjusted
EPS1
+13%;
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|||||
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record development activity, with openings and signings both up +8%
on an organic basis;
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|||||
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on track to return $1.2bn+ to shareholders; compelling long-term
growth drivers
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|||||
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6 months ended 30 June
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2026
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2025
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% change
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Underlying1
% change
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Results from reportable segments1:
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Revenue1
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$1,255m
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$1,175m
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+7%
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+6%
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Revenue
from fee business1
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$971m
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$908m
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+7%
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+6%
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Operating
profit1
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$665m
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$604m
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+10%
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+10%
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Fee
margin1
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65.9%
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64.7%
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+1.2%pts
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Adjusted
EPS1
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274.7¢
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242.5¢
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+13%
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IFRS results:
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Total revenue
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$2,659m
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$2,519m
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+6%
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Operating profit
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$671m
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$623m
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+8%
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Basic EPS
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283.3¢
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300.1¢
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(6)%
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Interim dividend per share
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64.5¢
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58.6¢
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+10%
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Net
debt1
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$3,663m
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$3,361m
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+9%
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1.
Definitions for
non-GAAP measures can be found in the ‘Key performance
measures and non-GAAP measures’ section, along with
reconciliations of these measures to the most directly comparable
line items within the Financial Statements.
Trading
and revenue
▪
H1
Global
RevPAR1
+4.1%, with Americas +4.8%,
EMEAA +3.0% and Greater China +3.1%
▪
Average daily rate +2.5%, occupancy +1.0%pts
▪
Total gross revenue1
$18.2bn, +7% at constant
currency
System size and pipeline
▪
Gross system growth +6.5% YOY and net system growth of +5.0%
YOY
▪
Opened 31.5k rooms (197 hotels), a record level, and up +8% YOY
when excluding the Ruby brand acquisition in 2025
▪
Global estate of 1,049k rooms (7,109 hotels)
▪
Signed 49.2k rooms (352 hotels), also up +8% YOY on an organic
basis
▪
Global pipeline of 348k rooms (2,385 hotels), up +3% YOY, and
represents 33% of current system size
Margin and profit
▪
Fee margin1
65.9%, up +1.2%pts, with
fee business revenue1
growth of +7% exceeding
cost growth of +4%
▪
Operating profit from reportable
segments1
of $665m, up +10%, after
the impact of $5m insurance-related expense on a fire-damaged
leased hotel, and $6m net benefit from the YOY movement in average
currency rates
▪
IFRS operating profit of $671m includes System Fund and
reimbursables $9m profit (2025: $31m profit) and $3m exceptional
costs (2025: $12m)
▪
Adjusted EPS1
of 274.7¢, up +13%,
includes adjusted interest expense1
of $106m (2025: $91m), an
adjusted tax1
rate of 26% (2025: 26%) and
a 4.0% reduction in the basic weighted average number of ordinary
shares
▪
IFRS basic EPS includes foreign exchange losses of $7m (2025: gains
of $79m) predominantly due to translation of intra-group monetary
assets and liabilities held between subsidiaries with differing
functional currencies
Cash flow and net debt
▪
Net cash from operating activities of
$355m (2025: $312m) and adjusted free cash flow1
of $360m (2025: $302m),
driven by the increase in profit
▪
Net debt1
increase of $330m since the
start of the year, driven by $564m related to shareholder returns
through dividend payments and share buybacks; $11m foreign exchange
net favourable impact on net debt
▪
Trailing 12-month Adjusted
EBITDA1
of $1,392m, +11% YOY; net
debt:adjusted EBITDA ratio of 2.63x
Shareholder returns
▪
$950m share buyback programme for 2026, 42% completed as at 30
June; interim dividend +10% to 64.5¢
▪
On track to return $1.2bn+ to shareholders in 2026, equivalent to
5.8% of market capitalisation at start of year
|
Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts,
said:
|
“Our
diverse global footprint and better-than-expected demand in most
markets around the world delivered strong RevPAR growth of +4.1% in
the first six months of 2026. Trading in the US accelerated in the
second quarter, growth in Greater China continued and a good
performance elsewhere in our EMEAA region helped offset challenges
in the Middle East. This robust revenue growth, combined with an
acceleration in net system growth, an efficient cost base driving further
margin expansion and the ongoing return of surplus capital to
shareholders, delivered adjusted EPS growth of
+13%.
We had record levels of development activity with almost 200 hotel
openings in the first half. This drove net system growth of 5% and
expanded our global estate to 7,100 hotels. Our pipeline grew to
2,400 hotels with increases in all three regions and 352
signings in total – almost two a day – representing +8%
growth year-on-year.
Thanks
to the hard work of our teams, we’re making excellent
progress on growing our brands, expanding in key geographic
markets, developing our leading technology and enterprise platform,
and driving ancillary fee streams. While there are ongoing impacts
from the Middle East conflict, including some wider disruption to
international travel flows, we continue to expect these to be fully
offset by growth in demand elsewhere. This demonstrates the
strength of IHG’s business model which is strategically
diversified and resilient, with our ability to capture demand
across geographies, chainscales and the different stay occasions of
business, leisure and groups travel, as well as being heavily
weighted to domestic and intra-regional travel.
We
remain on track to meet full year consensus profit and earnings
expectations. We are also confident in the successful delivery of
our growth algorithm, which is driven by the strength of
IHG’s enterprise platform and our ability to further
capitalise on our scale, leading positions and the attractive
long-term demand drivers for our markets.”
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For
further information, please contact:
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Investor
Relations:
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Stuart
Ford (+44 (0)7823 828 739); Kate Carpenter (+44 (0)7825 655
702);
Joe
Simpson (+44 (0)7976 862 072)
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Media
Relations:
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Neil
Maidment (+44 (0)7970 668 250); Mike Ward (+44 (0)7795 257
407)
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Presentation
for analysts and institutional shareholders:
A
pre-recorded webcast presented by Elie Maalouf, Chief Executive
Officer, and Michael Glover, Chief Financial Officer, will be
available from 7:00am (London time) today, 11 August 2026, at
www.ihgplc.com/en/investors/results-and-presentations.
This same website link also provides access to the full release and
supplementary information pack covering RevPAR, system size and
pipeline data.
A live
Q&A session will be hosted later this morning at 9:30am (London
time). This can be listened to via www.ihgplc.com/en/investors/results-and-presentations
(pre-registration required). Analysts and institutional investors
wishing to ask questions are required to register at
the IHG Hotels & Resorts
Half Year 2026 Results Live Q&A Registration Page
(https://registrations.events/direct/LON6705197). Dial-in
details for the Q&A are provided when you register and will
appear in the calendar invite sent to you following
registration.
An
archived replay including the Q&A session is expected to be
available within 24 hours and will remain available at www.ihgplc.com/en/investors/results-and-presentations.
About
IHG Hotels & Resorts:
IHG Hotels & Resorts (tickers: LON:IHG for Ordinary
Shares, ISIN: GB00BHJYC057; NYSE:IHG for ADRs, ISIN: US45857P8068)
is a global hospitality company, with a purpose to provide True
Hospitality for Good.
With a
family of 21 hotel brands and IHG One
Rewards, one of the world’s largest hotel loyalty
programmes with over 160 million members, IHG has more than one
million rooms across 7,100 hotels in over 100 countries, and a
development pipeline of a further 2,400 properties.
-
Luxury & Lifestyle: Six Senses,
Regent,
InterContinental,
Vignette
Collection, Kimpton,
Hotel
Indigo
-
Premium: Noted
Collection, voco,
Ruby,
HUALUXE,
Crowne
Plaza, EVEN
-
Essentials: Holiday Inn
Express, Holiday Inn Hotels
& Resorts, Garner,
avid
-
Suites: Atwell Suites,
Staybridge
Suites, Holiday Inn Club
Vacations, Candlewood
Suites
-
Exclusive Partners: Iberostar Beachfront
Resorts
InterContinental
Hotels Group PLC is the Group’s holding company and is
incorporated and registered in England and Wales. Approximately
400,000 people work across IHG’s hotels and corporate offices
globally.
Visit
us online for more about our hotels and
reservations and IHG One
Rewards. To download the IHG One Rewards app, visit the
Apple
App or Google Play
stores.
For our
latest news, visit our Newsroom and
follow us on LinkedIn.
Cautionary note regarding forward-looking statements:
This
announcement contains certain forward-looking statements as defined
under United States law (Section 21E of the Securities Exchange Act
of 1934) and otherwise. These forward-looking statements can be
identified by the fact that they do not relate only to historical
or current facts. Forward-looking statements often use words such
as ‘anticipate’, ‘target’,
‘expect’, ‘estimate’, ‘intend’,
‘plan’, ‘goal’, ‘believe’ or
other words of similar meaning. These statements are based on
assumptions and assessments made by InterContinental Hotels Group
PLC’s management in light of their experience and their
perception of historical trends, current conditions, expected
future developments and other factors they believe to be
appropriate. By their nature, forward-looking statements are
inherently predictive, speculative and involve risk and
uncertainty. There are a number of factors that could cause actual
results and developments to differ materially from those expressed
in, or implied by, such forward-looking statements. The main
factors that could affect the business and the financial results
are described in the ‘Risk Factors’ section in the
current InterContinental Hotels Group PLC’s Annual report and
Form 20-F filed with the United States Securities and Exchange
Commission.
|
Summary of recent trading and outlook
|
Key
trends by region, chainscale and stay occasion
Reflecting
the breadth of our global footprint, RevPAR grew +4.1% in H1 2026
(Q1 +4.4%, Q2 +3.5%).
In the
Americas, H1 RevPAR grew
+4.8% (Q1 +3.6%, Q2 +5.4%), with rate +3.3% and occupancy +1.0%pts.
US RevPAR grew by +4.5% in H1, with growth of +3.4% in Q1
accelerating to +5.2% in Q2. This uptick reflected supportive
trading conditions across all demand drivers as a result of a
stronger US economy, as well as comparatives that became easier in
Q2. From mid-June, there was also the benefit of strong growth in
the FIFA World Cup match locations, which is estimated to have
added approximately 1.0%pts to the Americas region RevPAR growth
for Q2; there was some further benefit in July, which is expected
to benefit Q3 to a lesser degree. It is estimated that the event
will contribute approximately 0.4%pts to Americas RevPAR growth for
the full year 2026. Rooms revenue for the region on a comparable
hotel basis in H1 was strongest for Groups bookings which were up
+10% YOY, with Leisure +4% and Business +3%. There was also RevPAR
growth in every brand both in Q2 and H1
overall.
For EMEAA, H1 RevPAR grew +3.0%, with rate +1.8% and occupancy
+0.8%pts. Strong RevPAR growth of +5.6% in Q1 was followed by +0.6%
in Q2, reflecting the impact of the conflict in the Middle East.
This sub-region, which represents 19% of EMEAA’s system size
but just 5% of IHG globally, declined -2% in Q1 then -19% in Q2.
The rest of the EMEAA region experienced RevPAR growth of +7% in Q1
and +4% growth in Q2. The growth in Q2 included +3.1% in the UK,
+2.3% in Continental Europe and +6.0% in East Asia &
Pacific.
In Greater China, H1 RevPAR grew +3.1%, with rate +1.0% and
occupancy +1.1%pts. Q1 RevPAR was particularly strong at +5.7%,
supported by excellent Leisure demand over the Chinese New Year
festive period. This was followed by Q2 growth of +0.8%, which
included an impact from public holiday timings. For H1 overall,
RevPAR grew +4% in Tier 1 cities, Tier 2-3 cities were slightly
down, and Tier 4 cities were up +8% driven by resort locations.
There was also notably strong growth in Taiwan and Hong
Kong.
Global RevPAR growth of +4.1% in H1 included increases in every
brand, 3-4% growth for each of the Midscale, Upper Midscale and
Upscale chainscales, with our brands in the Upper Upscale and
Luxury chainscales growing the strongest.
The desire for travel and experiences drove growth in all three
guest stay occasion categories. H1 global rooms revenue on a
comparable hotels basis was led by Groups at +6% YOY (+4% rate, +2%
room nights), followed by Leisure +3% (+2% rate, +1% room nights),
and then Business +2% (rate +2%, room nights flat).
Outlook: attractive long-term structural growth drivers for both
demand and supply
●
Hotel industry revenue has outpaced global economic growth in 19
out of 26 years between 2000 and 2025, with a CAGR of +4.2% (versus
+2.9% CAGR for GDP).
●
The World Travel and Tourism Council (WTTC) expects the industry to
add $12tn to global GDP in 2026, accounting for 10% of total
output, a +3.2% growth on 2025 and ahead of wider global economic
expansion.
●
Whilst in some countries geopolitical risk and the economic outlook
present shorter-term uncertainties, overall conditions for the
global industry remain positive for continued long-term growth,
supported by stable employment markets and robust levels of
business activity and economic growth. Research continues to point
to consumers prioritising spend on travel and experiences, and
business surveys indicate expectations for ongoing growth in
corporate travel budgets.
●
For 2026 global economic output growth of +3% is still expected on
top of +3.5% last year, according to the latest update of the
IMF’s World Economic Outlook. Meanwhile, forecasts for global
air passenger travel have recently increased, with Oxford Economics
now expecting growth of +4.3%, up from a +3.6% forecast in
March.
●
Global hotel room nights consumed have grown at a CAGR of +2.7%
over the decade to 2025 according to Oxford Economics, with a
forecast CAGR of +3.6% through to 2035. The US market is expected
to increase by a +2.4% CAGR from 2.2 billion to 2.8 billion room
nights over the next decade, and China to be faster at a +4.0%
CAGR, with the rest of world (excluding both the US and China) also
forecast to grow at a CAGR of +3.8%.
●
Global hotel room net new supply grew at a CAGR of +2.3% over the
decade to 2025, and was +1.0% in the US, according to STR. Their
latest forecasts for US industry net supply growth are +0.4% in
2026 and +0.8% in 2027, with growth rates increasing to around +1%
in the subsequent three years. Industry net new supply growth is
forecast to be stronger in many emerging markets and high economic
growth countries within our EMEAA region and in Greater
China.
●
Over the long term, and in addition to the industry’s RevPAR
growth, further new hotel supply will still be needed to satisfy
the demands of growing populations and rising middle classes, to
drive business and commerce, and to meet the inherent desire for
people to travel, connect in person and seek out new
experiences.
●
Global leading hotel brands are expected to continue their
long-term trend of taking market share. In periods when developers
are adding less new supply, RevPAR growth from existing room
inventory is expected to be stronger, as are conversion
opportunities, which IHG has proven highly successful at
capturing.
|
Summary of system size and pipeline progress
|
Openings
and signings to date in 2026 reflect the strength of IHG’s
brand portfolio and the overall enterprise platform that we provide
to hotel owners, together with the long-term attractiveness of the
markets we operate in:
▪
Global system of 1,049k rooms (7,109 hotels) at 30 June 2026,
weighted 65% across midscale segments and 35% across upscale and
luxury
▪
Gross system growth +6.5% YOY, with a record 31.5k rooms opened
across 197 hotels in H1 2026; openings increased +8% YOY excluding
additions from the Ruby brand acquisition (0.6k in H1 2026, 2.7k
rooms in H1 2025); 16.6k rooms (114 hotels) opened in
Q2
▪
Removal of 8.9k rooms (51 hotels) in H1 2026, representing a
removal rate of 1.5% over the last 12 months, a rate which has
trended back down to the anticipated underlying rate of ~1.5% on
average over the medium to long term
▪
Net system growth of +5.0% YOY
▪
Signed 49.2k rooms (352 hotels) in H1 2026 an increase of +8% YOY
excluding Ruby (5.7k rooms in H1 2025); 27.8k rooms (189 hotels)
signed in Q2
▪
Signings mix drives pipeline to a weighting of 52% across midscale
segments and 48% across upscale and luxury, which over the coming
years will continue to drive a more balanced system mix and fee
stream
▪
Conversions represented 43% of openings in H1 2026 and 49% of
signings
▪
Global pipeline of 348k rooms (2,385 hotels), representing 33% of
current system size and growth of +3% YOY
▪
Around 50% of the global pipeline is under
construction
System and pipeline summary of movements in H1 2026 and closing
positions (rooms):
|
|
System
|
Pipeline
|
||||||
|
|
Openings
|
Removals
|
Net
|
Total
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YOY%
|
YTD%
|
Signings
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Total
|
|
|
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|
|
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Global
|
31,500
|
(8,946)
|
22,554
|
1,048,731
|
+5.0%
|
+2.2%
|
49,196
|
347,691
|
|
Americas
|
8,048
|
(5,822)
|
2,226
|
531,420
|
+1.8%
|
+0.4%
|
12,533
|
107,382
|
|
EMEAA
|
8,229
|
(2,006)
|
6,223
|
293,825
|
+6.3%
|
+2.2%
|
19,522
|
124,470
|
|
Greater China
|
15,223
|
(1,118)
|
14,105
|
223,486
|
+11.7%
|
+6.7%
|
17,141
|
115,839
|
The
regional performance reviews provide further detail of the system
and pipeline by region, and further analysis by brand and by
ownership type.
|
CHIEF EXECUTIVE'S REVIEW
|
|
IHG's strategic priorities
|
Our
purpose of True Hospitality for Good is at the heart of our brands
and culture, and our focus is on what is central to our customers:
being the hotel company of choice for guests and owners. Our
strategic priorities are to deliver:
▪
Relentless Focus on Growth: a targeted
approach to expanding our brands in high-value and growth
markets
▪
Brands Guests and Owners Love: our
explicit intention to deliver for both groups, every
time
▪
Leading Commercial Engine: investment in
the technology and tools that drive commercial success and make the
biggest difference to guests, owners and hotel teams
▪
Care for our People, Communities and Planet: a focus aligned
to our 2030 Journey to Tomorrow plan
These
strategic pillars allow us to build on prior investments in our
brand portfolio, IHG One Rewards and the wider enterprise, and will
drive IHG towards realising its full potential in a sustainable and
responsible way. Over the long term, with disciplined execution,
our strategy creates value for all our stakeholders by delivering
growth in profits and cash flows, which can be reinvested in our
business and returned to shareholders, reflecting how IHG delivers
on our growth algorithm and investment case.
In
2026, we are making significant further progress on these
priorities, including:
1.
Growing our
brands
2.
Expanding in key
geographic markets
3.
Developing our
leading technology and enterprise platform
4.
Driving ancillary
fee streams
5.
Delivering
increased dividends and returning surplus capital to our
shareholders
Each of
these are summarised below. Together, these have driven further
progress in H1 2026 on our growth algorithm, which we first set out
in 2024 as central to delivering value creation over the medium to
long term.
|
Delivering value creation over the medium to long term
|
IHG’s
growth algorithm:
Building
on our strong track record of driving growth and shareholder
returns, in 2024 IHG set out a clear framework for value creation
over the medium to long term:
▪
high-single digit
percentage growth in fee revenue annually on average over the
medium to long term, driven largely by the combination of RevPAR
growth and net system growth;
▪
100-150bps
expansion in fee margin annually on average over the medium to long
term, driven largely by operational leverage;
▪
~100% conversion of
adjusted earnings into adjusted free cash flow, on average over the
medium to long term;
▪
sustainably growing
the ordinary dividend;
▪
returning
additional capital to shareholders, such as through regular share
buyback programmes, further enhancing EPS growth; and
▪
the opportunity for
compound growth in adjusted EPS of +12-15% annually on average over
the medium to long term, driven by the combination of the above and
including the assumption of ongoing share buybacks.
IHG’s
total fee revenue growth is largely driven by the combination of
RevPAR and net system growth. We expect positive operational
leverage as fee revenues are anticipated to grow faster than the
increase in our cost base. Additional drivers of this include
structural shifts over time such as a growing proportion of
franchising and increasing scale efficiencies in EMEAA and Greater
China.
In
addition to fee margin progress from operational leverage, IHG
actively develops further opportunities to drive fee margin over
the longer term. These include cost base efficiency and
effectiveness initiatives, and the expansion of ancillary fee
streams including growth from loyalty point sales, co-brand cards
and branded residences.
Summary of progress on our
growth algorithm in the first half of 2026:
IHG made strong progress on all components of our growth
algorithm:
▪
+7% growth in fee
revenue1;
▪
+120bps expansion in fee
margin1;
▪
>100% conversion of adjusted
earnings1
into adjusted free cash
flow1
on a trailing 12-month
basis;
▪
+10% growth in the ordinary dividend, a growth rate consistent with
that delivered for each of the last four years;
▪
42% progressed through 2026’s $950m share buyback programme
to return additional capital to shareholders; and
▪
+13% growth in adjusted
EPS1
through the combination of
the above.
The
+120bps of fee margin1 expansion was driven
by operational leverage, with +7% growth in fee business
revenue1
achieved on a 4% YOY increase in the fee business cost base.
Historically over the longer term, IHG has a strong track record of
containing annual fee business costs to a low single digit
percentage average annual increase, and we expect to continue this
in the future. For the full year of 2026, the fee business cost
base is still anticipated to increase within the range of
1-3%.
In the
prior two years, additional fee margin1 expansion has come
from changes in arrangements leading to incremental fees from the
US co-brand credit card agreements and from the sale of certain
loyalty points (together with certain other ancillary revenues).
These changes in arrangements for these two fee streams achieved
the anticipated incremental step-ups within IHG's results from
reportable segments in 2024 and 2025, with growth in fees and fee
margin1
therefore normalised coming into 2026. From this year onwards, the
further growth that is anticipated from these fee streams therefore
contributes to the 100-150bps expansion in fee margin annually on
average over the medium to long term.
The combination of the fee revenue growth and fee
margin1
expansion drove a +10%
increase in operating profit from reportable segments to $665m for
the first half of 2026. Adjusted interest
expense1
of $106m rose +16% on the
first half of last year, driven largely by the effect of returning
capital to shareholders; our expected range for adjusted interest
expense1
for 2026 has narrowed to
$230-240m. Our adjusted tax1
rate was 26% in the first
half of the year, which was broadly level with the comparable
period last year, and a rate around 26-27% continues to be
anticipated for the near term based on current legislation. Our
buyback programmes led to a further 4.0% reduction year-on-year in
the basic weighted average number of ordinary shares, which
additionally enhances EPS growth. The combined effect of our growth
algorithm drivers was therefore an increase in adjusted EPS of
+13%.
The
Board is confident of a continued delivery of further value
creation over the medium to long term, consistent with our growth
algorithm.
|
|
1.
Definitions for
non-GAAP measures can be found in the ‘Key performance
measures and non-GAAP measures’ section, along with
reconciliations of these measures to the most directly comparable
line items within the Financial Statements.
|
Strategic and operational highlights to date in 2026
|
1.
Growing our brands
As part
of our relentless focus on growth, we look to grow the reach of our
overall brand portfolio as well as each of our individual brands,
supported by our masterbrand, loyalty programme and wider
enterprise. We have expanded from 10 brands at the start of 2015 to
21 brands in 2026 and delivered growth across the entire portfolio.
The 11 newer brands now account for 11% of current system size and
23% of the pipeline reflecting rapid growth from here, while the 10
brands that have been in IHG’s portfolio for longer still
have a current pipeline that represents strong future growth of 29%
on their existing system size. Successful brand growth and
awareness is inherently linked to strong commercial performance and
achieving attractive returns on investment for our hotel owners,
all resulting in IHG driving sustainable growth in our system size
and fees. Key developments and highlights to date in 2026
included:
▪
Acquired brands growing very strongly.
Ruby,
the premium urban lifestyle brand acquired in February 2025, has
already grown from 30 open and pipeline hotels at the time of
acquisition to 42 today. The first two signings in the US will take
the brand to New York and Chicago, and with Ruby’s premium
urban micro format and franchise-friendly model delivering
attractive owner economics, we see excellent opportunities to
further expand Ruby’s strong European base to elsewhere in
the Americas and Asia. Just over a decade on from IHG’s first
brand acquisition, Kimpton, this brand
has gone from 78 open and pipeline hotels to double that at 159
currently, which will take its presence to more than 25 countries.
When the first 51% of the Regent brand was
acquired in 2018 there were 9 open and pipeline hotels, and today
there are 25, and we completed the next pre-agreed step to acquire
the remaining stake in the brand in recent months. Six Senses at the
time of acquisition in 2019 had 16 open and 18 pipeline hotels, and
today IHG has already significantly expanded these to 27 open
hotels and a pipeline of 33 more. In March, Six Senses London
opened, a further global flagship property as the brand develops
its upper luxury presence in leading urban leisure locations as
well as resort destinations, with numerous further iconic openings
scheduled over the coming years.
▪
Organically created brands expanding at
pace. In recent years, four of the newer brands added to
IHG’s portfolio have been created to target more hotels
joining our system as conversion or collection brands. Our
versatile premium conversion brand, voco, now stands at
148 open hotels across more than 35 countries since launching in
2018, with a further 122 pipeline properties. Our Luxury &
Lifestyle brand, Vignette Collection,
continues to track ahead of its goal to reach 100 hotels in a
decade, with 38 open since launching in 2021 and 46 in the
pipeline. Our midscale conversion brand, Garner, has reached
222 open and pipeline hotels across 17 countries in less than three
years since launch, making it IHG’s fastest-ever scaling of a
brand globally. To further capitalise on guest and owner demand in
the large and fast-growing premium segment, IHG launched
Noted
Collection in February, with the first three signings
already achieved. Addressing other customer segments, avid, our midscale
new-build brand which first opened in 2018, now has 87 open hotels
and 118 more in its pipeline. Whilst Atwell, created to
expand IHG’s presence in studio suites and related stay
occasions, has reached 11 openings with a further 61 pipeline
properties.
▪
Powering ahead with our established
brands. InterContinental, Hotel
Indigo, HUALUXE, Crowne Plaza, EVEN, Holiday Inn, Holiday Inn
Express, Staybridge Suites and Candlewood Suites each have
pipelines representing at least 20% of current system size. Across
these brands, we signed more than 200 hotels in the first half of
2026, ahead of last year. We continuously invest in new formats to
deliver outperformance in key guest metrics and further increase
owner returns. For example, our world-leading Holiday Inn Express
brand, which recently exceeded 3,300 open hotels and has nearly 700
more in the pipeline, continues to benefit from new openings across
EMEAA in its Gen 5 design, which introduces even more flexible and
experiential environments, including the EXPRESS Café &
Bar. Hotel Indigo, now with 198 open hotels and another 134 in its
pipeline, is benefiting from the brand’s recently launched
Design Studio service, which helps to lower build and conversion
costs and accelerates the time it takes to open.
▪
Continuing to accelerate quicker-to-market
conversions. Our four conversion-focused brands –
voco, Garner,
Vignette Collection and Noted Collection
– represented around one-third of conversion signings in the
first half of 2026, with the remaining two-thirds of conversion
signings across our other brands. Conversion signings are
frequently for portfolios of hotels and often multi-brand –
an example includes 11 hotels across Germany, Belgium and France
currently trading as PentaHotels, which will be converted to our
Holiday Inn, voco and Garner brands. Three other multi-brand
portfolio deals were signed in Vietnam, India and Japan during H1.
Owners are drawn to the strength of IHG's enterprise, the high
contribution of IHG One Rewards members to their hotels, our
AI-powered revenue management, and IHG's leading marketing and
distribution.
▪
IHG selection for US Air Force lodging a
further reflection of the strength of our brands and overall
enterprise. In May 2026, IHG and our partner Centinel Public
Partnerships LLC (Centinel) were selected by the Department of the
Air Force (DAF) as its commercial partner for on-base lodging. IHG
and Centinel have already worked together since 2009 to provide
equivalent services through the Privatization of Army Lodging (PAL)
programme, covering a portfolio of 70+ hotels and 12,000+ rooms
across 40 army installations. Finalising the new 50-year agreement
with DAF is in progress and operational transfer of the hotels into
IHG's system will begin later in 2027. This is expected to
initially include hotels on 23 Air Force installations across the
US and its territories.
▪
Growing in every chainscale from Midscale to
Upper Luxury. Our more recent brand additions in Midscale of
avid and Garner, together with Candlewood Suites in the same
chainscale, currently represent 6% of system size and 10% of our
pipeline. Upper Midscale, driven by the Holiday Inn Brand Family,
is 60% of system size and 43% of pipeline. Our brands in Upscale
account for 20% of system size and 26% of pipeline. Meanwhile, in
Luxury & Lifestyle, our highest fee-per-key category, these six
brands represent 14% of system size and 21% of pipeline. Our brand
development and overall strength across our leading technology and
enterprise platform are successfully fuelling growth across the
portfolio.
▪
Driving deeper brand awareness and guest
connections. Our individual hotels continue to receive
important recognition. There was a growing number of highly
influential awards from Forbes Travel Guide, Condé Nast, Vogue
and Travel + Leisure across hotels in our Luxury & Lifestyle
category. Kimpton was also
ranked as the #1 Upper Upscale hotel brand in North America based
on guest satisfaction by JD Power, and, within Essentials,
Holiday
Inn has once again been ranked as the most trusted hotel
brand among US consumers. Other examples of building brand
awareness include Regent's expanded
partnerships across global film festivals, and renewed IHG
masterbrand partnerships with Rugby Australia for a further three
years following IHG’s support of last year’s Lions
Tour. In China, an esports partnership King Pro League (KPL),
alongside student-exclusive offers via the IHG One Rewards WeChat
channel and curated itineraries, are strengthening guest
connections and long-term loyalty with next generation travellers
amid the country’s 230 million Gen Z consumers. We are
reinforcing our brand as a leading employer through investment in
talent development, career pathways, wellbeing and inclusion. To
that end, we are pleased that IHG has additionally been recognised
as a top employer in the Middle East in the 2026 Great Place to
Work rankings.
2.
Expanding in key geographic markets
IHG
brands are already in over 100 countries. There are many
opportunities to develop further in existing markets by introducing
IHG brands not yet present, as well as entering new countries with
no current IHG presence at all. Existing markets may also be high
growth markets, particularly where they are developing economies
with low penetration of branded hotels. Others may already be high
value and developed markets, but where our evolved brand portfolio
can target an increased market share. Key developments and
highlights to date in 2026 included:
▪
Reaching new markets. In the first half
of 2026, there were 13 opening debuts to new countries for
individual IHG brands, including two countries with no prior IHG
presence. Garner has become IHG’s fastest ever brand to scale
globally, now already present in 12 countries with important debut
openings in the first half of 2026 including in Greater China.
Vignette Collection and voco also entered six more countries
between them, including voco in Malaysia, Vignette in Italy and
both brands entering Turkey. Kimpton marked its debut opening in
Greece, and the debut of Hotel Indigo in Turks & Caicos will
soon be followed by both Kimpton and InterContinental. The opening
of Six Senses London marked the brand’s 23rd country across its
portfolio of 27 hotels in exclusive locations around the
world.
▪
Growing in each of our three largest
markets. Our US estate reached 4,129 hotels, with net system
growth of +1.4% YOY, and is set to accelerate in the coming years
supported by the US pipeline representing 20% of current system
size. In Greater China, in early 2026 we celebrated our 900th
opening, and net system growth accelerated to +11.7% YOY with
another record period of both hotel openings and signings, the
latter taking the pipeline to 591 hotels, which represents +52%
future rooms growth. After the US and China, our next largest
country market is the UK with 378 hotels, with net system growth of
+4.1% YOY driven largely by conversion activity.
▪
Expanding in other high value, developed
markets. Germany is one of Europe’s largest hotel
markets, with strong domestic consumption and inbound travel, and
is also one of the largest sources of international outbound travel
globally. Net system growth was +7.0% YOY in Germany, and
IHG’s combined open and pipeline hotels now stand at 253,
more than double the 110 at the start of 2024. With strong progress
in many other priority country markets, our Europe sub-region is
approaching 1,000 open hotels, with over 250 more in the pipeline.
Japan, another example of a high value developed market, now has 62
open hotels and 34 in the pipeline, with 3 openings and 14 signings
achieved in the first half of 2026. IHG has also further grown its
presence of 73 hotels in Australia and New Zealand.
▪
More than doubling IHG’s presence in high
growth, emerging markets. In India, a record 24 signings in
the first half of 2026 took the pipeline to 110 hotels, on top of
53 already open, with this rapidly accelerating momentum supporting
IHG’s ambition to reach more than 400 open and pipeline
hotels within the next five years. Signings included a landmark
five-hotel portfolio with India’s largest private airport
operator, and three signings for the InterContinental brand.
Saudi Arabia has 48 open and 63 pipeline hotels, with the
country set to have all six of IHG’s Luxury & Lifestyle
brands present by 2028. Across the emerging markets in our East
Asia & Pacific sub-region, we have 144 open hotels currently
and almost 100 more properties in the pipeline. Notable
developments in the period include signing a four-brand portfolio
in Ho Chi Min City, Vietnam, and a further five signings in
Thailand.
3. Developing our leading technology and enterprise
platform
Supported
by continued investment in our enterprise, 83% of room revenue at
hotels in our system was booked through IHG-managed channels and
sources. This is a key indicator of value-add, the success of our
commercial engine across technology platforms, and of our sales and
distribution channels. We are committed to delivering higher-value
revenue at lower cost of acquisition as part of our owner
proposition. Key developments and highlights to date in 2026
included:
▪
Strong mobile and digital channels
growth. IHG’s direct digital booking channels
delivered 26% of total room revenue in the first half of 2026.
Usage of the IHG app continues to drive this, with visits growing
+9% in the last 12 months and 65% of elite loyalty members used the
app during this period. Our mobile and digital channels maximise
guest choice and value through IHG’s Guest Reservation System
(GRS). Recent developments, which are activated by rolling out
cloud-based Property Management Systems (PMS), provide hotel owners
with a full-service digital solution from initial search and
booking flow, and throughout the guest stay. These include new
pre-arrival guest messaging which will activate further upsell
opportunities, improved mobile check-in, digital room key
solutions, enhanced digital F&B ordering and tipping services,
and additional digital guest hub and in-stay enquiry services over
communications platforms such as WhatsApp. These services will be
made available at a lower cost to owners, reflecting the scale
advantages of IHG’s enterprise platform.
▪
Enhancing guest acquisition through AI.
Latest developments include:
o
IHG’s
new hotel content management
platform is in phased rollout over 2026 across our app and
all IHG booking websites, making it easier and faster for hotel
owners to create and update compelling content to showcase their
properties using AI. This includes machine translation into
multiple languages and optimised AI search of structured content,
new media types such as video, 360 images, floor plans and virtual
tours, and enriched information on the properties and nearby
attractions.
o
A new Customer Relationship Management (CRM)
platform is also in development this year to help deepen loyalty
and drive guest satisfaction, delivering a unified guest view that
will support better guest engagement and more tailored, high-touch
personalised experiences during booking and
on-property.
o
Our investments in
cloud-based data and AI are also unlocking marketing efficiencies. More
personalised marketing campaigns employing predictive analytics
have been driving 3-4x higher returns on investment. Other
AI-driven technology is creating improvements in relevancy, speed
and investment return, such as using GenAI to localise TV
advertising for individual countries, which significantly reduces
the development timeline and costs, whilst increasing guest
relevancy.
o
In July we launched
conversational search across
our websites and app to allow travellers to describe in their own
words what they are looking for. Similarly, our ChatGPT plug-in
recommends IHG hotels based on travellers’ preferences,
surfacing real-time availability, pricing, interactive maps and
amenities, helping guests move naturally from discovery to
comparison and onward to IHG’s direct booking channels. IHG
is also participating in Google’s Agentic AI booking pilot
which allows guests to book hotels within Google’s AI Mode
experience (which are still processed as direct bookings for IHG),
or guests are redirected to IHG.com to book loyalty member rates.
Also with Google, IHG is part of their Direct Offers pilot to
surface special promotions directly within a person’s
AI-assisted trip planning that provides a link to book directly
with IHG.
▪
Driving additional commercial optimisation
across IHG’s technology ecosystem. Our new Revenue
Management System (RMS) is delivering revenue uplifts and market
share gains for owners and receiving very positive user feedback.
The RMS is fully rolled out across our global estate since the
start of this year, and provides hotel owners with a best-in-class
cloud-based platform that incorporates data science, AI machine
learning and forecasting tools to deliver advanced insights.
Similarly, we are providing owners with best-in-class cloud-based
Property Management Systems (PMS) that optimise their day-to-day
operations and deliver improvements such as streamlined front desk
processes, colleague onboarding and training. These next-generation
PMS solutions from HotelKey, Oracle and Shiji will reach 4,000
hotels by the end of 2026. Meanwhile, Digital Check-Out has already
reached over 4,000 hotels, and we have further grown IHG’s
digital chatbot service, which helps solve guest queries, saves
hotel teams time and improves customer satisfaction, and is on
track to top 6 million conversations this year.
▪
Boosting loyalty and brand awareness even
further. IHG One Rewards had over 160 million members
globally at the start of 2026. Gross enrolments continue to grow
strongly, up +15% YOY in the first half of the year, and loyalty
penetration further increased to 67% of all room nights booked,
topping 73% in the US. Loyalty members typically spend ~20% more in
hotels than non-members and are around 10x more likely to book
direct. The number of Reward Night redemptions continues to grow
and there was +7% growth YOY in the number of Milestone Rewards
selected, reflecting the active engagement of loyalty members. IHG
also continues to add loyalty partnerships through airlines and
business traveller programmes, including in the first half of 2026
with ANA Mileage Club, the programme for Japan’s largest
airline, and another with Germany’s leading consumer loyalty
programme, PAYBACK, offering new ways for its more than 35 million
customers to earn and redeem rewards. Masterbrand awareness of both
IHG Hotels & Resorts and IHG One Rewards continues to
strengthen through key partnerships and campaigns, including our
ongoing sponsorship of premier sporting events like Six Nations
Rugby and the US Open, as well as the ongoing roll-out of the
masterbrand endorsement for our hotels ‘By IHG’ across
on-property, digital and marketing.
▪
Delivering on the scale and skill advantages of
the System Fund. The System Fund is managed for the benefit
of hotels in the IHG system, and not to a surplus or deficit for
IHG over the longer term. System Fund revenues in the 2025
financial year totalled $1.7bn, +25% more than 2019. In the first
half of 2026, System Fund revenues increased a further +7% YOY,
which, together with our focus on driving efficiencies and
effectiveness, supports the strength of funding arrangements.
Following a review in 2024 and leveraging the growing scale and
efficiency improvements in the System Fund, IHG lowered from the
start of that year its standard loyalty assessment fee that owners
pay into the Fund and increased certain Reward Night reimbursements
owners receive from the Fund when points are redeemed for stays,
which additionally improves owner economics. From the Marketing
& Reservation fee that owners pay into the Fund, expenditure by
the Fund on marketing in the 2025 financial year totalled $542m,
+18% higher than 2019, and we continue to increase both the quantum
of marketing and the effectiveness of what is spent by the System
Fund on behalf of IHG owners. As IHG’s RevPAR and system size
continues to grow in the future, so too will System Fund capacity,
which in turn will drive further scale advantage and efficiencies,
enabling IHG’s ongoing investment in leading technology and
the wider enterprise for the benefit of hotels and
owners.
▪
Further enhancements to hotel owners’
commercial delivery. IHG is continuously building upon the
enterprise platform which already provides core benefits to our
hotel owners. By leveraging IHG’s growing scale and
capabilities, our enterprise is reducing costs for owners and
improving their performance and returns. Starting in the Americas,
where a large number of owners already select additional commercial
support from IHG beyond the core tech stack and enterprise
services, we are currently piloting enhanced commercial solutions
in 500 hotels. These new solutions provide even more advanced
support at an overall cost that is lower than current paid-for
revenue management services for approximately 75% of participating
owners. The new service combines IHG's established revenue
management services with expanded local sales programmes and
digital marketing support, using the latest technology, data and
insights. Owner feedback to date has been very positive, and we
expect to roll out the new service in 2027 to the remainder of the
2,000+ Americas hotels already benefitting from IHG’s
existing revenue management services, then extend it to the 1,500+
hotels not participating in the current service.
4.
Driving ancillary fee streams
IHG
actively looks to grow ancillary fee streams from other sources.
These are separate and in addition to fee streams paid by hotel
owners for use of IHG’s brands and for the services provided
to them as part of our enterprise platform. Ancillary streams
typically further enhance our overall fee margin, and provided
additional step changes in 2024 and 2025 as previously reported.
From 2026 onwards, continued growth in ancillary fees will
contribute to our overall target of 100-150bps annual improvement
in fee margin on average over the medium to long term.
▪
Sale of loyalty points to consumers. The
concluding step-change in arrangements delivered the expected
annual run-rate of this fee stream of over $50m in 2025, with these
fees fully recognised within IHG’s revenue and operating
profit from reportable segments. Further growth is expected in
future years, which will continue to enhance IHG’s growth
algorithm, driven by the ongoing strengthening and expansion of the
IHG One Rewards programme.
▪
US co-brand credit cards. IHG’s US
co-brand credit card business entered into new agreements with our
issuing and financial services partners in November 2024, which
delivered in 2025 the expected $80m+ annual run-rate of this fee
stream in terms of the portion recognised within IHG’s
revenue and operating profit from reportable segments. Progress to
date in 2026 continues to support this fee stream to growing to
$120m+ by 2028, with further growth anticipated in the years
beyond. The balance of fees that is recognised within System Fund
revenue is also expected to grow meaningfully over the term of the
new agreements. The number of US co-brand card members has
continued to grow in 2026, alongside growth in total card spend.
Card products will evolve over the course of the agreement with
Chase, and we continue to deepen our partnership across
travel-related services.
▪
Expanding with further co-brand agreements in
additional markets. The attraction of co-branded IHG One
Rewards cards is intrinsically linked to the overall appeal and
growth of the loyalty programme. They drive further membership and
loyalty to that programme, deepen guest relationships and deliver
more business to our hotels. Co-brand card holders stay even more
frequently and spend more in IHG hotels. Beyond the US, further
co-brand priority growth markets are targeted for expansion in the
coming years. In February, we signed a new UK co-branded IHG One
Rewards debit card agreement with Revolut, the UK's largest fintech
company, alongside Visa, with two card products launched on 30
June. In recent months we also announced a new agreement with
Sumitomo Mitsui Card Company, one of the largest credit card
issuers in Japan, along with Visa, with new co-brand card products
to launch in 2027 in this important market.
▪
Branded residential properties. A
further example of driving ancillary fees through the strength of
IHG’s brands is their ability to generate increased sales of
residential property, typically alongside a hotel development with
shared services and facilities. This industry segment has almost
tripled in number of branded residential developments worldwide
over the last decade and, based solely on the schemes already
signed, is forecast by Savills to approximately double in size
between 2025 and 2032. Hotel developers, particularly in the Luxury
category, are increasingly pursuing mixed-use developments that
incorporate a residential component, and our brands are also seeing
growing interest for use in residential-only developments. IHG
currently has 35 branded residential projects open or selling
across 19 countries, with additional opportunities in the pipeline.
In H1 2026, we earned further fees from sales of branded residences
at Six Senses Dubai Marina, building on the success of the
previously fully sold development at Six Senses The Palm, Dubai,
and from the sale of further units at locations such as
InterContinental Halong Bay. Signings in 2026 to date for future
branded residences developments included The Regent Ho Tram in
Vietnam, adding to our leading Luxury position in the country. Fee
growth is expected to be more substantial in 2027 and beyond, as
additional residential units under development are sold, and as we
continue to leverage the global reach and potential of IHG’s
Luxury & Lifestyle brands.
5.
Delivering increased dividends and return of surplus capital to our
shareholders
The
Board expects IHG’s business model to continue its strong
track record of generating substantial capacity to support our
investment plans that drive growth, fund a sustainably growing
ordinary dividend, and routinely return surplus capital to
shareholders.
▪
Consistent capital allocation approach.
IHG’s asset-light business model is highly cash-generative
through the cycle and enables us to invest in our brands and
strengthen our enterprise platform. We have a disciplined approach
to capital allocation which ensures that the business is
appropriately invested in, whilst looking to maintain an efficient
and conservative balance sheet. IHG’s perspectives on the
uses of cash generated by the business remain unchanged: ensuring
we invest in the business to optimise growth that will drive
long-term shareholder value creation, funding a sustainably growing
dividend, and then returning surplus capital to shareholders,
whilst targeting our leverage ratio within a range of 2.5-3.0x net
debt:adjusted EBITDA to maintain an investment grade credit
rating.
▪
Sustainably growing the ordinary
dividend. IHG
typically pays dividends weighted approximately one-third to the
interim and two-thirds to the final payment. The total dividend for
2025 was 184.5¢, an increase of +10% on the prior year. The
interim dividend for 2026 will be 64.5¢, representing a
further +10% increase which is an annual growth rate consistently
delivered for shareholders since 2022. The ex-dividend date for the
interim dividend is Thursday 20 August 2026 (Friday 21 August 2026
for ADRs) and the record date is Friday 21 August 2026. The interim
dividend will be paid on Thursday 1 October 2026, resulting in a
cash outflow of around $96m. Total dividends paid to shareholders
in 2026 will amount to approximately $285m.
▪
Returning surplus
capital. As
announced at our 2025 FY results, a $950m share buyback programme
is returning surplus capital to shareholders in 2026. This follows
the $900m programme in 2025, $800m in 2024, $750m in 2023 and the
$500m programme announced in 2022, which already reduced the
total number of voting rights in the Company in these years by
4.8%, 4.6%, 6.1% and 5.0%, respectively. The 2026 programme was 42%
complete with $397m cumulatively spent to 30 June, repurchasing
2.7m shares. The 2026 programme to that date had therefore reduced
the total number of voting rights by a further 1.8% to
149.0m.
▪
Total returns to shareholders. The $950m
share buyback programme, together with the anticipated sustainable
growth in ordinary dividend payments which IHG has increased at a
rate of 10% a year for each of the last four years, would result in
over $1.2bn being returned to shareholders in 2026. This is
equivalent to 5.8% of IHG’s $21.3bn market capitalisation at
the start of 2026, and 5.3% of IHG’s most recent $23.1bn
market capitalisation.
▪
Leverage maintained within 2.5-3.0x target
range. IHG’s net debt:adjusted EBITDA ratio was 2.5x
at 31 December 2025 and 2.6x at 30 June 2026. On a prospective
basis, given analyst consensus expectations for growth in EBITDA
and cash generation in 2026, together with the $950m share buyback
programme, leverage at the end of 2026 would be expected to remain
within our target range of 2.5-3.0x.
|
Summary of financial performance
|
INCOME
STATEMENT SUMMARY
|
|
6 months ended 30 June
|
|||
|
|
2026
|
2025
|
%
|
|
|
|
|
Re-presenteda
|
|
|
|
|
$m
|
$m
|
change
|
|
|
Revenueb
|
|
|
|
|
|
Americas
|
584
|
561
|
4.1
|
|
|
EMEAA
|
391
|
368
|
6.3
|
|
|
Greater
China
|
88
|
76
|
15.8
|
|
|
Central
|
192
|
170
|
12.9
|
|
|
|
_____
|
_____
|
_____
|
|
|
Revenue
from reportable segmentsc
|
1,255
|
1,175
|
6.8
|
|
|
|
|
|
|
|
|
System
Fund and reimbursable revenues
|
1,404
|
1,344
|
4.5
|
|
|
|
_____
|
_____
|
_____
|
|
|
Total
revenue
|
2,659
|
2,519
|
5.6
|
|
|
|
|
|
|
|
|
Operating profitb
|
|
|
|
|
|
Americas
|
442
|
415
|
6.5
|
|
|
EMEAA
|
141
|
128
|
10.2
|
|
|
Greater
China
|
55
|
44
|
25.0
|
|
|
Central
|
27
|
17
|
58.8
|
|
|
|
_____
|
_____
|
_____
|
|
|
Operating
profit from reportable segmentsc
|
665
|
604
|
10.1
|
|
|
Analysed as:
|
|
|
|
|
|
Fee business
|
640
|
590
|
8.5
|
|
|
Owned & leased
|
20
|
18
|
11.1
|
|
|
Insurance activities
|
5
|
(4)
|
NMe
|
|
|
|
|
|
|
|
|
System
Fund and reimbursable result
|
9
|
31
|
(71.0
|
)
|
|
|
_____
|
_____
|
_____
|
|
|
Operating
profit before exceptional items
|
674
|
635
|
6.1
|
|
|
Operating
exceptional items
|
(3)
|
(12)
|
(75.0
|
)
|
|
|
_____
|
_____
|
_____
|
|
|
Operating profit
|
671
|
623
|
7.7
|
|
|
|
|
|
|
|
|
Net
financial expenses
|
(86)
|
(66)
|
30.3
|
|
|
Analysed as:
|
|
|
|
|
|
Adjusted interest expensec
|
(106)
|
(91)
|
16.5
|
|
|
System Fund interest
|
20
|
25
|
(20.0)
|
|
|
|
|
|
|
|
|
Foreign
exchange (losses)/gains
|
(7)
|
79
|
NMe
|
|
|
Remeasurement
of contingent purchase consideration
|
–
|
(3)
|
NMe
|
|
|
|
_____
|
_____
|
_____
|
|
|
Profit before tax
|
578
|
633
|
(8.7)
|
|
|
|
|
|
|
|
|
Tax
|
(153)
|
(164)
|
(6.7
|
)
|
|
Analysed as:
|
|
|
|
|
|
Adjusted taxc
|
(147)
|
(134)
|
9.7
|
|
|
Tax attributable to System Fund
|
(6)
|
(4)
|
50.0
|
|
|
Tax on foreign exchange losses/gains
|
(1)
|
(8)
|
(87.5
|
)
|
|
Tax exceptional items
|
1
|
(18)
|
NMe
|
|
|
|
_____
|
_____
|
_____
|
|
|
Profit for the period
|
425
|
469
|
(9.4)
|
|
|
|
|
|
|
|
|
Adjusted
earningsd
|
412
|
379
|
8.7
|
|
|
|
|
|
|
|
|
Basic
weighted average number of ordinary shares (millions)
|
150.0
|
156.3
|
(4.0
|
)
|
|
|
_____
|
_____
|
_____
|
|
|
Earnings per ordinary share
|
|
|
|
|
|
Basic
|
283.3¢
|
300.1¢
|
(5.6
|
)
|
|
Adjustedc
|
274.7¢
|
242.5¢
|
13.3
|
|
|
|
|
|
|
|
|
Interim dividend per share
|
64.5¢
|
58.6¢
|
10.1
|
|
|
|
|
|
|
|
|
Average
US dollar to sterling exchange rate
|
$1: £0.74
|
$1:£0.77
|
(3.9)
|
|
a.
Re-presented to
present foreign exchange (losses)/gains on a separate line which was previously
presented within ‘Net financial
expenses’.
b.
Americas and EMEAA include revenue and operating profit before
exceptional items from both fee business and owned & leased
hotels. Greater China includes revenue and operating profit before
exceptional items from fee business.
c.
Definitions for non-GAAP measures can be found in the ‘Key
performance measures and non-GAAP measures’ section, along
with reconciliations of these measures to the most directly
comparable line items within the Interim Financial
Statements.
d.
Adjusted earnings as used within
adjusted earnings per share, a non-GAAP
measure.
e.
Percentage change
considered not meaningful, such as where a positive balance in the
latest period is comparable to a negative or zero balance in the
prior period.
Revenue
Global
RevPAR increased
year-on-year by 4.4% in the first quarter, 3.5% in the second
quarter and 4.1% in the first half, reflecting the diversity of our
global portfolio. Our other key driver of revenue, net system size,
increased by 5.0% year-on-year to 1,048,731
rooms.
Total revenue increased by $140m (5.6%) to $2,659m, including a
$60m increase in System Fund and reimbursable revenue. Revenue from
reportable segmentsa
increased by $80m (6.8%) to
$1,255m, driven by a combination of system and RevPAR growth.
Underlying revenuea
increased by $70m (6.0%) to
$1,238m, with underlying fee revenuea
increasing by $57m (6.3%)
to $958m. Owned & leased revenue increased by $15m (5.9%) to
$270m.
Operating profit and margin
Operating profit increased by $48m from $623m to $671m, including
$3m operating exceptional costs in relation to the global
efficiency programme, compared to operating exceptional items of
$12m recorded in the comparable period. The System Fund and
reimbursable result declined by $22m, to a profit of
$9m.
Operating profit from reportable segmentsa
increased by $61m (10.1%)
to $665m. Fee business operating profit increased by $50m (8.5%) to
$640m, driven by RevPAR and system growth. Owned & leased
operating profit improved from $18m to $20m. Underlying operating
profita
increased by $62m (10.4%)
to $659m.
Fee margina
increased by 1.2%pts to
65.9%, reflecting positive operating leverage.
The impact of the movement in average USD exchange rates for 2026
netted to a $6m benefit to operating profit from reportable
segmentsa,
compared to the same measure when calculated restating 2026 figures
at 2025 exchange rates.
If the average exchange rate during July 2026 had existed
throughout the first half of 2026, the 2026 operating profit from
reportable segmentsa
would have been $2m
lower.
System Fund and reimbursable result
The Group operates a System Fund to collect and administer
assessments from hotel owners for specified purposes of use
including marketing, reservations, certain hotel services and the
Group’s loyalty programme, IHG One Rewards. The System Fund
also benefits from certain proceeds from the sale of loyalty points
under third-party co-branding arrangements and the sale of points
directly to members and other third parties. The Fund is not
managed to generate a surplus or deficit for IHG over the longer
term, but is managed for the benefit of hotels in the IHG system
with the objective of driving revenues for the hotels in the
system.
The growth in the IHG One Rewards programme means that, although
assessments are received from hotels upfront when a member earns
points, more revenue is deferred each year than is recognised in
the System Fund. This can lead to accounting losses in the System
Fund each year as the deferred revenue balance grows which does not
necessarily reflect the Fund’s position and the Group’s
capacity to invest.
Reimbursable revenues represent reimbursements of expenses incurred
on behalf of managed and franchised properties and relate,
predominantly, to payroll costs at managed properties where IHG is
the employer. As IHG records reimbursable expenses based upon costs
incurred with no added mark up, this revenue and related expenses
have no impact on either operating profit or net
profit.
In the six months to 30 June 2026, System Fund and
reimbursable revenues increased $60m (4.5%) to $1,404m. This was
driven by the growth in System Fund revenue driven by the continued
increase in net system size together with RevPAR
growth.
The System Fund and reimbursable result declined from a $31m profit
to a $9m profit, primarily due to additional investments in
marketing and loyalty aligning to the Fund's objective to operate
broadly at breakeven over the longer term.
a.
Definitions for
non-GAAP measures can be found in the ‘Key performance
measures and non-GAAP measures’ section, along with
reconciliations of these measures to the most directly comparable
line items within the Interim Financial Statements.
Operating
exceptional items
Operating
exceptional items for the
six months to 30 June 2026 of $3m (2025: $12m) comprised costs
relating to ongoing delivery of the global efficiency programme.
Further information on operating exceptional items can be found in
note 5 to the Interim Financial Statements.
Net financial expenses
Net financial expenses increased to $86m from $66m. Adjusted
interesta,
which adds back interest attributable to the System Fund, increased
by $15m to an expense of $106m, largely driven by an $18m increase
in total interest costs on public bonds due to a rise in total
borrowings and average interest rates. Adjusted
interesta
increased by a lesser
amount due to a $5m decrease in System Fund
interest.
Foreign exchange gains and losses
Foreign exchange losses for the six months to 30 June 2026
were $7m (2025: gains of $79m). Foreign exchange gains and losses
are predominantly due to the Group's internal funding structure
whereby subsidiaries with a sterling functional currency hold
intra-group monetary assets and liabilities denominated in other
currencies, including US Dollars.
Remeasurement of contingent purchase consideration
Contingent purchase consideration arose on the acquisitions of
Regent and the Ruby brand. The net effect of remeasurements was nil
for the six months to 30 June 2026 (2025: $3m loss). The total
contingent purchase consideration liability at 30 June 2026 is
$59m (31 December 2025: $98m). During 2026, the Group
exercised an option to acquire a further 25% of the Regent
shareholding for $39m, of which $20m was paid in the first half of
2026. Further information can be found in note 12 to the Interim
Financial Statements.
Taxation
Adjusted taxa
has been calculated by
applying a blended effective tax rate of 26% (2025: 26%). This
represents the weighting of the annual tax rates of the
Group’s key territories using corporate income tax rates
substantively enacted at 30 June 2026 to provide the best
estimate for the full financial year. Further information on tax
can be found in note 6 to the Interim Financial
Statements.
Earnings per share
The Group’s basic earnings per ordinary share is 283.3¢
(2025: 300.1¢). Adjusted earnings per ordinary
sharea
increased by 32.2¢
(13.3%) to 274.7¢.
Dividends and shareholder returns
The Board is declaring an interim dividend of 64.5¢, an
increase of 10% on the 58.6¢ paid in 2025. The ex-dividend
date for ordinary shares is Thursday 20 August 2026 and for
American Depositary Receipts the ex-dividend date is Friday 21
August 2026. The record date (for both ordinary shares and American
Depositary Receipts) is Friday 21 August 2026. The corresponding
dividend amount in pence sterling per ordinary share will be
announced on Friday 11 September 2026, calculated based on the
average of the market exchange rates for the three working days
commencing 8 September 2026. The dividend will be paid on Thursday
1 October 2026, resulting in a cash outflow of around $96m. This
will result in total dividends paid to shareholders in 2026
amounting to approximately $285m.
Registered shareholders may elect to receive their dividend
payments in US Dollars (USD) instead of British Pounds (GBP).
Elections to receive dividend payments in USD can be made by
completing the Currency Form which is available from
www.shareview.info/products/directdividends. Alternatively, registered
shareholders can contact the Company’s Registrar, Equiniti,
by telephone on +44 (0) 371 384 2132 to request a Currency Form.
For shares held in CREST, an election for USD will be permitted
using the CREST dividend election process. CREST participants
should ensure a USD CREST Memorandum Account has been
enabled.
A Dividend Reinvestment Plan (“DRIP”) is provided by
Equiniti Financial Services Limited. The DRIP enables the
Company’s shareholders to elect to have their cash dividend
payments used to purchase the Company’s shares. More
information can be found at
www.shareview.info/products/drip. The cut-off date and time for the
receipt of USD payment elections and DRIP elections for the interim
dividend referred to above is 11 September 2026 at 5:00pm (UK
time).
In February 2026, the Board approved a $950m share buyback
programme to be completed in 2026. This follows the $900m programme
in 2025, the $800m programme announced in 2024, the $750m programme
announced in 2023 and the $500m programme in 2022, which already
reduced the total number of voting rights in the Company by
4.8%, 4.6%, 6.1% and 5.0%, respectively. In the six months to 30
June 2026, 2.7m shares were repurchased for $397m.
a.
Definitions for
non-GAAP measures can be found in the ‘Key performance
measures and non-GAAP measures’ section, along with
reconciliations of these measures to the most directly comparable
line items within the Interim Financial Statements.
|
Summary of cash flow, working capital, net debt and
liquidity
|
||||
|
Adjusted EBITDAa
reconciliation
|
6 months ended 30 June
|
|
||
|
|
2026
|
2025
|
|
|
|
|
$m
|
$m
|
|
|
|
Cash flow from operations
|
601
|
543
|
|
|
|
Cash
flows relating to operating exceptional items
|
7
|
4
|
|
|
|
Impairment
loss on financial assets
|
(11)
|
(14)
|
|
|
|
Other
non-cash adjustments to operating profit
|
(53)
|
(44)
|
|
|
|
System
Fund and reimbursable result
|
(9)
|
(31)
|
|
|
|
System
Fund depreciation and amortisation
|
(33)
|
(40)
|
|
|
|
Other
non-cash adjustments to System Fund result
|
(24)
|
(26)
|
|
|
|
Working
capital and other adjustments
|
121
|
158
|
|
|
|
Capital
expenditure: contract acquisition costs, net of
repayments
|
98
|
87
|
|
|
|
|
_____
|
_____
|
|
|
|
Adjusted EBITDAa
|
697
|
637
|
|
|
|
|
_____
|
_____
|
|
|
|
CASH FLOW SUMMARY
|
6 months ended 30 June
|
||
|
|
2026
|
2025
|
$m
|
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
Adjusted EBITDAa
|
697
|
637
|
60
|
|
|
|
|
|
|
Working
capital and other adjustments
|
(121)
|
(158)
|
|
|
(Payments)/repayments
related to investments supporting the Group’s insurance
activities
|
(3)
|
8
|
|
|
Impairment
loss on financial assets
|
11
|
14
|
|
|
Other
non-cash adjustments to operating profit
|
53
|
44
|
|
|
System
Fund and reimbursable result
|
9
|
31
|
|
|
Non-cash
adjustments to System Fund result
|
57
|
66
|
|
|
Capital
expenditure: key money contract acquisition costs, net of
repayments
|
(83)
|
(86)
|
|
|
Capital
expenditure: gross maintenance
|
(12)
|
(10)
|
|
|
Net
interest paid
|
(75)
|
(48)
|
|
|
Tax
paid
|
(165)
|
(183)
|
|
|
Principal
element of lease payments, net of finance lease
receipts
|
(3)
|
(13)
|
|
|
Purchase
of own shares by employee share trusts
|
(5)
|
–
|
|
|
|
_____
|
_____
|
_____
|
|
Adjusted free cash flowa
|
360
|
302
|
58
|
|
|
|
|
|
|
Cash
flows relating to exceptional items
|
(7)
|
(4)
|
|
|
Capital expenditure: gross recyclable investments
|
(42)
|
(9)
|
|
|
Capital
expenditure: gross System Fund capital investments
|
(21)
|
(19)
|
|
|
Purchase
of brands
|
–
|
(120)
|
|
|
Deferred
and contingent purchase consideration paid
|
(20)
|
–
|
|
|
Disposals and repayments, including proceeds from other financial
assets
|
2
|
–
|
|
|
Repurchase
of shares, including transaction costs
|
(375)
|
(425)
|
|
|
Dividends
paid to shareholders
|
(189)
|
(180)
|
|
|
Dividends
paid to non-controlling interest
|
(1)
|
–
|
|
|
Other
financing cash flows
|
–
|
6
|
|
|
|
_____
|
_____
|
_____
|
|
Net cash flow before other net debta
movements
|
(293)
|
(449)
|
156
|
|
|
|
|
|
|
Add
back principal element of lease repayments
|
5
|
15
|
|
|
Exchange
and other non-cash adjustments
|
(42)
|
(145)
|
|
|
|
_____
|
_____
|
_____
|
|
Increase in net debta
|
(330)
|
(579)
|
249
|
|
Net
debta at
beginning of the period
|
(3,333)
|
(2,782)
|
|
|
|
_____
|
_____
|
_____
|
|
Net debta
at end of the period
|
(3,663)
|
(3,361)
|
(302)
|
|
|
_____
|
_____
|
_____
|
a.
Definitions for
non-GAAP measures can be found in the ‘Key performance
measures and non-GAAP measures’ section, along with
reconciliations of these measures to the most directly comparable
line items within the Interim Financial Statements.
Cash
flow from operations
For
the six months ended
30 June 2026, cash flow from operations was $601m, an increase
of $58m on the comparable period. This was predominantly due to the
higher operating profit from reportable segmentsa.
Cash flow from operations is the principal source of cash used to
fund interest and tax payments, capital expenditure, ordinary
dividend payments and additional returns of capital to
shareholders.
Adjusted free cash flowa
Adjusted free cash flowa
was an inflow of $360m, an
increase of $58m on the prior year. Adjusted
EBITDAa
increased by $60m due to
the higher operating profit from reportable
segmentsa.
Key money contract acquisition costs net of repayments reduced by
$3m, and tax payments were $18m lower due to phasing of payments in
the US. These movements were partly offset by a $22m reduction in
the System Fund and reimbursable result, which was primarily due to
additional investments in marketing and loyalty aligning to the
Fund's objective to operate broadly at breakeven over the longer
term, and a $27m increase in net interest paid reflecting the
increase in average net debt. Working capital and other adjustments
of $121m includes $85m of cash inflow related to deferred revenue,
driven primarily by $68m related to the loyalty
programme.
Net and gross capital expenditurea
Net capital expenditurea
was $123m (2025: $85m) and
gross capital expenditurea
was $158m (2025: $124m).
Gross capital expenditurea
comprised: $83m key money
contract acquisition costs, $12m maintenance, $42m gross recyclable
investments and $21m System Fund capital investments. Net capital
expenditurea
includes offsets from other
disposals and repayments of $2m, and $33m System Fund depreciation
and amortisation.
Net debta
Net debta
increased by $330m from
$3,333m at 31 December 2025 to $3,663m at 30 June 2026.
During the period there were $564m of payments related to ordinary
dividends and the share buyback programmes, including transaction
costs. The change in net debta
includes positive net
foreign exchange impacts of $11m and $53m adverse impacts for other
non-cash adjustments.
Sources of liquidity
As at 30 June 2026, the Group had total liquidity of $2,298m
(31 December 2025: $2,599m), comprising $1,500m of undrawn
bank facilities and $798m of cash and cash equivalents (net of
overdrafts and restricted cash). The decrease in total liquidity
from 31 December 2025 of $301m is primarily due to net cash
outflows of $293m.
The Group currently has $4,144m of sterling and euro bonds
outstanding. The bonds mature in August 2026 (£350m), May 2027
(€500m), October 2028 (£400m), November 2029
(€600m), September 2030 (€850m) and September 2031
(€750m). There are currency swaps in place on the euro bonds,
fixing the May 2027 bond at £436m, the November 2029 bond at
$657m, the September 2030 bond at $990m and the September 2031 bond
at $834m. The Group currently has senior unsecured long-term credit
ratings of BBB from S&P and Baa2 from
Moody’s.
The Group is further financed by a $1,500m syndicated bank
revolving credit facility (RCF) which matures in December 2030.
There are two one-year extension options that are at the lenders'
discretion. There are no financial covenants in the RCF. The RCF
was undrawn at 30 June 2026.
It is management’s opinion that the current working capital
levels and available facilities are sufficient for the
Group’s present liquidity requirements.
a.
Definitions for
non-GAAP measures can be found in the ‘Key performance
measures and non-GAAP measures’ section, along with
reconciliations of these measures to the most directly comparable
line items within the Interim Financial Statements.
|
Additional revenue, global system size and pipeline
analysis
|
Disaggregation of total gross revenue in IHG’s
system
Total
gross revenuea provides a measure
of the overall strength of the Group’s brands. It comprises
total rooms revenue from franchised hotels and total hotel revenue
from managed, exclusive partner and owned & leased hotels and
excludes revenue from the System Fund and reimbursement of costs.
Other than owned & leased hotels, total gross revenue is not
revenue attributable to IHG as it is derived from hotels owned by
third parties.
|
|
6 months ended 30 June
|
||
|
|
2026
|
2025
|
%
|
|
|
$bn
|
$bn
|
Changeb
|
|
Analysed by brand
|
|
|
|
|
InterContinental
|
2.8
|
2.6
|
5.7
|
|
Kimpton
|
0.9
|
0.7
|
24.0
|
|
Hotel
Indigo
|
0.6
|
0.5
|
17.2
|
|
Crowne
Plaza
|
1.8
|
1.8
|
3.1
|
|
Holiday
Inn Express
|
4.9
|
4.7
|
5.3
|
|
Holiday
Inn
|
3.0
|
2.9
|
3.8
|
|
Staybridge
Suites
|
0.7
|
0.7
|
6.7
|
|
Candlewood
Suites
|
0.5
|
0.5
|
11.5
|
|
Other
|
3.0
|
2.3
|
25.2
|
|
|
_____
|
_____
|
_____
|
|
Total
|
18.2
|
16.7
|
9.1
|
|
|
_____
|
_____
|
_____
|
|
Analysed by ownership type
|
|
|
|
|
Franchisedc
(revenue not attributable to IHG)
|
11.7
|
10.5
|
10.9
|
|
Managed
(revenue not attributable to IHG)
|
6.2
|
5.9
|
6.0
|
|
Owned
& leased
(revenue recognised in
Group income statement)
|
0.3
|
0.3
|
5.9
|
|
|
_____
|
_____
|
_____
|
|
Total
|
18.2
|
16.7
|
9.1
|
|
|
_____
|
_____
|
_____
|
Total
gross revenue in IHG’s system increased by 9.1% (7.1% increase at constant
currency) to $18.2bn, driven by the combination of RevPAR growth
and the increase in the number of hotels in our
system.
a.
Definitions for
total gross revenue can be found in the ‘Key performance
measures and non-GAAP measures’ section to accompany the
above reconciliation to the Interim Financial
Statements
b.
Year-on-year
percentage movement calculated from unrounded source figures to
provide more precise growth indicators for these figures which are
presented in billions of dollars.
c.
Includes exclusive
partner hotels.
RevPARa
movement summary at constant exchange rates (CER)
|
|
Half Year 2026 vs 2025
|
Q2 2026 vs 2025
|
||||
|
|
RevPAR
|
ADR
|
Occupancy
|
RevPAR
|
ADR
|
Occupancy
|
|
Global
|
4.1%
|
2.5%
|
1.0%pts
|
3.5%
|
3.0%
|
0.3%pts
|
|
Americas
|
4.8%
|
3.3%
|
1.0%pts
|
5.4%
|
4.2%
|
0.8%pts
|
|
EMEAA
|
3.0%
|
1.8%
|
0.8%pts
|
0.6%
|
1.6%
|
(0.6)%pts
|
|
Greater China
|
3.1%
|
1.0%
|
1.1%pts
|
0.8%
|
0.2%
|
0.4%pts
|
RevPARa
movement at CER vs actual exchange rates (AER)
|
|
Half Year 2026 vs 2025
|
Q2 2026 vs 2025
|
||||
|
|
CER
(as above)
|
AER
|
Difference
|
CER
(as above)
|
AER
|
Difference
|
|
Global
|
4.1%
|
5.8%
|
1.7%pts
|
3.5%
|
4.4%
|
0.9%pts
|
|
Americas
|
4.8%
|
5.4%
|
0.6%pts
|
5.4%
|
5.8%
|
0.4%pts
|
|
EMEAA
|
3.0%
|
5.8%
|
2.8%pts
|
0.6%
|
1.3%
|
0.7%pts
|
|
Greater China
|
3.1%
|
8.2%
|
5.1%pts
|
0.8%
|
6.2%
|
5.4%pts
|
|
Global RevPARa movement by
brand
|
6 months ended
30 June 2026
|
|
|
|
|
Total comparable estate by brand
|
|
|
InterContinental
|
5.3%
|
|
Kimpton
|
14.3%
|
|
Hotel
Indigo
|
6.0%
|
|
voco
|
3.4%
|
|
Crowne
Plaza
|
3.9%
|
|
Holiday
Inn Express
|
3.0%
|
|
Holiday
Inn
|
2.0%
|
|
Staybridge
Suites
|
2.8%
|
|
Candlewood
Suites
|
4.4%
|
|
All
brands
|
4.1%
|
|
|
|
|
Fee business: all brands
|
4.0%
|
|
|
|
|
Owned & leased: all brands
|
6.2%
|
a.
RevPAR (revenue per
available room), ADR (average daily rate) and occupancy are on a
comparable basis, based on comparability as at 30 June 2026
and include hotels that have traded in all months in both the
current and the prior year. The principal exclusions in deriving
these measures are new openings, properties under major
refurbishments and removals. See ‘Key performance measures
and non-GAAP measures’ section for further information on the
definition of RevPAR.
|
|
Hotels
|
|
Rooms
|
||
|
Global hotel and room count
|
|
Change
over
|
|
|
Change
over
|
|
|
2026
|
2025
|
|
2026
|
2025
|
|
|
30 June
|
31 December
|
|
30 June
|
31 December
|
|
Analysed
by brand
|
|
|
|
|
|
|
Six
Senses
|
27
|
–
|
|
2,120
|
53
|
|
Regent
|
11
|
–
|
|
3,212
|
–
|
|
InterContinental
|
242
|
–
|
|
76,833
|
(194)
|
|
Vignette
Collection
|
38
|
7
|
|
9,305
|
2,049
|
|
Kimpton
|
90
|
5
|
|
17,563
|
1,355
|
|
Hotel
Indigo
|
198
|
7
|
|
26,726
|
1,050
|
|
voco
|
148
|
24
|
|
30,219
|
4,992
|
|
Ruby
|
20
|
3
|
|
3,582
|
630
|
|
HUALUXE
|
28
|
4
|
|
7,430
|
1,004
|
|
Crowne
Plaza
|
433
|
9
|
|
115,179
|
1,292
|
|
EVEN
Hotels
|
48
|
2
|
|
7,258
|
362
|
|
Holiday
Inn Express
|
3,335
|
43
|
|
356,590
|
5,190
|
|
Holiday
Inn
|
1,259
|
12
|
|
228,215
|
2,289
|
|
Garner
|
112
|
23
|
|
10,693
|
2,192
|
|
avid
hotels
|
87
|
–
|
|
7,677
|
–
|
|
Atwell
Suites
|
11
|
2
|
|
1,170
|
242
|
|
Staybridge
Suites
|
355
|
5
|
|
38,906
|
619
|
|
Holiday
Inn Club Vacations
|
24
|
(2)
|
|
8,415
|
(723)
|
|
Candlewood
Suites
|
433
|
10
|
|
38,359
|
807
|
|
Iberostar
Beachfront Resorts
|
65
|
3
|
|
22,138
|
1,137
|
|
Other
|
145
|
(11)
|
|
37,141
|
(1,792)
|
|
|
_____
|
_____
|
|
_____
|
_____
|
|
Total
|
7,109
|
146
|
|
1,048,731
|
22,554
|
|
|
_____
|
_____
|
|
_____
|
_____
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
Franchiseda
|
6,001
|
115
|
|
764,415
|
16,237
|
|
Managed
|
1,091
|
31
|
|
280,125
|
6,317
|
|
Owned
& leased
|
17
|
–
|
|
4,191
|
–
|
|
|
_____
|
_____
|
|
_____
|
_____
|
|
Total
|
7,109
|
146
|
|
1,048,731
|
22,554
|
|
|
_____
|
_____
|
|
_____
|
_____
|
a.
Includes exclusive
partner hotels.
|
|
Hotels
|
|
Rooms
|
||
|
Global Pipeline
|
|
Change
over
|
|
|
Change
over
|
|
|
2026
|
2025
|
|
2026
|
2025
|
|
|
30 June
|
31 December
|
|
30 June
|
31 December
|
|
Analysed
by brand
|
|
|
|
|
|
|
Six
Senses
|
33
|
(6)
|
|
3,151
|
205
|
|
Regent
|
14
|
2
|
|
2,599
|
389
|
|
InterContinental
|
103
|
(1)
|
|
26,282
|
(452)
|
|
Vignette
Collection
|
46
|
1
|
|
6,322
|
(765)
|
|
Kimpton
|
69
|
–
|
|
13,331
|
43
|
|
Hotel
Indigo
|
134
|
3
|
|
21,526
|
641
|
|
Noted
Collection
|
3
|
3
|
|
317
|
317
|
|
voco
|
122
|
14
|
|
22,488
|
1,035
|
|
Ruby
|
22
|
3
|
|
4,518
|
729
|
|
HUALUXE
|
19
|
(4)
|
|
4,977
|
(1,063)
|
|
Crowne
Plaza
|
151
|
(3)
|
|
37,256
|
(976)
|
|
EVEN
Hotels
|
24
|
(2)
|
|
4,602
|
(259)
|
|
Holiday
Inn Express
|
664
|
9
|
|
82,743
|
1,385
|
|
Holiday
Inn
|
318
|
23
|
|
56,645
|
3,086
|
|
Garner
|
110
|
33
|
|
9,770
|
2,817
|
|
avid
hotels
|
118
|
2
|
|
8,835
|
159
|
|
Atwell
Suites
|
61
|
5
|
|
6,469
|
647
|
|
Staybridge
Suites
|
152
|
2
|
|
16,387
|
(231)
|
|
Candlewood
Suites
|
204
|
10
|
|
15,241
|
776
|
|
Iberostar
Beachfront Resorts
|
5
|
–
|
|
2,304
|
(111)
|
|
Other
|
13
|
(1)
|
|
1,928
|
(207)
|
|
|
_____
|
_____
|
|
_______
|
______
|
|
Total
|
2,385
|
93
|
|
347,691
|
8,165
|
|
|
_____
|
_____
|
|
_______
|
______
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
Franchiseda
|
1,724
|
89
|
|
207,985
|
9,362
|
|
Managed
|
661
|
4
|
|
139,706
|
(1,197)
|
|
|
_____
|
_____
|
|
_______
|
______
|
|
Total
|
2,385
|
93
|
|
347,691
|
8,165
|
|
|
_____
|
_____
|
|
_______
|
______
|
a.
Includes exclusive
partner hotels.
|
Regional performance reviews, system size and pipeline
analysis
|
||||
|
|
|
|
|
|
|
AMERICAS
|
|
|
|
|
|
|
6 months ended 30 June
|
|
||
|
Americas results
|
|
|
|
|
|
|
2026
|
2025
|
%
|
|
|
|
$m
|
$m
|
change
|
|
|
Revenue from the reportable segmenta
|
|
|
|
|
|
Fee
business
|
493
|
475
|
3.8
|
|
|
Owned
& leased
|
91
|
86
|
5.8
|
|
|
|
_____
|
_____
|
_____
|
|
|
|
584
|
561
|
4.1
|
|
|
|
_____
|
_____
|
_____
|
|
|
Operating profit from the reportable segmenta
|
|
|
|
|
|
Fee
business
|
415
|
394
|
5.3
|
|
|
Owned
& leased
|
27
|
21
|
28.6
|
|
|
|
_____
|
_____
|
_____
|
|
|
|
442
|
415
|
6.5
|
|
|
Operating
exceptional items
|
(1)
|
(1)
|
–
|
|
|
|
_____
|
_____
|
_____
|
|
|
Operating
profit
|
441
|
414
|
6.5
|
|
|
|
_____
|
_____
|
_____
|
|
|
Americas RevPARa movement by
brand
|
6 months ended
30 June 2026
|
|
|
|
|
Total comparable estate by brand
|
|
|
InterContinental
|
10.2%
|
|
Kimpton
|
15.0%
|
|
Hotel
Indigo
|
6.9%
|
|
Crowne
Plaza
|
8.1%
|
|
EVEN
Hotels
|
3.9%
|
|
Holiday
Inn Express
|
3.5%
|
|
Holiday
Inn
|
3.1%
|
|
avid
hotels
|
2.7%
|
|
Atwell
Suites
|
22.7%
|
|
Staybridge
Suites
|
3.4%
|
|
Candlewood
Suites
|
4.0%
|
|
All
brands
|
4.8%
|
|
|
|
|
Fee business: all brands
|
4.7%
|
|
|
|
|
Owned & leased: all brands
|
9.3%
|
H1
RevPAR grew +4.8% (Q1
+3.6%, Q2 +5.4%), with rate +3.3% and occupancy +1.0%pts. US RevPAR
grew by +4.5% in H1, with growth of +3.4% in Q1 accelerating to
+5.2% in Q2. This uptick reflected supportive trading conditions
across all demand drivers as a result of a stronger US economy, as
well as comparatives that became easier in Q2. From mid-June, there
was also the benefit of strong growth in the FIFA World Cup match
locations, which is estimated to have added approximately 1.0%pts
to the Americas region RevPAR growth for Q2; there was some further
benefit in July, which is expected to benefit Q3 to a lesser
degree. It is estimated that the event will contribute
approximately 0.4%pts to Americas RevPAR growth for the full year
2026. Rooms revenue for the region on a comparable hotel basis in
H1 was strongest for Groups bookings which were up +10% YOY, with
Leisure +4% and Business +3%. There was also RevPAR growth in every
brand both in Q2 and H1 overall.
Revenue from the reportable segmenta
increased by $23m (+4.1%)
to $584m. Operating profit increased by $27m to $441m, including a
$1m exceptional cost in relation to the global efficiency programme
(further information on exceptional items can be found in note 5 to
the Interim Financial Statements). Operating profit from the
reportable segmenta
increased by $27m to
$442m.
Fee business revenue increased by $18m (+3.8%) to $493m, driven by
fee business RevPAR growth (which is on a comparable hotels and
constant currency basis) of +4.7%. There was the non-repeat of a
$7m liquidated damages payment received in 2025. There were $7m of
incentive management fees earned (2025: $7m). Fee business
operating profit increased by $21m (+5.3%) to $415m, supported by
system growth and cost efficiencies. This led to fee
margina
growing +1.5%pts to 84.2%
compared to 82.7% in 2025.
Owned & leased revenue increased by $5m (+5.8%) to $91m, with
RevPAR up +9.3%, reflecting the specific trading environments
related to this small portfolio of just four hotels (only three of
which were comparable for RevPAR). Owned & leased operating
profit increased by $6m (+28.6%) to $27m.
a.
Definitions for
non-GAAP measures can be found in the ‘Key performance
measures and non-GAAP measures’ section, along with
reconciliations of these measures to the most directly comparable
line items within the Interim Financial Statements.
b.
Percentage change
considered not meaningful, such as where a positive balance in the
latest period is comparable to a negative or zero balance in the
prior period.
|
|
Hotels
|
|
Rooms
|
||
|
Americas hotel and room count
|
|
Change
over
|
|
|
Change
over
|
|
|
2026
|
2025
|
|
2026
|
2025
|
|
|
30 June
|
31 December
|
|
30 June
|
31 December
|
|
Analysed
by brand
|
|
|
|
|
|
|
Six
Senses
|
2
|
–
|
|
81
|
–
|
|
Regent
|
1
|
–
|
|
167
|
–
|
|
InterContinental
|
48
|
–
|
|
17,055
|
–
|
|
Vignette
Collection
|
3
|
–
|
|
805
|
–
|
|
Kimpton
|
64
|
2
|
|
12,145
|
856
|
|
Hotel
Indigo
|
84
|
2
|
|
11,188
|
244
|
|
voco
|
33
|
5
|
|
3,920
|
927
|
|
Crowne
Plaza
|
99
|
(2)
|
|
24,414
|
(606)
|
|
EVEN
Hotels
|
26
|
(1)
|
|
3,494
|
(92)
|
|
Holiday
Inn Express
|
2,554
|
12
|
|
233,828
|
1,311
|
|
Holiday
Inn
|
649
|
(12)
|
|
103,864
|
(2,317)
|
|
Garner
|
50
|
17
|
|
4,292
|
1,605
|
|
avid
hotels
|
87
|
–
|
|
7,677
|
–
|
|
Atwell
Suites
|
9
|
1
|
|
828
|
74
|
|
Staybridge
Suites
|
332
|
5
|
|
35,093
|
619
|
|
Holiday
Inn Club Vacations
|
24
|
(2)
|
|
8,415
|
(723)
|
|
Candlewood
Suites
|
427
|
10
|
|
37,728
|
807
|
|
Iberostar
Beachfront Resorts
|
27
|
1
|
|
9,886
|
443
|
|
Other
|
116
|
(6)
|
|
16,540
|
(922)
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Total
|
4,635
|
32
|
|
531,420
|
2,226
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
Franchiseda
|
4,461
|
29
|
|
495,377
|
1,988
|
|
Managed
|
170
|
3
|
|
34,706
|
238
|
|
Owned
& leased
|
4
|
–
|
|
1,337
|
–
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Total
|
4,635
|
32
|
|
531,420
|
2,226
|
|
|
_____
|
____
|
|
_______
|
______
|
a.
Includes exclusive
partner hotels.
|
|
Hotels
|
|
Rooms
|
||
|
Americas Pipeline
|
|
Change
over
|
|
|
Change
over
|
|
|
2026
|
2025
|
|
2026
|
2025
|
|
|
30 June
|
31 December
|
|
30 June
|
31 December
|
|
Analysed
by brand
|
|
|
|
|
|
|
Six
Senses
|
8
|
(1)
|
|
784
|
135
|
|
InterContinental
|
9
|
–
|
|
2,199
|
(30)
|
|
Vignette
Collection
|
4
|
–
|
|
282
|
–
|
|
Kimpton
|
28
|
(2)
|
|
5,092
|
(430)
|
|
Hotel
Indigo
|
23
|
(1)
|
|
2,996
|
(75)
|
|
voco
|
27
|
–
|
|
3,158
|
(381)
|
|
Ruby
|
2
|
2
|
|
599
|
599
|
|
Crowne
Plaza
|
4
|
(2)
|
|
758
|
(369)
|
|
EVEN
Hotels
|
3
|
(1)
|
|
363
|
(120)
|
|
Holiday
Inn Express
|
345
|
9
|
|
32,410
|
932
|
|
Holiday
Inn
|
74
|
9
|
|
8,768
|
1,024
|
|
Garner
|
58
|
8
|
|
4,520
|
375
|
|
avid
hotels
|
118
|
2
|
|
8,835
|
159
|
|
Atwell
Suites
|
52
|
2
|
|
5,129
|
161
|
|
Staybridge
Suites
|
138
|
3
|
|
13,910
|
(97)
|
|
Candlewood
Suites
|
194
|
10
|
|
13,951
|
776
|
|
Iberostar
Beachfront Resorts
|
3
|
(1)
|
|
1,700
|
(444)
|
|
Other
|
13
|
(1)
|
|
1,928
|
(207)
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Total
|
1,103
|
36
|
|
107,382
|
2,008
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
Franchiseda
|
1,066
|
43
|
|
101,337
|
2,739
|
|
Managed
|
37
|
(7)
|
|
6,045
|
(731)
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Total
|
1,103
|
36
|
|
107,382
|
2,008
|
|
|
_____
|
____
|
|
_______
|
______
|
Gross
system growth was +3.3% YOY, with the opening of 8.0k rooms (68
hotels) in the Americas region during the first half of the year,
of which 4.6k rooms (44 hotels) opened in Q2. Openings in the half
included 25 hotels across the Holiday Inn Brand Family and a
further 17 properties across the Candlewood Suites and Staybridge
Suites brands, the latter including a dual-branded opening with an
EVEN hotel at Orlando adjacent to the Universal Studios theme park.
The conversion-led Garner brand added 17 hotels taking the open
estate to 50, with a further 58 in its pipeline as it continues to
rapidly develop in the less than three years since becoming
franchise-ready. The conversion-led voco brand added five more
properties, including Times Square Broadway, taking its open estate
to 33, with 27 more in its pipeline. Openings within our Luxury
& Lifestyle brands included four Kimpton properties – Era
Midtown and Ashbel in New York, together with Pacific Grove
California and Kimpton El Castelar Polanco in Mexico City. The
latter was one of seven openings in Mexico taking the number of
open hotels to 190, whilst six openings took Canada through the 200
hotels milestone. Conversions accounted for 42% of all room
openings in the half.
Net system size grew +1.8% YOY after removals of 5.8k rooms (36
hotels) in the half, with the removal rate being 1.6% over the last
12 months.
There were 12.5k rooms (131 hotels) signed during the first half of
the year, including 6.6k rooms (66 hotels) during Q2. Strong
development activity continued for our Essentials and Suites brands
– there were 54 signings across the Holiday Inn Brand Family
and 38 across Candlewood, Staybridge and Atwell. Ongoing demand for
conversions also saw 22 signings for Garner and four for voco, the
latter including a debut for the brand in Hawaii. The first Ruby
signings were achieved for properties in Chicago and New York, and
within our Luxury & Lifestyle brands there were signings
to further expand the Hotel Indigo brand within Mexico and to debut
in Costa Rica.
The
pipeline stands at 107.4k rooms (1,103 hotels), which represents
20% of the current system size in the region.
a.
Includes exclusive
partner hotels.
|
EMEAA
|
|
|
|
|
|
6 months ended 30 June
|
||
|
EMEAA results
|
|
|
|
|
|
2026
|
2025
|
%
|
|
|
$m
|
$m
|
change
|
|
Revenue from the reportable segmenta
|
|
|
|
|
Fee
business
|
212
|
199
|
6.5
|
|
Owned
& leased
|
179
|
169
|
5.9
|
|
|
_____
|
_____
|
_____
|
|
|
391
|
368
|
6.3
|
|
|
_____
|
_____
|
_____
|
|
Operating profit from the reportable segmenta
|
|
|
|
|
Fee
business
|
148
|
131
|
13.0
|
|
Owned
& leased
|
(7)
|
(3)
|
133.3
|
|
|
_____
|
_____
|
_____
|
|
|
141
|
128
|
10.2
|
|
Operating
exceptional items
|
(1)
|
(10)
|
(90.0)
|
|
|
_____
|
_____
|
_____
|
|
Operating
profit
|
140
|
118
|
18.6
|
|
|
_____
|
_____
|
_____
|
|
EMEAA RevPARa movement by
brand
|
6 months ended
30 June 2026
|
||
|
|
|
||
|
Total comparable estate by brand
|
|
||
|
Six
Senses
|
2.4%
|
||
|
InterContinental
|
3.8%
|
||
|
Hotel
Indigo
|
3.8%
|
||
|
voco
|
2.1%
|
||
|
Crowne
Plaza
|
2.7%
|
||
|
Holiday
Inn Express
|
2.4%
|
||
|
Holiday
Inn
|
1.1%
|
||
|
Staybridge
Suites
|
(4.8)%
|
||
|
All
brands
|
3.0%
|
||
|
|
|
||
|
Fee business: all brands
|
3.0%
|
||
|
|
|
||
|
Owned & leased: all brands
|
4.3%
|
||
H1
RevPAR grew +3.0%, with
rate +1.8% and occupancy +0.8%pts. Strong RevPAR growth of +5.6% in
Q1 was followed by +0.6% in Q2, reflecting the impact of the
conflict in the Middle East. This sub-region, which represents 19%
of EMEAA’s system size but just 5% of IHG globally, declined
-2% in Q1 then -19% in Q2. The rest of the EMEAA region experienced
RevPAR growth of +7% in Q1 and +4% growth in Q2. The growth in Q2
included +3.1% in the UK, +2.3% in Continental Europe and +6.0% in
East Asia & Pacific. Rooms revenue for the overall region on a
comparable hotel basis in H1 was strongest for Groups bookings
which were up +4% YOY, with Business up +2% and Leisure up
+1%.
Revenue from the reportable segmenta
increased by $23m (+6.3%)
to $391m. Operating profit increased by $22m to $140m, including a
$1m exceptional cost in relation to the global efficiency programme
(further information on exceptional items can be found in note 5 to
the Interim Financial Statements). Operating profit from the
reportable segmenta
increased by $13m to
$141m.
Fee business revenue increased by $13m (+6.5%) to $212m, driven by
RevPAR growth (which is on a comparable hotels and constant
currency basis) and incremental fees added from net system growth.
Incentive management fees were modestly lower for the region
overall at $60m (2025: $62m) with the reduction in the Middle East
largely offset by growth elsewhere. Fee business operating profit
increased by $17m (+13.0%) to $148m and fee
margina
increased by +4.0%pts to
69.8% compared to 65.8% in 2025, with positive operating leverage
driven by the trading performance, system growth together with the
ramp-up effect of previously added hotels, and cost
efficiencies.
Owned & leased revenue increased by $10m (+5.9%) to $179m, with
RevPAR on a comparable hotels and constant currency basis up +4.3%.
Additional revenue from a leased hotel in Germany which opened in
2025 broadly offset the revenue reduction from the temporary
closure of a fire-damaged hotel in Scotland. Reflecting the trading
conditions, cost bases and variable rent structures of this largely
urban-centred portfolio of 13 hotels, an operating loss of $7m was
recorded (2025: $3m loss), which includes the impact of a $5m
insurance-related expense on the damaged hotel.
a.
Definitions for non-GAAP measures can be found in the ‘Key
performance measures and non-GAAP measures’ section, along
with reconciliations of these measures to the most directly
comparable line items within the Interim Financial
Statements.
|
|
Hotels
|
|
Rooms
|
||
|
EMEAA hotel and room count
|
|
Change over
|
|
|
Change over
|
|
|
2026
|
2025
|
|
2026
|
2025
|
|
|
30 June
|
31 December
|
|
30 June
|
31 December
|
|
Analysed
by brand
|
|
|
|
|
|
|
Six
Senses
|
24
|
–
|
|
1,909
|
53
|
|
Regent
|
4
|
–
|
|
991
|
–
|
|
InterContinental
|
128
|
–
|
|
35,285
|
(56)
|
|
Vignette
Collection
|
24
|
3
|
|
5,606
|
940
|
|
Kimpton
|
20
|
2
|
|
3,955
|
270
|
|
Hotel
Indigo
|
76
|
2
|
|
9,318
|
281
|
|
voco
|
79
|
11
|
|
18,732
|
1,870
|
|
Ruby
|
20
|
3
|
|
3,582
|
630
|
|
Crowne
Plaza
|
193
|
8
|
|
44,916
|
1,120
|
|
Holiday
Inn Express
|
367
|
4
|
|
53,853
|
252
|
|
Holiday
Inn
|
429
|
3
|
|
78,287
|
190
|
|
Garner
|
61
|
5
|
|
6,295
|
481
|
|
Staybridge
Suites
|
23
|
–
|
|
3,813
|
–
|
|
Candlewood
Suites
|
6
|
–
|
|
631
|
–
|
|
Iberostar
Beachfront Resorts
|
38
|
2
|
|
12,252
|
694
|
|
Other
|
25
|
(4)
|
|
14,400
|
(502)
|
|
|
_____
|
____
|
|
_______
|
______
|
|
All Brands
|
1,517
|
39
|
|
293,825
|
6,223
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
Franchiseda
|
1,054
|
29
|
|
174,295
|
4,246
|
|
Managed
|
450
|
10
|
|
116,676
|
1,977
|
|
Owned
& leased
|
13
|
–
|
|
2,854
|
–
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Total
|
1,517
|
39
|
|
293,825
|
6,223
|
|
|
_____
|
____
|
|
_______
|
______
|
a.
Includes exclusive
partner hotels.
|
|
Hotels
|
|
Rooms
|
||
|
EMEAA Pipeline
|
|
Change over
|
|
|
Change over
|
|
|
2026
|
2025
|
|
2026
|
2025
|
|
|
30 June
|
31 December
|
|
30 June
|
31 December
|
|
Analysed
by brand
|
|
|
|
|
|
|
Six
Senses
|
23
|
(6)
|
|
2,220
|
(5)
|
|
Regent
|
11
|
1
|
|
1,903
|
220
|
|
InterContinental
|
62
|
(2)
|
|
15,490
|
(204)
|
|
Vignette
Collection
|
36
|
4
|
|
4,477
|
(17)
|
|
Kimpton
|
21
|
–
|
|
3,632
|
82
|
|
Hotel
Indigo
|
58
|
4
|
|
10,095
|
910
|
|
Noted
Collection
|
3
|
3
|
|
317
|
317
|
|
voco
|
67
|
8
|
|
13,536
|
1,073
|
|
Ruby
|
20
|
1
|
|
3,919
|
130
|
|
Crowne
Plaza
|
70
|
(3)
|
|
16,148
|
(1,054)
|
|
EVEN
Hotels
|
2
|
–
|
|
555
|
–
|
|
Holiday
Inn Express
|
106
|
6
|
|
17,322
|
1,623
|
|
Holiday
Inn
|
138
|
11
|
|
25,649
|
2,302
|
|
Garner
|
48
|
21
|
|
4,836
|
2,028
|
|
Staybridge
Suites
|
14
|
(1)
|
|
2,477
|
(134)
|
|
Candlewood
Suites
|
10
|
–
|
|
1,290
|
–
|
|
Iberostar
Beachfront Resorts
|
2
|
1
|
|
604
|
333
|
|
|
____
|
____
|
|
______
|
______
|
|
All Brands
|
691
|
48
|
|
124,470
|
7,604
|
|
|
____
|
____
|
|
______
|
______
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
Franchiseda
|
322
|
33
|
|
47,144
|
4,414
|
|
Managed
|
369
|
15
|
|
77,326
|
3,190
|
|
|
____
|
____
|
|
______
|
______
|
|
Total
|
691
|
48
|
|
124,470
|
7,604
|
|
|
____
|
____
|
|
______
|
______
|
Gross
system growth was +7.4% YOY
with the opening of 8.2k rooms (50 hotels) in the EMEAA region
during the first half of the year, of which 4.4k rooms (28 hotels)
opened in Q2. Openings in the first half of the year included three
further Ruby properties to now reach 20 open across the region.
There were 13 openings across Holiday Inn and Holiday Inn Express,
and a particularly strong period of openings for voco and Crowne
Plaza, at 11 and 9, respectively. There were nine openings across
our Luxury & Lifestyle brands, including Six Senses London,
InterContinental Grand Ankara in Turkey, and three further
conversions of properties joining the Vignette Collection.
Conversions accounted for 67% of all room openings in the
half.
Net system size grew +6.3% YOY, after removals of 2.0k rooms (11
hotels) in the half, with the removal rate being 1.1% over the last
12 months. The open hotels at the time of Ruby acquisition were
largely added into IHG’s system in Q2 last year, with the
small number of further additions since then contributing 0.3%pts
to net system growth YOY for the region.
There were 19.5k rooms (118 hotels) signed during the first half of
year, including 12.4k rooms (72 hotels) during Q2. Garner achieved
the largest number of signings in the half with 27, with these
spread across nine different countries but with particularly strong
development for the brand in Japan with 12 Garner signings as part
of a total portfolio of 14 hotels being converted to IHG’s
brands. For our other conversion-led brands, there were 17 signings
for voco, seven for Vignette Collection (including the first for
the brand in London) and the first three signings for the new Noted
Collection, launched in February. There were 20 signings in total
across IHG’s Luxury & Lifestyle brands, including both a
Regent and an InterContinental in Vietnam, and three further
InterContinental properties in India (two in Mumbai and Jaipur
Achrol Resort). The attraction to owners of our established brands
was also reflected in 9 Crowne Plaza signings (including Vienna,
marking the brand’s return to Austria), together with 35
signings across the Holiday Inn and Holiday Inn Express brands. The
latter included a trio of signings in Spain as the Holiday Inn
Express brand continues to build further upon its 300+ open and
pipeline properties across Europe. The Ruby brand is also further
expanding in Europe, with four more signings taking its pipeline in
the region to 20.
The pipeline stands at 124.5k rooms (691 hotels), which represents
42% of the current system size in the region.
a.
Includes exclusive
partner hotels.
|
GREATER CHINA
|
|
|
|
|
|
|
6 months ended 30 June
|
|||
|
Greater China results
|
2026
|
2025
|
%
|
|
|
|
$m
|
$m
|
change
|
|
|
Revenue from the reportable segmenta
|
|
|
|
|
|
Fee
business
|
88
|
76
|
15.8
|
|
|
|
_____
|
_____
|
_____
|
|
|
|
88
|
76
|
15.8
|
|
|
|
_____
|
_____
|
_____
|
|
|
Operating profit from the reportable segmenta
|
|
|
|
|
|
Fee
business
|
55
|
44
|
25.0
|
|
|
|
_____
|
_____
|
_____
|
|
|
Operating
profit
|
55
|
44
|
25.0
|
|
|
|
_____
|
_____
|
_____
|
|
|
Greater China RevPARa movement by
brand
|
6 months ended
30 June 2026
|
|||
|
|
|
|||
|
Total comparable estate by brand
|
|
|||
|
Regent
|
26.3%
|
|||
|
InterContinental
|
3.8%
|
|||
|
Hotel
Indigo
|
9.5%
|
|||
|
HUALUXE
|
3.8%
|
|||
|
Crowne
Plaza
|
2.0%
|
|||
|
Holiday
Inn Express
|
(2.3)%
|
|||
|
Holiday
Inn
|
(1.0)%
|
|||
|
All brands
|
3.1%
|
|||
H1
RevPAR grew +3.1%, with
rate +1.0% and occupancy +1.1%pts. Q1 RevPAR was particularly
strong at +5.7%, supported by excellent Leisure demand over the
Chinese New Year festive period. This was followed by Q2 growth of
+0.8%, which included an impact from public holiday timings. For H1
overall, RevPAR grew +4% in Tier 1 cities, Tier 2-3 cities were
slightly down, and Tier 4 cities were up +8% driven by resort
locations. There was also notably strong growth in Taiwan and Hong
Kong. Rooms revenue for the overall region on a comparable hotel
basis in H1 was driven by Leisure bookings which were up +8% YOY,
with Business and Groups both broadly flat. The outperformance by
brands in higher chainscales was a further reflection of the
strongest growth being in leisure-led and premium rate
locations.
Revenue from the reportable segmenta
was $12m higher (+15.8%) at
$88m, driven by the RevPAR growth together with incremental fees
added from net system growth. There were $19m of incentive
management fees earned (2025: $16m). Fee margina
increased +4.6%pts to 62.5%
compared to 57.9% in the comparable period, reflecting positive
operating leverage driven by the trading performance, system growth
and cost efficiencies, together with a higher level of strategic
cost investments incurred in the comparable period in 2025. As a
result, operating profit increased by $11m (+25.0%) to
$55m.
a.
Definitions for
non-GAAP measures can be found in the ’Key performance
measures and non-GAAP measures’ section, along with
reconciliations of these measures to the most directly comparable
line items within the Interim Financial Statements.
|
|
Hotels
|
|
Rooms
|
||
|
Greater China hotel and room count
|
|
Change over
|
|
|
Change over
|
|
|
2026
|
2025
|
|
2026
|
2025
|
|
|
30 June
|
31 December
|
|
30 June
|
31 December
|
|
Analysed
by brand
|
|
|
|
|
|
|
Six
Senses
|
1
|
–
|
|
130
|
–
|
|
Regent
|
6
|
–
|
|
2,054
|
–
|
|
InterContinental
|
66
|
–
|
|
24,493
|
(138)
|
|
Vignette
Collection
|
11
|
4
|
|
2,894
|
1,109
|
|
Kimpton
|
6
|
1
|
|
1,463
|
229
|
|
Hotel
Indigo
|
38
|
3
|
|
6,220
|
525
|
|
voco
|
36
|
8
|
|
7,567
|
2,195
|
|
HUALUXE
|
28
|
4
|
|
7,430
|
1,004
|
|
Crowne
Plaza
|
141
|
3
|
|
45,849
|
778
|
|
EVEN
Hotels
|
22
|
3
|
|
3,764
|
454
|
|
Holiday
Inn Express
|
414
|
27
|
|
68,909
|
3,627
|
|
Holiday
Inn
|
181
|
21
|
|
46,064
|
4,416
|
|
Garner
|
1
|
1
|
|
106
|
106
|
|
Atwell
Suites
|
2
|
1
|
|
342
|
168
|
|
Other
|
4
|
(1)
|
|
6,201
|
(368)
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Total
|
957
|
75
|
|
223,486
|
14,105
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
Franchised
|
486
|
57
|
|
94,743
|
10,003
|
|
Managed
|
471
|
18
|
|
128,743
|
4,102
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Total
|
957
|
75
|
|
223,486
|
14,105
|
|
|
_____
|
____
|
|
_______
|
______
|
|
|
Hotels
|
|
Rooms
|
||
|
Greater China Pipeline
|
|
Change
over
|
|
|
Change
over
|
|
|
2026
|
2025
|
|
2026
|
2025
|
|
|
30 June
|
31 December
|
|
30 June
|
31 December
|
|
Analysed by
brand
|
|
|
|
|
|
|
Six
Senses
|
2
|
1
|
|
147
|
75
|
|
Regent
|
3
|
1
|
|
696
|
169
|
|
InterContinental
|
32
|
1
|
|
8,593
|
(218)
|
|
Vignette
Collection
|
6
|
(3)
|
|
1,563
|
(748)
|
|
Kimpton
|
20
|
2
|
|
4,607
|
391
|
|
Hotel
Indigo
|
53
|
–
|
|
8,435
|
(194)
|
|
voco
|
28
|
6
|
|
5,794
|
343
|
|
HUALUXE
|
19
|
(4)
|
|
4,977
|
(1,063)
|
|
Crowne
Plaza
|
77
|
2
|
|
20,350
|
447
|
|
EVEN
Hotels
|
19
|
(1)
|
|
3,684
|
(139)
|
|
Holiday
Inn Express
|
213
|
(6)
|
|
33,011
|
(1,170)
|
|
Holiday
Inn
|
106
|
3
|
|
22,228
|
(240)
|
|
Garner
|
4
|
4
|
|
414
|
414
|
|
Atwell
Suites
|
9
|
3
|
|
1,340
|
486
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Total
|
591
|
9
|
|
115,839
|
(1,447)
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Analysed
by ownership type
|
|
|
|
|
|
|
Franchised
|
336
|
13
|
|
59,504
|
2,209
|
|
Managed
|
255
|
(4)
|
|
56,335
|
(3,656)
|
|
|
_____
|
____
|
|
_______
|
______
|
|
Total
|
591
|
9
|
|
115,839
|
(1,447)
|
|
|
_____
|
____
|
|
_______
|
______
|
Gross
system growth was +13.7%
YOY with the opening of 15.2k rooms (79 hotels) in the Greater
China region during the first half of the year, another record
level of hotel openings, of which 7.7k (42 hotels) opened in Q2.
Early in 2026 we celebrated our 900th opening, with the milestone
of 1,000 open hotels expected to be reached within the next 6
months. Openings in the first half of the year saw 50 for the
Holiday Inn Brand Family, including key locations such as Holiday
Inn Shanghai Tourism Zone. As conversion opportunities continue to
build, with these representing 31% of all room openings in the
half, there were eight voco openings (including the first in
Beijing), four for the Vignette Collection (including Resea Hotel
Beidaihe, the first for the collection in Northern China) and the
first for Garner which was launched into the region earlier in the
year. There were six other openings across IHG’s Luxury &
Lifestyle brands (including InterContinental Huzhou Taihu South and
Kimpton Nine Trees Shanghai), four for HUALUXE, three each for
Crowne Plaza and EVEN, and a second opening for Atwell Suites at
downtown Hefei, the capital of Anhui province, as the brand looks
to rapidly scale up following its launch in the region around a
year earlier.
Net system size grew +11.7% YOY, after removals of 1.1k rooms (4
hotels) in the half, with the removal rate being 2.0% over the last
12 months.
There were 17.1k rooms across a further record 103 hotels signed
during the first half year, including 8.7k rooms (51 hotels) during
Q2. During the half there were 29 hotel signings for Holiday Inn
and 31 for Holiday Inn Express, taking their pipelines to 106 and
213, respectively, and 6 signings for Crowne Plaza which has a
pipeline of 77 properties. The newly launched Garner brand achieved
its first five signings, the recently launched Atwell Suites brand
added four more, and signings for voco were notably strong at 13.
There were 12 signings across our Luxury & Lifestyle brands,
including Regent Chengdu. Our six Luxury & Lifestyle brands
represent around 20% of both the existing system size and the
pipeline in the region.
The pipeline stands at 115.8k rooms (591 hotels), which represents
52% of the current system size in the region.
CENTRAL
|
|
6 months ended 30 June
|
||
|
|
|
|
|
|
|
2026
|
2025
|
%
|
|
Central results
|
$m
|
$m
|
change
|
|
|
|
|
|
|
Revenue from the reportable segmenta
|
|
|
|
|
Fee
business
|
178
|
158
|
12.7
|
|
Insurance
activities
|
14
|
12
|
16.7
|
|
|
_____
|
_____
|
_____
|
|
|
192
|
170
|
12.9
|
|
|
_____
|
_____
|
_____
|
|
Gross costs
|
|
|
|
|
Fee
business
|
(156)
|
(137)
|
13.9
|
|
Insurance
activities
|
(9)
|
(16)
|
(43.8)
|
|
|
_____
|
_____
|
_____
|
|
|
(165)
|
(153)
|
7.8
|
|
|
_____
|
_____
|
_____
|
|
Operating profit from the reportable segmenta
|
|
|
|
|
Fee
business
|
22
|
21
|
4.8
|
|
Insurance
activities
|
5
|
(4)
|
NMb
|
|
|
_____
|
_____
|
_____
|
|
|
27
|
17
|
58.8
|
|
Operating
exceptional items
|
(1)
|
(1)
|
–
|
|
|
_____
|
_____
|
_____
|
|
Operating
profit
|
26
|
16
|
62.5
|
|
|
_____
|
_____
|
_____
|
Central
fee business revenue is mainly comprised of technology fee income,
co-brand licensing fees and a portion of revenue from the
consumption of certain IHG One Rewards points. Central revenue
additionally includes revenue recognised from insurance activities
relating to the managed hotel insurance programme. Central revenue
increased by $22m (12.9%) to $192m, primarily driven by the growth
of IHG's system size.
Gross costs increased by $12m (7.8%) year on year, driven by
investment to support growth initiatives, technology and AI
capabilities, and spend phasing that is expected to reverse in the
second half of the year, partly offset by lower claims associated
with the insurance programme.
The resulting $27m operating profit from the reportable
segmenta
was an increase of
$10m year-on-year. Operating profit of $26m included a $1m
exceptional cost in relation to the global efficiency programme
(further information on exceptional items can be found in note 5 to
the Interim Financial Statements).
a.
Definitions for non-GAAP measures can be found in the ’Key
performance measures and non-GAAP measures’ section, along
with reconciliations of these measures to the most directly
comparable line items within the Interim Financial
Statements.
b.
Percentage change considered not meaningful, such as where a
positive balance in the latest period is comparable to a negative
or zero balance in the prior period.
|
Key performance measures and non-GAAP measures
|
In
addition to performance measures directly observable in the Interim
Financial Statements (International Financial Reporting Standards
“IFRS” measures), certain financial measures are
presented when discussing the Group’s performance which are
not measures of financial performance or liquidity under IFRS. In
management’s view, these measures provide investors and other
stakeholders with an enhanced understanding of IHG’s
operating performance, profitability, financial strength and
funding requirements. These measures do not have standardised
meanings under IFRS, and companies do not necessarily calculate
these in the same way as each other. As these measures exclude
certain items (for example the costs of individually significant
legal cases or commercial disputes) they may be materially
different to the measures prescribed by IFRS and may result in a
more favourable view of performance. Accordingly, they should be
viewed as complementary to, and not as a substitute for, the
measures prescribed by IFRS and as included in the Financial
Statements.
Global
revenue per available room (RevPAR) growth
RevPAR
is the primary metric used by management to track hotel performance
across regions and brands. RevPAR is also a commonly used
performance measure in the hotel industry.
RevPAR
comprises IHG’s system rooms revenue divided by the number of
room nights available and can be derived from occupancy rate
multiplied by average daily rate (ADR). ADR is rooms revenue
divided by the number of room nights sold.
References
to RevPAR, occupancy and ADR are presented on a comparable basis,
comprising groupings of hotels that have traded in all months in
both the current and comparable year. The principal exclusions in
deriving this measure are new hotels (including those acquired),
hotels closed for major refurbishment and hotels sold in either of
the comparable years.
RevPAR
and ADR are quoted at a constant US$ exchange rate, in order to
allow a better understanding of the comparable year-on-year trading
performance excluding distortions created by fluctuations in
currency movements.
Total
gross revenue from hotels in IHG’s system
Total
gross revenue is revenue not wholly attributable to IHG, however,
management believes this measure is meaningful to investors and
other stakeholders as it provides a measure of system performance,
giving an indication of the strength of IHG’s brands and the
combined impact of IHG’s growth strategy and RevPAR
performance.
Total
gross revenue refers to revenue which IHG has a role in driving and
from which IHG derives an income stream.
Total
gross revenue comprises:
▪
Total rooms revenue
from franchised hotels;
▪
Total hotel revenue
from managed and exclusive partner hotels including food and
beverage, meetings and other revenues, reflecting the value driven
by IHG and the base upon which fees are typically earned;
and
▪
Total hotel revenue
from owned & leased hotels.
Other
than total hotel revenue from owned & leased hotels, total
gross revenue is not revenue attributable to IHG as these managed,
franchised and exclusive partner hotels are owned by third
parties.
Total
gross revenue is used to describe this measure as it aligns with
terms used in the Group’s management, franchise and exclusive
partner agreements and therefore is well understood by owners and
other stakeholders.
Revenue
and operating profit measures
Revenue
and operating profit from (1) fee business, (2) owned & leased
hotels, and (3) insurance activities are described as
‘revenue from reportable segments’ and ‘operating
profit from reportable segments’, respectively, within note 3
to the Interim Financial Statements. These measures are presented
insofar as they relate to each of the Group’s regions and its
Central functions. Management believes revenue and operating profit
from reportable segments are meaningful to investors and other
stakeholders as they exclude the following elements and reflect how
management monitors the business:
▪
System Fund and reimbursables –
the System Fund is not managed to generate a surplus or deficit for
IHG over the longer term; it is managed for the benefit of the
hotels within the IHG system. The System Fund is operated to
collect and administer cash assessments from hotel owners for
specific purposes of use including marketing, the Guest Reservation
System, certain hotel services and the Group’s loyalty
programme. There is a cost equal to reimbursable revenues so there
is no profit impact. Cost reimbursements are not applicable to all
hotels, and growth in these revenues is not reflective of growth in
the performance of the Group. As such, management does not include
these revenues in their analysis of results.
▪
Exceptional items – these are
identified by virtue of their size, nature or incidence with
consideration given to consistency of treatment with prior years
(including items that impact more than one reporting period) and
between gains and losses. Examples of exceptional items include,
but are not restricted to, gains and losses on the disposal of
assets, impairment charges and reversals, the costs of individually
significant legal cases or commercial disputes, and reorganisation
costs. As each item is different in nature and scope, there will be
little continuity in the detailed composition and size of the
reported amounts which affect performance in successive periods.
Separate disclosure of these amounts facilitates the understanding
of performance including and excluding such items. Further detail
of amounts presented as exceptional is included in notes 5 and 6 to
the Interim Financial Statements.
In
further discussing the Group’s performance in respect of
revenue and operating profit, additional non-IFRS measures are used
and explained further below:
▪
Underlying
revenue;
▪
Underlying
operating profit;
▪
Underlying fee
revenue; and
▪
Fee
margin.
Operating
profit measures are, by their nature, before interest and tax. The
Group's reported operating profit additionally excludes
remeasurement gains/losses on contingent purchase consideration,
which relates to financing of acquisitions. Management believes
such measures are useful for investors and other stakeholders when
comparing performance across different companies as interest and
tax can vary widely across different industries or among companies
within the same industry. For example, interest expense can be
highly dependent on a company’s capital structure, debt
levels and credit ratings. In addition, the tax positions of
companies can vary because of their differing abilities to take
advantage of tax benefits and because of the tax policies of the
various jurisdictions in which they operate.
Although
management believes these measures are useful to investors and
other stakeholders in assessing the Group’s ongoing financial
performance and provide improved comparability between periods,
there are limitations in their use as compared to measures of
financial performance under IFRS. As such, they should not be
considered in isolation or viewed as a substitute for IFRS
measures. In addition, these measures may not necessarily be
comparable to other similarly titled measures of other companies
due to potential inconsistencies in the methods of
calculation.
Underlying
revenue and underlying operating profit
These
measures adjust revenue from reportable segments and operating
profit from reportable segments, respectively, to exclude revenue
and operating profit generated by owned & leased hotels which
have been disposed, and significant liquidated damages, which are
not comparable year-on-year and are not indicative of the
Group’s ongoing profitability. The revenue and operating
profit of current year acquisitions are also excluded as these
obscure underlying business results and trends when comparing to
the prior year. In addition, in order to remove the impact of
fluctuations in foreign exchange, which would distort the
comparability of the Group’s operating performance, current
year measures are restated at constant currency using prior year
exchange rates.
Management
believes these are meaningful to investors and other stakeholders
to better understand comparable year-on-year trading and enable
assessment of the underlying trends in the Group’s financial
performance.
Underlying
fee revenue growth
Underlying
fee revenue is used to calculate underlying fee revenue growth.
Underlying fee revenue is calculated on the same basis as
underlying revenue as described above but for the fee business
only.
Management
believes underlying fee revenue is meaningful to investors and
other stakeholders as an indicator of IHG’s ability to grow
the core fee-based business, aligned to IHG’s asset-light
strategy.
Fee
margin
Fee
margin is presented at actual exchange rates and is a measure of
the profit arising from fee revenue. Fee margin is calculated by
dividing fee operating profit by fee revenue. Fee revenue and fee
operating profit are calculated from revenue from reportable
segments and operating profit from reportable segments, as defined
above, adjusted to exclude revenue and operating profit from the
Group’s owned & leased hotels as well as from insurance
activities and significant liquidated damages.
Management
believes fee margin is meaningful to investors and other
stakeholders as an indicator of the sustainable long-term growth in
the profitability of IHG’s core fee-based business, as the
scale of IHG’s operations increases with growth in
IHG’s system size.
Adjusted
interest
Adjusted
interest is presented before exceptional items and the following
items of interest which are recorded within the System
Fund:
▪
Interest income is
recorded in the System Fund on the outstanding cash balance
relating to the IHG loyalty programme. These interest payments are
recognised as interest expense for IHG.
▪
Other components of
System Fund interest income and expense, including capitalised
interest, lease interest expense and interest income on overdue
receivables.
Given
results related to the System Fund are excluded from adjusted
measures used by management, these are excluded from adjusted
interest and adjusted earnings per ordinary share (see
below).
Management
believes adjusted interest is a meaningful measure for investors
and other stakeholders as it provides an indication of the
comparable year-on-year expense associated with financing the
business including the interest on any balance held on behalf of
the System Fund.
Adjusted
tax
Adjusted
tax excludes the impact of foreign exchange gains/losses,
exceptional items, the System Fund and remeasurement gains/losses
on contingent consideration.
Foreign
exchange gains/losses vary year on year depending on the movement
in exchange rates, and remeasurement gains/losses on contingent
consideration and exceptional items also vary year on year. These
can impact the current year’s tax charge. The System Fund
(including interest and tax) is not managed to a surplus or deficit
for IHG over the longer term and is, in general, not subject to
tax. Management believes removing these from both profit and tax
provides a better view of the Group’s underlying tax rate on
ordinary operations and aids comparability year on year, thus
providing a more meaningful understanding of the Group’s
ongoing tax charge.
Adjusted
earnings per ordinary share
Adjusted
earnings per ordinary share adjusts the profit available for equity
holders used in the calculation of basic earnings per share to
remove the System Fund and reimbursable result, interest
attributable to the System Fund and foreign exchange gains/losses,
change in remeasurement gains/losses on contingent purchase
consideration, exceptional items, and the related tax impacts of
such adjustments and exceptional tax.
Management
believes that adjusted earnings per share is a meaningful measure
for investors and other stakeholders as it provides a more
comparable earnings per share measure aligned with how management
monitors the business.
Net
debt
Net
debt is used in the monitoring of the Group’s liquidity and
capital structure and is used by management in the calculation of
the leverage ratios with the objective of maintaining an investment
grade credit rating. Net debt is used by investors and other
stakeholders to evaluate the financial strength of the
business.
Net
debt comprises loans and other borrowings, lease liabilities, the
principal amounts payable and receivable on maturity of derivatives
swapping debt values, less cash and cash equivalents. A summary of
the composition of net debt is included in note 10 to the Interim
Financial Statements.
Adjusted
EBITDA
One of
the key measures used by the Group in monitoring its debt and
capital structure is the net debt: adjusted EBITDA ratio, which is
managed with the objective of maintaining an investment grade
credit rating. The Group has a stated aim of targeting this ratio
at 2.5-3.0x. Adjusted EBITDA is defined as cash flow from
operations, excluding cash flows relating to exceptional items,
cash flows arising from the System Fund and reimbursable result,
other non-cash adjustments to operating profit or loss, working
capital and other adjustments, and contract acquisition
costs.
Adjusted
EBITDA is useful to investors as an approximation of operational
cash flow generation.
Adjusted
free cash flow, gross capital expenditure, net capital
expenditure
These
measures have limitations as they omit certain components of the
overall cash flow statement. They are not intended to represent
IHG’s residual cash flow available for discretionary
expenditures, nor do they reflect the Group’s future capital
commitments. These measures are used by many companies, but there
can be differences in how each company defines the terms, limiting
their usefulness as a comparative measure. Therefore, it is
important to view these measures only as a complement to the Group
statement of cash flows.
Adjusted
free cash flow
Adjusted
free cash flow is net cash from operating activities adjusted for:
(1) the inclusion of the cash outflow arising from the purchase of
shares by employee share trusts reflecting the requirement to
satisfy incentive schemes which are linked to operating
performance; (2) the inclusion of gross maintenance capital
expenditure; (3) the exclusion of cash flows relating to
exceptional items; and (4) where cash flows are split between
categories in the Group statement of cash flows, cash flows from
investing or financing activities may be included or excluded in
adjusted free cash flow to maintain consistency of the measure.
This includes: (a) the inclusion of the principal element of lease
payments; (b) the exclusion of payments of deferred or contingent
purchase consideration included within net cash from operating
activities; (c) the exclusion of interest receipts related to owner
loans within net cash from operating activities (d) the exclusion
of recyclable investments in contract acquisition costs within net
cash from operating activities; (e) the inclusion of payments and
repayments related to investments supporting the Group’s
insurance activities; (f) the inclusion of finance lease income
relating to sub-leases where payments on the headlease are included
in (a); (g) the exclusion of any lease incentives recorded within
operating activities.
Management
believes adjusted free cash flow is a useful measure for investors
and other stakeholders as it represents the cash available to
invest back into the business to drive future growth and pay the
ordinary dividend, with any surplus being available for additional
returns to shareholders. It is a key component in measuring the
ongoing viability of our business and is a key reference point to
our investment case.
Gross
capital expenditure
Gross
capital expenditure represents the consolidated capital expenditure
of IHG inclusive of System Fund capital investments. Gross capital
expenditure is defined as net cash from investing activities,
adjusted to include contract acquisition costs and to exclude
payments and repayments related to investments supporting the
Group’s insurance activities and changes in bank accounts
pledged as security. In order to demonstrate the capital outflow of
the Group, cash flow receipts such as those arising from disposals
and distributions from associates and joint ventures, and finance
lease income, are excluded. Lease incentives and similar
contributions received are included in gross capital expenditure as
they directly reduce the Group’s outlay. The measure also
excludes any material investments made in acquiring businesses
(including brands), including any subsequent payments of deferred
or contingent purchase consideration included within investing
activities, which represent ongoing payments for
acquisitions.
Gross
capital expenditure is reported as key money, maintenance,
recyclable or System Fund. Contract acquisition costs are defined
as either key money or recyclable, depending on whether they form
part of other recyclable investments, such as any difference
between the face and market value of an owner loan on
inception.
This
disaggregation provides useful information as it enables users to
distinguish between:
▪
Key money, which
reflects amounts paid to owners to secure management and franchise
agreements;
▪
Maintenance capital
expenditure, which reflects investments to maintain our systems,
corporate offices and owned & leased hotels;
▪
System Fund capital
investments which are strategic investments to drive growth at
hotel level; and
▪
Recyclable
investments, such as all investments in associates and joint
ventures and any loans to facilitate third-party ownership of hotel
assets, which are generally intended to be recoverable in the
medium term and are to drive growth of the Group’s brands and
expansion in primary markets.
Management
believes gross capital expenditure is a useful measure as it
illustrates how the Group continues to invest in the business to
drive growth. It also allows for comparison
year-on-year.
Net
capital expenditure
Net
capital expenditure provides an indicator of the capital intensity
of IHG’s business model. Net capital expenditure is derived
from net cash from investing activities, which includes receipts
such as those arising from disposals and distributions from
associates and joint ventures, adjusted to include contract
acquisition costs (net of repayments) and interest receipts from
owner loans, and to exclude payments and repayments related to
investments supporting the Group’s insurance activities,
changes in bank accounts pledged as security, finance lease income
and any material investments made in acquiring businesses
(including brands), including any subsequent payments of deferred
or contingent purchase consideration included within investing
activities which are typically non-recurring in
nature.
In
addition, System Fund depreciation and amortisation relating to
property, plant and equipment and intangible assets, respectively,
is added back, reducing the overall cash outflow. This reflects the
way in which System Funded capital investments are recovered from
the System Fund, over the life of the asset.
Management
believes net capital expenditure is a useful measure as it
illustrates the net capital investment by IHG, after taking into
account capital recycling through asset disposal and the funding of
strategic investments by the System Fund. It provides investors and
other stakeholders with visibility of the cash flows which are
allocated to long-term investments to drive the Group’s
strategy.
Change
in definitions to the 2025 Annual Report and Accounts
The
definition of ‘underlying revenue', 'underlying operating
profit' and 'underlying fee revenue growth' have been updated to
quantify foreign exchange movements by restating current year
measures at prior year exchange rates. Previously, underlying
results were calculated by restating prior year measures at current
year exchange rates. This change isolates the foreign exchange
impact within the current year's reported results, while
maintaining a consistent basis for comparison against the prior
year. There is no impact on reported results or adjusted profit
measures.
Revenue
and operating profit non-GAAP reconciliations
Highlights
for the 6 months ended 30 June
|
Reportable segments
|
Revenue
|
|
Operating profit
|
||||
|
|
|
|
|
|
|
|
|
|
|
2026
|
2025
|
%
|
|
2026
|
2025
|
%
|
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
|
|
Per Group income statement
|
2,659
|
2,519
|
5.6
|
|
671
|
623
|
7.7
|
|
System Fund and reimbursables
|
(1,404
|
(1,344
|
4.5
|
|
(9
|
(31
|
(71.0)
|
|
Operating exceptional items
|
–
|
–
|
–
|
|
3
|
12
|
(75.0)
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
Reportable segments
|
1,255
|
1,175
|
6.8
|
|
665
|
604
|
10.1
|
|
|
|
|
|
|
|
|
|
|
Reportable segments analysed as:
|
|
|
|
|
|
|
|
|
Fee business
|
971
|
908
|
6.9
|
|
640
|
590
|
8.5
|
|
Owned
& leased
|
270
|
255
|
5.9
|
|
20
|
18
|
11.1
|
|
Insurance activities
|
14
|
12
|
16.7
|
|
5
|
(4
|
NMa
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
Reportable segments
|
1,255
|
1,175
|
6.8
|
|
665
|
604
|
10.1
|
Underlying
revenue and underlying operating profit
|
|
Revenue
|
|
Operating profit
|
||||
|
|
|
|
|
||||
|
|
2026
|
2025
|
%
|
|
2026
|
2025
|
%
|
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
Change
|
|
|
|
|
|
|
|
|
|
|
Reportable segments (see above)
|
1,255
|
1,175
|
6.8
|
|
665
|
604
|
10.1
|
|
Significant liquidated damages
|
–
|
(7
|
NMa
|
|
–
|
(7
|
NMa
|
|
Currency impact
|
(17
|
–
|
NMa
|
|
(6
|
–
|
NMa
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
Underlying revenue and underlying operating profit
|
1,238
|
1,168
|
6.0
|
|
659
|
597
|
10.4
|
a.
Percentage change
considered not meaningful, such as where a positive balance in the
latest period is comparable to a negative or zero balance in the
prior period.
Underlying fee revenue and underlying fee operating
profit
|
|
Revenue
|
|
Operating profita
|
||||
|
|
|
|
|
|
|
||
|
|
2026
|
2025
|
%
|
|
2026
|
2025
|
%
|
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
|
|
Reportable segments fee business (see above)
|
971
|
908
|
6.9
|
|
640
|
590
|
8.5
|
|
Significant liquidated damages
|
–
|
(7
|
NMb
|
|
–
|
(7
|
NMb
|
|
Currency impact
|
(13
|
–
|
NMb
|
|
(7
|
–
|
NMb
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
Underlying fee revenue and underlying fee operating
profit
|
958
|
901
|
6.3
|
|
633
|
583
|
8.6
|
Americas
|
|
Revenue
|
|
Operating profita
|
||||
|
|
|
|
|
|
|
|
|
|
|
2026
|
2025
|
%
|
|
2026
|
2025
|
%
|
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
|
|
Per financial statements
|
584
|
561
|
4.1
|
|
442
|
415
|
6.5
|
|
|
|
|
|
|
|
|
|
|
Reportable segments analysed as:
|
|
|
|
|
|
|
|
|
Fee business
|
493
|
475
|
3.8
|
|
415
|
394
|
5.3
|
|
Owned
& leased
|
91
|
86
|
5.8
|
|
27
|
21
|
28.6
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
|
584
|
561
|
4.1
|
|
442
|
415
|
6.5
|
|
|
|
|
|
|
|
|
|
|
Reportable segments (see above)
|
584
|
561
|
4.1
|
|
442
|
415
|
6.5
|
|
Significant liquidated damages
|
–
|
(7
|
NMb
|
|
–
|
(7
|
NMb
|
|
Currency impact
|
(3
|
–
|
NMb
|
|
(2
|
–
|
NMb
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
Underlying revenue and
underlying operating profit
|
581
|
554
|
4.9
|
|
440
|
408
|
7.8
|
|
|
|
|
|
|
|
|
|
|
Owned
& leased included in the above
|
(91
|
(86
|
5.8
|
|
(27
|
(21
|
28.6
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
Underlying fee business
|
490
|
468
|
4.7
|
|
413
|
387
|
6.7
|
a.
Before exceptional
items.
b.
Percentage change
considered not meaningful, such as where a positive balance in the
latest period is comparable to a negative or zero balance in the
prior period.
EMEAA
|
|
Revenue
|
|
Operating profita
|
||||
|
|
|
|
|
|
|
|
|
|
|
2026
|
2025
|
%
|
|
2026
|
2025
|
%
|
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
|
|
Per financial statements
|
391
|
368
|
6.3
|
|
141
|
128
|
10.2
|
|
|
|
|
|
|
|
|
|
|
Reportable segments analysed as:
|
|
|
|
|
|
|
|
|
Fee business
|
212
|
199
|
6.5
|
|
148
|
131
|
13.0
|
|
Owned
& leased
|
179
|
169
|
5.9
|
|
(7)
|
(3)
|
133.3
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
|
391
|
368
|
6.3
|
|
141
|
128
|
10.2
|
|
|
|
|
|
|
|
|
|
|
Reportable segments (see above)
|
391
|
368
|
6.3
|
|
141
|
128
|
10.2
|
|
Currency impact
|
(8)
|
–
|
NMb
|
|
(2)
|
–
|
NMb
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
Underlying revenue and underlying operating profit
|
383
|
368
|
4.1
|
|
139
|
128
|
8.6
|
|
|
|
|
|
|
|
|
|
|
Owned
& leased included in the above
|
(175)
|
(169)
|
3.6
|
|
6
|
3
|
100.0
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
Underlying fee business
|
208
|
199
|
4.5
|
|
145
|
131
|
10.7
|
Greater
China
|
|
Revenue
|
|
Operating profita
|
||||
|
|
|
|
|
|
|
|
|
|
|
2026
|
2025
|
%
|
|
2026
|
2025
|
%
|
|
|
$m
|
$m
|
change
|
|
$m
|
$m
|
change
|
|
|
|
|
|
|
|
|
|
|
Per financial statements
|
88
|
76
|
15.8
|
|
55
|
44
|
25.0
|
|
|
|
|
|
|
|
|
|
|
Reportable segments analysed as:
|
|
|
|
|
|
|
|
|
Fee business
|
88
|
76
|
15.8
|
|
55
|
44
|
25.0
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
|
88
|
76
|
15.8
|
|
55
|
44
|
25.0
|
|
|
|
|
|
|
|
|
|
|
Reportable segments (see above)
|
88
|
76
|
15.8
|
|
55
|
44
|
25.0
|
|
Currency impact
|
(4
|
–
|
NMb
|
|
(2
|
–
|
NMb
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
Underlying revenue and underlying operating profit
|
84
|
76
|
10.5
|
|
53
|
44
|
20.5
|
a.
Before exceptional
items.
b.
Percentage change
considered not meaningful, such as where a positive balance in the
latest period is comparable to a negative or zero balance in the
prior period.
Fee
margin reconciliation
|
|
6 months ended 30 June 2026
|
||||
|
|
|
||||
|
|
Americas
|
EMEAA
|
Greater China
|
Centrala
|
Total
|
|
Revenue $m
|
|
|
|
|
|
|
Reportable segments analysed as fee business (see
above)
|
493
|
212
|
88
|
178
|
971
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
493
|
212
|
88
|
178
|
971
|
|
|
|
|
|
|
|
|
Operating profit $m
|
|
|
|
|
|
|
Reportable segments analysed as fee business (see
above)
|
415
|
148
|
55
|
22
|
640
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
415
|
148
|
55
|
22
|
640
|
|
|
|
|
|
|
|
|
Fee margin %
|
84.2%
|
69.8%
|
62.5%
|
12.4%
|
65.9%
|
|
|
6 months ended 30 June 2025
|
||||
|
|
|
|
|
|
|
|
|
Americas
|
EMEAA
|
Greater China
|
Centrala
|
Total
|
|
Revenue $m
|
|
|
|
|
|
|
Reportable segments analysed as fee business (see
above)
|
475
|
199
|
76
|
158
|
908
|
|
Significant liquidated damages
|
(7)
|
–
|
–
|
–
|
(7)
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
468
|
199
|
76
|
158
|
901
|
|
|
|
|
|
|
|
|
Operating profit $m
|
|
|
|
|
|
|
Reportable segments analysed as fee business (see
above)
|
394
|
131
|
44
|
21
|
590
|
|
Significant liquidated damages
|
(7)
|
–
|
–
|
–
|
(7)
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
387
|
131
|
44
|
21
|
583
|
|
|
|
|
|
|
|
|
Fee margin %
|
82.7%
|
65.8%
|
57.9%
|
13.3%
|
64.7%
|
a.
Central fee business revenue and operating profit as per note 3 to
the Interim Financial Statements, and excludes revenue and
operating profit from insurance activities of $14m and $5m,
respectively (2025: $12m and $4m loss).
Net
and gross capital expenditure reconciliation
|
|
6 months ended 30 June
|
|
|
||||
|
|
2026
|
|
|
|
2025
|
|
|
|
|
$m
|
|
|
|
$m
|
|
|
|
Net cash from investing activities
|
(73)
|
|
|
|
(147)
|
|
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
Contract
acquisition costs, net of repayments
|
(98)
|
|
|
|
(87)
|
|
|
|
System
Fund depreciation and amortisationa
|
33
|
|
|
|
39
|
|
|
|
Payment
of deferred and contingent purchase consideration
|
14
|
|
|
|
–
|
|
|
|
Payments/(repayments)
related to investments supporting the Group’s insurance
activities
|
3
|
|
|
|
(8)
|
|
|
|
Purchase of
brands
|
–
|
|
|
|
120
|
|
|
|
Finance
lease receipts
|
(2)
|
|
|
|
(2)
|
|
|
|
|
_____
|
|
|
|
_____
|
|
|
|
Net capital expenditure
|
(123)
|
|
|
|
(85)
|
|
|
|
Further adjusted for:
|
|
|
|
|
|
|
|
|
Other
disposals and repayments
|
(2)
|
|
|
|
–
|
|
|
|
System
Fund depreciation and amortisationa
|
(33)
|
|
|
|
(39)
|
|
|
|
|
_____
|
|
|
|
_____
|
|
|
|
Gross capital expenditure
|
(158)
|
|
|
|
(124)
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysed as:
|
Gross
|
Repaid
|
Net
|
|
Gross
|
Repaid
|
Net
|
|
Key money contract acquisition costs
|
(83)
|
–
|
(83)
|
|
(86)
|
–
|
(86)
|
|
Maintenance
|
(12)
|
–
|
(12)
|
|
(10)
|
–
|
(10)
|
|
Recyclable capital expenditure
|
|
|
|
|
|
|
|
|
Recyclable
contract acquisition costs
|
(15)
|
–
|
(15)
|
|
(1)
|
–
|
(1)
|
|
Other
recyclable investments
|
(27)
|
2
|
(25)
|
|
(8)
|
–
|
(8)
|
|
Capital expenditure: System Fund investments
|
(21)
|
33
|
12
|
|
(19)
|
39
|
20
|
|
|
_____
|
_____
|
_____
|
|
_____
|
_____
|
_____
|
|
Total capital expenditure
|
(158)
|
35
|
(123)
|
|
(124)
|
39
|
(85)
|
a.
Excludes
depreciation of right-of-use assets
Adjusted
free cash flow reconciliation
|
|
6 months ended
30 June
|
|
|
|
|
|
|
|
2026
|
2025
|
|
|
$m
|
$m
|
|
|
|
|
|
Net cash from operating activities
|
355
|
312
|
|
Adjusted for:
|
|
|
|
Purchase
of shares by employee share trusts
|
(5)
|
–
|
|
Gross
maintenance capital expenditure
|
(12)
|
(10)
|
|
Cash
flows relating to exceptional items
|
7
|
4
|
|
Principal
element of lease payments
|
(5)
|
(15)
|
|
Deferred and
contingent purchase consideration
|
6
|
–
|
|
Recyclable
contract acquisition costs
|
15
|
1
|
|
Repayments related
to investments supporting the Group’s insurance
activities
|
(3)
|
8
|
|
Finance
lease receipts
|
2
|
2
|
|
|
_____
|
_____
|
|
Adjusted free cash flow
|
360
|
302
|
|
|
_____
|
_____
|
Adjusted
interest reconciliation
|
|
6 months ended
30 June
|
|
|
|
|
|
|
|
2026
|
2025
|
|
|
|
Re-presenteda
|
|
|
$m
|
$m
|
|
Net financial expenses
|
|
|
|
Financial income
|
25
|
25
|
|
Financial expenses
|
(111)
|
(91)
|
|
|
_____
|
_____
|
|
|
(86)
|
(66)
|
|
Adjusted for:
|
|
|
|
Interest
attributable to the System Fund
|
(20)
|
(25)
|
|
|
_____
|
_____
|
|
Adjusted interest
|
(106)
|
(91)
|
|
|
_____
|
_____
|
a.
An adjustment was
previously made to remove foreign exchange gains presented within
‘financial income’. These are now reported separately
in the Group Income Statement. This change does not affect the
total adjusted interest.
Adjusted
tax and tax rate reconciliation
|
|
2026
|
|
2025
|
||||||
|
|
Profit before tax
$m
|
Tax
$m
|
Tax
rate
|
|
Profit
before tax
$m
|
Tax
$m
|
Tax
rate
|
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
|
Group income statement
|
578
|
(153)
|
26.5
|
%
|
|
633
|
(164)
|
25.9
|
%
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
||
|
Exceptional
items
|
3
|
(1)
|
|
|
12
|
18
|
|
||
|
Foreign
exchange losses/(gains)
|
7
|
1
|
|
|
(79)
|
8
|
|
||
|
System Fund
|
(9)
|
6
|
|
|
(31)
|
4
|
|
||
|
Interest attributable to the System Fund
|
(20)
|
–
|
|
|
(25)
|
–
|
|
||
|
Remeasurement
losses on contingent purchase consideration
|
–
|
–
|
|
|
3
|
–
|
|
||
|
|
_____
|
_____
|
|
|
_____
|
_____
|
|
||
|
Adjusted tax and tax rate
|
559
|
(147)
|
26.3
|
%
|
|
513
|
(134)
|
26.1
|
%
|
|
|
|
|
|
|
|
|
|
||
Adjusted
earnings per ordinary share reconciliation
|
|
6 months ended 30 June
|
|
|
|
|
|
|
|
2026
|
2025
|
|
|
$m
|
$m
|
|
Profit available for equity holders
|
425
|
469
|
|
Adjusting
items:
|
|
|
|
System
Fund and reimbursable result
|
(9)
|
(31)
|
|
Interest
attributable to the System Fund
|
(20)
|
(25)
|
|
Operating
exceptional items
|
3
|
12
|
|
Remeasurement
losses on contingent purchase consideration
|
–
|
3
|
|
Foreign
exchange losses/(gains)
|
7
|
(79)
|
|
Tax
attributable to the System Fund
|
6
|
4
|
|
Tax on
foreign exchange losses/gains
|
1
|
8
|
|
Tax
exceptional items
|
(1)
|
18
|
|
|
_____
|
_____
|
|
Adjusted earnings
|
412
|
379
|
|
|
|
|
|
Basic weighted average number of ordinary shares
(millions)
|
150.0
|
156.3
|
|
Adjusted
earnings per ordinary share (cents)
|
274.7
|
242.5
|
|
|
|
|
PRINCIPAL
RISKS AND UNCERTAINTIES
The
principal risks and uncertainties that could substantially affect
IHG’s business and results are set out on pages 48 to 53 of
the IHG Annual Report and Form 20-F 2025 (the 2025 Annual
Report).
Our
Board and management continue to regularly review our principal
risks and uncertainties, opportunities and emerging risks, risk
management and internal control arrangements, considering a range
of developments across the operating environment, including
geopolitical instability particularly the ongoing conflict in the
Middle East (and related disruption to regional travel flows,
impact on supply chains, energy markets, inflation and interest
rates), evolving legislative and regulatory developments,
continuing cybersecurity threats and the rapid pace of technology
development across the travel and hospitality sector.
While
these developments have affected the level of uncertainty
associated with, and the interactions between, a number of the
Group's principal risks, the Board considers that the principal
risks and uncertainties which the Group faces in relation to the
achievement of our objectives for the remainder of 2026, summarised
below, remain substantively unchanged from those disclosed in the
2025 Annual Report:
▪
Guest preferences
or loyalty for IHG branded hotel experiences and
channels
▪
Owner preferences
for, or ability to invest in, our brands
▪
Talent and
capability attraction, retention and development
▪
Data and
information usage, storage, security and transfer
▪
Ethical and social
expectations
▪
Legal, regulatory
and contractual complexity or litigation exposures
▪
Supply chain
efficiency and resilience (including corporate and hotel products
and services)
▪
Operational
resilience to incidents or disruption or control breakdown
(including geopolitical, safety and security, cybersecurity, fraud
and health-related)
▪
Our ability to
deliver technological or digital performance or innovation at scale
and speed
▪
The impact of
climate-related physical and transition risks
These
principal risks and uncertainties are supported by a broader
description of risk factors set out on pages 264 to 271 of the 2025
Annual Report.
RELATED
PARTY TRANSACTIONS
There
were no material related party transactions during the six months
to 30 June 2026.
GOING
CONCERN
As at
30 June 2026, the Group had total liquidity of $2,298m, comprising
$1,500m of undrawn bank facilities and $798m of cash and cash
equivalents (net of overdrafts and restricted cash). There remains
a wide range of possible planning scenarios over the going concern
period. The scenarios considered and assessment made by the
Directors in adopting the going concern basis for preparing these
financial statements are included in note 1 to the Interim
Financial Statements.
Based
on the assessment completed, the Directors have a reasonable
expectation that the Group has sufficient resources to continue
operating until at least 31 December 2027. Accordingly, they
continue to adopt the going concern basis in preparing the Interim
Financial Statements.
DIRECTORS’
RESPONSIBILITY STATEMENT
The
Directors confirm that to the best of their knowledge:
▪
The condensed set
of Financial Statements has been prepared in accordance with
UK-adopted IAS 34 and the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom’s Financial Conduct
Authority;
▪
The interim
management report includes a fair review of the important events
during the first six months, and their impact on the financial
statements and a description of the principal risks and
uncertainties for the remaining six months of the year, as required
by DTR 4.2.7R; and
▪
The interim
management report includes a fair review of related party
transactions and changes therein, as required by DTR
4.2.8R.
On
behalf of the Board
|
Elie Maalouf
|
Michael Glover
|
|
|
|
|
Chief Executive Officer
|
Chief Financial Officer
|
|
|
|
|
10 August 2026
|
10 August 2026
|
INTERCONTINENTAL
HOTELS GROUP PLC
GROUP
INCOME STATEMENT
For
the six months ended 30 June 2026
|
|
2026
|
2025
|
|
|
|
6 months ended
|
6 months ended
|
|
|
|
30 June
|
30 June
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
Revenue
from fee business
|
971
|
908
|
|
|
Revenue
from owned & leased
hotels
|
270
|
255
|
|
|
Revenue
from insurance activities
|
14
|
12
|
|
|
System
Fund and reimbursable revenues
|
1,404
|
1,344
|
|
|
|
_____
|
_____
|
|
|
Total revenue (notes 3 and 4)
|
2,659
|
2,519
|
|
|
|
|
|
|
|
Cost of sales and administrative expenses
|
(550)
|
(527)
|
|
|
System
Fund and reimbursable expenses
|
(1,395)
|
(1,313)
|
|
|
Insurance
expenses
|
(9)
|
(16)
|
|
|
Share
of profits of associates and joint ventures
|
3
|
3
|
|
|
Other
operating income
|
6
|
4
|
|
|
Depreciation
and amortisation
|
(32)
|
(33)
|
|
|
Impairment
loss on financial assets
|
(11)
|
(14)
|
|
|
|
_____
|
_____
|
|
|
Operating profit (note 3)
|
671
|
623
|
|
|
|
|
|
|
|
Operating
profit analysed as:
|
|
|
|
|
Operating
profit before System Fund, reimbursables and
exceptional
items
|
665
|
604
|
|
|
System
Fund and reimbursable result
|
9
|
31
|
|
|
Operating
exceptional items (note 5)
|
(3)
|
(12)
|
|
|
|
_____
|
_____
|
|
|
|
671
|
623
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
income
|
25
|
25
|
|
|
Financial
expenses
|
(111)
|
(91)
|
|
|
Foreign
exchange (losses)/gains
|
(7)
|
79
|
|
|
Remeasurement
of contingent purchase consideration
|
–
|
(3)
|
|
|
|
_____
|
_____
|
|
|
Profit before tax
|
578
|
633
|
|
|
|
|
|
|
|
Tax
(note 6)
|
(153)
|
(164)
|
|
|
|
_____
|
_____
|
|
|
Profit for the period
|
425
|
469
|
|
|
|
_____
|
_____
|
|
|
Attributable
to:
|
¯¯¯¯
|
¯¯¯¯
|
|
|
Equity
holders of the parent
|
425
|
469
|
|
|
Non-controlling
interest
|
–
|
–
|
|
|
|
_____
|
_____
|
|
|
|
425
|
469
|
|
|
|
_____
|
_____
|
|
|
Earnings per ordinary share (note 8)
|
¯¯¯¯
|
¯¯¯¯
|
|
|
Basic
|
283.3¢
|
300.1¢
|
|
|
Diluted
|
281.3¢
|
297.2¢
|
|
INTERCONTINENTAL
HOTELS GROUP PLC
GROUP
STATEMENT OF COMPREHENSIVE INCOME
For
the six months ended 30 June 2026
|
|
2026
|
2025
|
|
|
6 months ended
|
6 months ended
|
|
|
30 June
|
30 June
|
|
|
$m
|
$m
|
|
|
|
|
|
Profit for the period
|
425
|
469
|
|
|
|
|
|
Other comprehensive income/(loss)
|
|
|
|
Items
that may be subsequently reclassified to profit or
loss:
|
|
|
|
(Losses)/gains on
cash flow hedges, including related tax charge
of $9m (2025: $4m
credit)
|
(79)
|
163
|
|
(Losses)/gains on
net investment hedges
|
(7)
|
42
|
|
Costs
of hedging
|
2
|
5
|
|
Hedging
losses/(gains) reclassified to financial expenses
|
103
|
(179)
|
|
Exchange
gains/(losses) on retranslation of foreign operations, including
related tax credit of $1m (2025: $2m charge)
|
16
|
(156)
|
|
|
_____
|
_____
|
|
|
35
|
(125)
|
|
Items
that will not be reclassified to profit or loss:
|
|
|
|
Losses
on equity instruments classified as fair value through other
comprehensive income
|
(1)
|
–
|
|
|
_____
|
_____
|
|
|
(1)
|
–
|
|
|
_____
|
_____
|
|
Total other comprehensive income/(loss) for the period
|
34
|
(125)
|
|
|
_____
|
_____
|
|
Total comprehensive income for the period
|
459
|
344
|
|
|
_____
|
_____
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
Attributable
to:
|
|
|
|
Equity
holders of the parent
|
459
|
344
|
|
Non-controlling
interest
|
–
|
–
|
|
|
_____
|
_____
|
|
|
459
|
344
|
|
|
_____
|
_____
|
|
|
¯¯¯¯
|
¯¯¯¯
|
INTERCONTINENTAL
HOTELS GROUP PLC
GROUP
STATEMENT OF CHANGES IN EQUITY
For
the six months ended 30 June 2026
|
|
Six months ended 30 June 2026
|
|
||||
|
|
|
|
|
|
|
|
|
|
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non- controlling
interest
|
Total
equity
|
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
|
|
At
beginning of the period
|
145
|
(2,584)
|
(302)
|
5
|
(2,736)
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the period
|
–
|
34
|
425
|
–
|
459
|
|
|
Repurchase
of shares, including taxes and transaction costs
|
(1)
|
1
|
(553)
|
–
|
(553)
|
|
|
Transfer
of treasury shares to employee share trusts
|
–
|
(2)
|
2
|
–
|
–
|
|
|
Release
of own shares by employee share trusts
|
–
|
49
|
(49)
|
–
|
–
|
|
|
Equity-settled
share-based cost
|
–
|
–
|
38
|
–
|
38
|
|
|
Tax
related to share schemes
|
–
|
–
|
8
|
–
|
8
|
|
|
Equity
dividends paid
|
–
|
–
|
(189)
|
(1)
|
(190)
|
|
|
Exchange
and other adjustments
|
(2)
|
2
|
–
|
–
|
–
|
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
At end of the period
|
142
|
(2,500)
|
(620)
|
4
|
(2,974)
|
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
¯¯¯¯
|
¯¯¯¯
|
¯¯¯¯
|
|
|
|
Six months ended 30 June 2025
|
|
||||
|
|
|
|
|
|
|
|
|
|
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non-controlling interest
|
Total
equity
|
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
|
|
At
beginning of the period
|
137
|
(2,483)
|
34
|
4
|
(2,308)
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the period
|
–
|
(125)
|
469
|
–
|
344
|
|
|
Repurchase of shares, including taxes and transaction
costs
|
(1)
|
1
|
(531)
|
–
|
(531)
|
|
|
Transfer of treasury shares to employee share trusts
|
–
|
(1)
|
1
|
–
|
–
|
|
|
Release of own shares by employee share trusts
|
–
|
52
|
(52)
|
–
|
–
|
|
|
Equity-settled share-based cost
|
–
|
–
|
36
|
–
|
36
|
|
|
Tax related to share schemes
|
–
|
–
|
(1)
|
–
|
(1)
|
|
|
Equity dividends paid
|
–
|
–
|
(180)
|
–
|
(180)
|
|
|
Exchange
and other adjustments
|
13
|
(13)
|
–
|
–
|
–
|
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
At end of the period
|
149
|
(2,569)
|
(224)
|
4
|
(2,640)
|
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
¯¯¯¯
|
¯¯¯¯
|
¯¯¯¯
|
|
*Other
reserves comprise the capital redemption reserve, shares held by
employee share trusts, other reserves, fair value reserve, cash
flow hedge reserves and currency translation reserve.
All
items within total comprehensive income are shown net of
tax.
INTERCONTINENTAL
HOTELS GROUP PLC
GROUP
STATEMENT OF FINANCIAL POSITION
30 June
2026
|
|
2026
|
2025
|
|
|
30 June
|
31 December
|
|
|
|
|
|
|
$m
|
$m
|
|
ASSETS
|
|
|
|
Goodwill
and other intangible assets
|
1,136
|
1,155
|
|
Property,
plant and equipment
|
144
|
148
|
|
Right-of-use
assets
|
250
|
269
|
|
Investment
in associates and joint ventures
|
58
|
55
|
|
Retirement
benefit assets
|
3
|
3
|
|
Other
financial assets
|
236
|
211
|
|
Derivative
financial instruments
|
113
|
120
|
|
Deferred
compensation plan investments
|
337
|
316
|
|
Trade
and other receivables
|
21
|
19
|
|
Deferred
tax assets
|
129
|
146
|
|
Contract
costs
|
112
|
103
|
|
Contract
assets
|
813
|
751
|
|
|
_____
|
_____
|
|
Total non-current assets
|
3,352
|
3,296
|
|
|
_____
|
_____
|
|
Inventories
|
4
|
5
|
|
Trade
and other receivables
|
942
|
833
|
|
Current
tax receivable
|
42
|
27
|
|
Other
financial assets
|
6
|
3
|
|
Cash
and cash equivalents
|
825
|
1,129
|
|
Contract
costs
|
6
|
5
|
|
Contract
assets
|
51
|
47
|
|
|
_____
|
_____
|
|
Total current assets
|
1,876
|
2,049
|
|
|
_____
|
_____
|
|
Total assets
|
5,228
|
5,345
|
|
|
_____
|
_____
|
|
LIABILITIES
|
¯¯¯¯
|
¯¯¯¯
|
|
Loans
and other borrowings
|
(1,046)
|
(478)
|
|
Lease
liabilities
|
(32)
|
(28)
|
|
Derivative
financial instruments
|
(8)
|
–
|
|
Trade
and other payables
|
(769)
|
(676)
|
|
Deferred
revenue
|
(894)
|
(829)
|
|
Provisions
|
(18)
|
(21)
|
|
Insurance
liabilities
|
(15)
|
(16)
|
|
Tax
payable
|
(42)
|
(52)
|
|
|
_____
|
_____
|
|
Total current liabilities
|
(2,824)
|
(2,100)
|
|
|
_____
|
_____
|
|
Loans
and other borrowings
|
(3,101)
|
(3,723)
|
|
Lease
liabilities
|
(362)
|
(378)
|
|
Derivative
financial instruments
|
(10)
|
(12)
|
|
Retirement
benefit obligations
|
(67)
|
(69)
|
|
Deferred
compensation plan liabilities
|
(337)
|
(316)
|
|
Trade
and other payables
|
(67)
|
(69)
|
|
Deferred
revenue
|
(1,364)
|
(1,340)
|
|
Provisions
|
(23)
|
(22)
|
|
Insurance
liabilities
|
(25)
|
(29)
|
|
Deferred
tax liabilities
|
(22)
|
(17)
|
|
Tax
payable
|
–
|
(6)
|
|
|
_____
|
_____
|
|
Total non-current liabilities
|
(5,378)
|
(5,981)
|
|
|
_____
|
_____
|
|
Total liabilities
|
(8,202)
|
(8,081)
|
|
|
_____
|
_____
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
Net liabilities
|
(2,974)
|
(2,736)
|
|
_____
|
_____
|
|
|
EQUITY
|
¯¯¯¯
|
¯¯¯¯
|
|
IHG
shareholders’ equity
|
(2,978)
|
(2,741)
|
|
Non-controlling
interest
|
4
|
5
|
|
|
_____
|
_____
|
|
Total equity
|
(2,974)
|
(2,736)
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
INTERCONTINENTAL
HOTELS GROUP PLC
GROUP
STATEMENT OF CASH FLOWS
For
the six months ended 30 June 2026
|
|
2026
|
2025
|
|
|
6 months ended
|
6 months ended
|
|
|
30 June
|
30 June
|
|
|
$m
|
$m
|
|
|
|
|
|
Profit for the period
|
425
|
469
|
|
Adjustments
reconciling profit for the period to cash flow from operations
(note 9)
|
176
|
74
|
|
|
_____
|
_____
|
|
Cash flow from operations
|
601
|
543
|
|
Interest
paid
|
(92)
|
(67)
|
|
Interest
received
|
17
|
19
|
|
Deferred
and contingent purchase consideration paid (note 12)
|
(6)
|
–
|
|
Tax
paid (note 6)
|
(165)
|
(183)
|
|
|
_____
|
_____
|
|
Net cash from operating activities
|
355
|
312
|
|
|
_____
|
_____
|
|
Cash flow from investing activities
|
|
|
|
Purchase
of property, plant and equipment
|
(10)
|
(11)
|
|
Purchase
of brands
|
–
|
(120)
|
|
Purchase
of other intangible assets
|
(23)
|
(21)
|
|
Investment in associates and joint ventures
|
(3)
|
(5)
|
|
Investment
in other financial assets
|
(27)
|
(3)
|
|
Deferred
and contingent purchase consideration paid (note 12)
|
(14)
|
–
|
|
Repayments
of other financial assets
|
2
|
8
|
|
Finance lease receipts
|
2
|
2
|
|
Other investing cash flows
|
–
|
3
|
|
|
_____
|
_____
|
|
Net cash from investing activities
|
(73)
|
(147)
|
|
|
_____
|
_____
|
|
Cash flow from financing activities
|
|
|
|
Repurchase
of shares, including taxes and transaction costs
|
(375)
|
(425)
|
|
Purchase
of own shares by employee share trusts
|
(5)
|
–
|
|
Dividends
paid to shareholders (note 7)
|
(189)
|
(180)
|
|
Dividend
paid to non-controlling interest
|
(1)
|
–
|
|
Principal
element of lease payments (note 11)
|
(5)
|
(15)
|
|
Other
financing cash flows
|
–
|
6
|
|
|
_____
|
_____
|
|
Net cash from financing activities
|
(575)
|
(614)
|
|
|
_____
|
_____
|
|
Net movement in cash and cash equivalents, net of
overdrafts,
in the period
|
(293)
|
(449)
|
|
Cash
and cash equivalents, net of overdrafts, at beginning of the
period
|
1,126
|
991
|
|
Exchange
rate effects
|
(11)
|
47
|
|
|
_____
|
_____
|
|
Cash and cash equivalents, net of overdrafts, at end of the
period
|
822
|
589
|
|
|
_____
|
_____
|
|
|
¯¯¯¯
|
¯¯¯¯
|
INTERCONTINENTAL
HOTELS GROUP PLC
NOTES
TO THE FINANCIAL STATEMENTS
|
1.
|
Basis of preparation
|
These
condensed interim financial statements have been prepared in
accordance with the Disclosure Guidance and Transparency Rules of
the United Kingdom’s Financial Conduct Authority and
UK-adopted IAS 34 ‘Interim Financial Reporting’. They
have been prepared on a consistent basis using the same accounting
policies and methods of computation set out in the InterContinental
Hotels Group PLC (‘the Group’ or ‘IHG’)
Annual Report and Form 20-F for the year ended 31 December
2025.
Consistent with the
latest Annual Report, foreign exchange gains or losses are
presented on a separate line in the Group income statement and
related notes to the financial statements. The 2025 amount was
previously presented within ‘Financial income' in the Group
income statement and in 'Net financial income/(expenses)' in the
related notes to the Interim Financial Statements.
These
condensed interim financial statements are unaudited and do not
constitute statutory accounts of the Group within the meaning of
Section 435 of the Companies Act 2006. The auditors have carried
out a review of the financial information in accordance with the
guidance contained in ISRE (UK) 2410 ‘Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity’ issued by the Financial Reporting
Council.
Financial
information for the year ended 31 December 2025 has been extracted
from the Group’s published financial statements for that year
which were prepared in accordance with UK-adopted international
accounting standards and with applicable law and regulations and
which have been filed with the Registrar of Companies. The report
of the auditor was unqualified with no reference to matters to
which the auditor drew attention by way of emphasis and no
statement under s498(2) or s498(3) of the Companies Act
2006.
There
are no changes in the Group’s critical judgements, estimates
and assumptions from those disclosed in the 2025 Annual Report and
Form 20-F. The Group will adopt IFRS 18 (Presentation and
Disclosure in Financial Statements) with effect from 1 January
2027. The key impacts of the standard were set out in the 2025
Annual Report and Form 20-F. Work to conclude on the revised
presentation and restated comparative periods will continue for the
remainder of 2026.
Going
concern
The
period to 31 December 2027 has been used to complete the going
concern assessment.
In
adopting the going concern basis for preparing the Group
financial statements, the Directors have considered a ‘Base
Case’ scenario, as prepared by management, which assumes
Global RevPAR in 2026 and 2027 continues to grow in line with
market expectations. The assumptions applied in the Base Case
scenario are consistent with those used for Group planning
purposes, impairment testing and for assessing recoverability of
deferred tax assets.
In
addition, the Directors have reviewed a ‘Severe Downside
Case’ reflecting a severe but plausible scenario, equivalent
to the market conditions experienced during the 2008/2009 global
financial crisis, in which RevPAR declines by 17% for twelve months
before recovering by 5% in the second half of 2027. A
‘Combined Scenario’ has also been considered, modelling
the Severe Downside Case in conjunction with a significant cash
flow impact from a one-off event, such as a cybersecurity
incident.
Principal risks
that could materially affect RevPAR are captured within the
Severe Downside Case, while other risks with the potential to
cause a substantial one-off impact on cash flow – such as a
cybersecurity event – are addressed in the Combined Scenario.
Climate risks are not considered to have a significant impact
over the period of assessment.
The
Group enters the assessment period with substantial liquidity at
30 June 2026 of $2,298m, comprising $798m of cash and cash
equivalents (net of overdrafts and restricted cash) and $1,500m of
undrawn bank facility. There are two bond maturities in the period
under consideration, £350m in August 2026 and €500m in
May 2027. No new funding is assumed in the period under
review.
Under
the Base Case and Severe Downside Case there is significant
liquidity available to absorb multiple additional risks and
uncertainties. Under the Combined Scenario there is a lower level
of liquidity, however, the Directors also reviewed a
number of actions that could be taken, if required,
to reduce discretionary spend, creating substantial additional
liquidity.
The
Directors reviewed a reverse stress test scenario to determine
what other events could create a scenario which would exhaust the
liquidity in the Combined Scenario. The Directors concluded that it
was very unlikely that a single risk or combination of the
risks considered could create the sustained impact
required.
Having
reviewed these scenarios, the Directors have a reasonable
expectation that the Group has sufficient resources to continue in
operation and meet its liabilities as they fall due until least 31
December 2027. Accordingly, they continue to adopt the going
concern basis in preparing the financial statements.
|
2.
|
Exchange rates
|
|
|
|
|
|
|
|
2026
|
2026
|
2025
|
2025
|
|
|
|
30 June
|
30 June
|
30 June
|
31 December
|
|
|
|
Average
|
Closing
|
Average
|
Closing
|
|
|
$1 equivalent
|
|
|
|
|
|
|
Sterling
|
£0.74
|
£0.76
|
£0.77
|
£0.74
|
|
|
Euro
|
€0.86
|
€0.88
|
€0.92
|
€0.85
|
|
3.
|
Segmental information
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
Six months ended 30 June
|
2026
|
2025
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
Americas
|
584
|
561
|
|
|
EMEAA
|
391
|
368
|
|
|
Greater
China
|
88
|
76
|
|
|
Central
|
192
|
170
|
|
|
|
_____
|
_____
|
|
|
Revenue from reportable segments
|
1,255
|
1,175
|
|
|
System
Fund and reimbursable revenues
|
1,404
|
1,344
|
|
|
|
_____
|
_____
|
|
|
Total revenue
|
2,659
|
2,519
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
|
Profit
|
|
|
|
|
Six months ended 30 June
|
2026
|
2025
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
Americas
|
442
|
415
|
|
|
EMEAA
|
141
|
128
|
|
|
Greater
China
|
55
|
44
|
|
|
Central
|
27
|
17
|
|
|
|
_____
|
_____
|
|
|
Operating profit from reportable segments
|
665
|
604
|
|
|
System
Fund and reimbursable result
|
9
|
31
|
|
|
Operating
exceptional items (note 5)
|
(3)
|
(12)
|
|
|
|
_____
|
_____
|
|
|
Operating profit
|
671
|
623
|
|
|
Net
financial expenses
|
(86)
|
(66)
|
|
|
Foreign
exchange (losses)/gains
|
(7)
|
79
|
|
|
Remeasurement
of contingent purchase consideration
|
–
|
(3)
|
|
|
|
_____
|
_____
|
|
|
Profit before tax
|
578
|
633
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
4.
|
Revenue
|
|
|
|
|
|
|
|
Six months ended 30 June 2026
|
|
|
|
|
|
|
|
|
Americas
|
EMEAA
|
Greater China
|
Central
|
Group
|
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
|
|
Franchise
and base management fees
|
486
|
152
|
69
|
–
|
707
|
|
|
Incentive
management fees
|
7
|
60
|
19
|
–
|
86
|
|
|
Central
revenue
|
–
|
–
|
–
|
178
|
178
|
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
Revenue
from fee business
|
493
|
212
|
88
|
178
|
971
|
|
|
|
|
|
|
|
|
|
|
Revenue
from owned & leased hotels
|
91
|
179
|
–
|
–
|
270
|
|
|
Revenue
from insurance activities
|
–
|
–
|
–
|
14
|
14
|
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
|
584
|
391
|
88
|
192
|
1,255
|
|
|
|
|
|
|
|
|
|
|
System
Fund revenues
|
|
|
|
|
891
|
|
|
Reimbursable
revenues
|
|
|
|
|
513
|
|
|
|
|
|
|
|
_____
|
|
|
Total revenue
|
|
|
|
|
2,659
|
|
|
|
|
|
|
|
_____
|
|
|
|
|
|
|
|
¯¯¯¯
|
|
|
Six months ended 30 June 2025
|
|
|
|
|
|
|
|
|
Americas
|
EMEAA
|
Greater China
|
Central
|
Group
|
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
|
|
|
Franchise
and base management fees
|
468
|
137
|
60
|
–
|
665
|
|
|
Incentive
management fees
|
7
|
62
|
16
|
–
|
85
|
|
|
Central
revenue
|
–
|
–
|
–
|
158
|
158
|
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
Revenue
from fee business
|
475
|
199
|
76
|
158
|
908
|
|
|
|
|
|
|
|
|
|
|
Revenue
from owned & leased hotels
|
86
|
169
|
–
|
–
|
255
|
|
|
Revenue
from insurance activities
|
–
|
–
|
–
|
12
|
12
|
|
|
|
_____
|
_____
|
_____
|
_____
|
_____
|
|
|
|
561
|
368
|
76
|
170
|
1,175
|
|
|
|
|
|
|
|
|
|
|
System
Fund revenues
|
|
|
|
|
832
|
|
|
Reimbursable
revenues
|
|
|
|
|
512
|
|
|
|
|
|
|
|
_____
|
|
|
Total revenue
|
|
|
|
|
2,519
|
|
|
|
|
|
|
|
_____
|
|
|
|
|
|
|
|
¯¯¯¯
|
|
5.
|
Operating exceptional items
|
|
|
|
|
Six months ended 30 June
|
2026
|
2025
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
Global efficiency programme
|
(3)
|
(3)
|
|
|
Commercial litigation and disputes
|
–
|
(9)
|
|
|
|
_____
|
_____
|
|
|
Operating exceptional items
|
(3)
|
(12)
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
|
Operating
exceptional items analysed as:
|
|
|
|
|
Americas
|
(1)
|
(1)
|
|
|
EMEAA
|
(1)
|
(10)
|
|
|
Central
|
(1)
|
(1)
|
|
|
|
_____
|
_____
|
|
|
|
(3)
|
(12)
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
Global
efficiency programme
Comprises costs
incurred in the ongoing delivery of a global efficiency programme,
designed to achieve incremental cost base efficiencies and
effectiveness. The costs, included within 'Cost of sales and
administrative expenses' in the Group income statement, are
presented as exceptional because they relate to a comprehensive
programme and therefore do not reflect normal, ongoing costs of the
business. An additional $3m was charged to the System Fund for the
period to 30 June 2026 (2025: $4m). Further exceptional costs
are expected to be incurred to complete the programme in the second
half of 2026.
Commercial
litigation and disputes
From
time to time, the Group is subject to legal proceedings, the
ultimate outcome of each being always subject to many uncertainties
inherent in litigation. The 2025 charge related to the EMEAA region
and included legal costs. The costs, included within ‘Cost of
sales and administrative expenses’ in the Group income
statement, were presented as exceptional reflecting the quantum of
the costs and nature of the disputes.
|
6.
|
Tax
|
|
|
|
|
|
|
Six months ended 30 June
|
2026
|
|
2025
|
|
|
|
|
$m
|
|
$m
|
|
|
|
|
|
|
|
|
|
|
Current tax
|
147
|
|
154
|
|
|
|
Deferred tax
|
6
|
|
10
|
|
|
|
|
_____
|
|
_____
|
|
|
|
Tax charge
|
153
|
|
164
|
|
|
|
|
_____
|
|
_____
|
|
|
|
Further analysed as:
|
¯¯¯¯
|
|
¯¯¯¯
|
|
|
|
UK
tax
|
16
|
|
24
|
|
|
|
Foreign
tax
|
137
|
|
140
|
|
|
|
|
_____
|
|
_____
|
|
|
|
|
153
|
|
164
|
|
|
|
|
_____
|
|
_____
|
|
|
|
|
¯¯¯¯
|
|
¯¯¯¯
|
|
Tax has
been calculated by first applying a blended effective tax rate of
26% (2025: 26%) to the Group’s profits excluding those in
respect of the System Fund, exceptional items, foreign exchange
gains and losses and movements in contingent consideration. Added
to this are any taxes arising in respect of the actual results of
the System Fund, exceptional items, foreign exchange gains and
losses and movements in contingent consideration.
The
blended effective rate applied to the Group’s profits
represents the weighting of the annual effective tax rates of the
Group’s key territories using corporate income tax rates and
laws substantively enacted at 30 June 2026 to provide the best
estimate for the full financial year.
The tax
charge includes the following exceptional items:
|
Tax on
operating exceptional items
|
(1)
|
|
(3)
|
|
|
Exceptional tax
charge
|
–
|
|
21
|
|
|
|
_____
|
|
_____
|
|
|
Tax
exceptional items
|
(1)
|
|
18
|
|
|
|
_____
|
|
_____
|
|
|
|
¯¯¯¯
|
|
¯¯¯¯
|
|
Tax
on operating exceptional items
Comprises the tax
effects of the operating exceptional items in note 5.
Exceptional
tax
In
2025, the exceptional tax charge represented a $21m deferred tax
charge following the completion of an intra-group restructuring
transaction, which otherwise has had no impact on the consolidated
financial statements. This was presented as exceptional due to its
size and non-recurring nature.
Tax
paid
Total
tax paid (net of refunds) was $165m (2025: $183m).
Deferred
tax
The
deferred tax asset of $129m (31 December 2025: $146m)
comprises $80m (31 December 2025: $92m) in the UK and $49m
(31 December 2025: $54m) in respect of other territories. The
deferred tax asset has been recognised based upon long-range
forecasts which are consistent with those used in the going concern
assessment.
|
7.
|
Dividends and shareholder returns
|
|
|
|
|
|
|
Six months ended 30 June
|
2026
|
2025
|
||
|
|
cents per share
|
$m
|
cents per share
|
$m
|
|
|
|
|
|
|
|
|
|
|
Paid
during the period
|
125.9
|
189
|
114.4
|
180
|
|
|
|
_____
|
_____
|
_____
|
_____
|
|
|
Declared
for the interim period
|
64.5
|
96
|
58.6
|
90
|
|
|
|
_____
|
_____
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
¯¯¯¯
|
¯¯¯¯
|
Following
completion of the $900m share buyback programme in 2025, in
February 2026 the Board approved a further $950m share buyback
programme to be completed in 2026. The Company's authority to
repurchase shares was renewed by the shareholders at the Annual
General Meeting held on 7 May 2026.
In the
six months ended 30 June 2026, 2.7m shares were repurchased
(and subsequently cancelled) for a total cost of $400m (including
taxes and transaction costs), of which $375m was paid in the
period.
Total
liabilities of $178m are recognised within current trade and other
payables for the 2026 share buyback programme, comprising $25m for
shares purchased on or before 30 June and $153m reflecting the
unavoidable contractual cost of shares to be repurchased at
30 June 2026.
|
8.
|
Earnings per ordinary share
|
|
|
|
|
Six months ended 30 June
|
2026
|
2025
|
|
|
|
|
|
|
|
Basic earnings per ordinary share
|
|
|
|
|
Profit
available for equity holders ($m)
|
425
|
469
|
|
|
Basic
weighted average number of ordinary shares (millions)
|
150.0
|
156.3
|
|
|
Basic
earnings per ordinary share (cents)
|
283.3
|
300.1
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
|
Diluted earnings per ordinary share
|
|
|
|
|
Profit
available for equity holders ($m)
|
425
|
469
|
|
|
Diluted
weighted average number of ordinary shares (millions)
|
151.1
|
157.8
|
|
|
Diluted
earnings per ordinary share (cents)
|
281.3
|
297.2
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
|
Diluted
weighted average number of ordinary shares is calculated
as:
|
|
|
|
|
|
2026
|
2025
|
|
|
|
millions
|
millions
|
|
|
|
|
|
|
|
Basic
weighted average number of ordinary shares
|
150.0
|
156.3
|
|
|
Dilutive
potential ordinary shares
|
1.1
|
1.5
|
|
|
|
_____
|
_____
|
|
|
|
151.1
|
157.8
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
9.
|
Reconciliation of profit for the period to cash flow from
operations
|
|
|
|
|
Six months ended 30 June
|
2026
|
2025
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
Profit for the period
|
425
|
469
|
|
|
Adjustments for:
|
|
|
|
|
|
|
|
|
|
Net
financial expenses
|
86
|
66
|
|
|
Foreign
exchange losses/(gains)
|
7
|
(79)
|
|
|
Remeasurement
of contingent purchase consideration
|
–
|
3
|
|
|
Tax
charge
|
153
|
164
|
|
|
|
|
|
|
|
Operating profit adjustments:
|
|
|
|
|
Impairment loss on
financial assets
|
11
|
14
|
|
|
Operating
exceptional items
|
3
|
12
|
|
|
Depreciation
and amortisation
|
32
|
33
|
|
|
|
_____
|
_____
|
|
|
|
46
|
59
|
|
|
|
|
|
|
|
Contract
assets deduction in revenue
|
28
|
23
|
|
|
Share-based
payments cost
|
28
|
24
|
|
|
Share
of profits of associates and joint ventures
|
(3)
|
(3)
|
|
|
|
_____
|
_____
|
|
|
|
53
|
44
|
|
|
|
|
|
|
|
System Fund adjustments:
|
|
|
|
|
Depreciation
and amortisation
|
33
|
40
|
|
|
Impairment loss on
financial assets
|
10
|
12
|
|
|
Share-based
payments cost
|
14
|
13
|
|
|
Share
of losses of associates
|
–
|
1
|
|
|
|
_____
|
_____
|
|
|
|
57
|
66
|
|
|
|
|
|
|
|
Working capital and other adjustments:
|
|
|
|
|
Increase in
deferred revenue
|
85
|
113
|
|
|
Changes
in working capital
|
(199)
|
(259)
|
|
|
Other
net adjustments
|
(7)
|
(12)
|
|
|
|
_____
|
_____
|
|
|
|
(121)
|
(158)
|
|
|
|
|
|
|
|
Cash flows relating to operating exceptional items
|
(7)
|
(4)
|
|
|
Contract acquisition costs, net of repayments
|
(98)
|
(87)
|
|
|
|
_____
|
_____
|
|
|
Total adjustments
|
176
|
74
|
|
|
|
_____
|
_____
|
|
|
Cash flow from operations
|
601
|
543
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
Dividends received
from associates and joint ventures of $9m (2025: $2m) are included
within 'Other net adjustments'.
|
10.
|
Net debt
|
|
|
|
|
|
2026
|
2025
|
|
|
|
30 June
|
31 December
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
825
|
1,129
|
|
|
Loans and other borrowings – current
|
(1,046)
|
(478)
|
|
|
Loans and other borrowings – non-current
|
(3,101)
|
(3,723)
|
|
|
Lease liabilities – current
|
(32)
|
(28)
|
|
|
Lease liabilities – non-current
|
(362)
|
(378)
|
|
|
Principal amounts payable on maturity of derivative financial
instruments
|
53
|
145
|
|
|
|
_____
|
_____
|
|
|
Net debt*
|
(3,663)
|
(3,333)
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
|
*
See ‘Key performance measures
and non-GAAP measures’.
|
||
|
|
|
|
|
In the
Group statement of cash flows, cash and cash equivalents is
presented net of $3m bank overdrafts (31 December 2025: $3m).
Cash and cash equivalents includes $24m (31 December 2025:
$27m) with restrictions on use.
Revolving
Credit Facility (RCF)
The
revolving credit facility matures in 2030. A variable rate of
interest is payable on amounts drawn. There were no amounts drawn
as at 30 June 2026 nor 31 December 2025. There were no
amounts drawn during the period (maximum amount drawn in year to
31 December 2025: $75m).
|
11.
|
Movement in net debt
|
|
|
|
|
Six months ended 30 June
|
2026
|
2025
|
|
|
|
$m
|
$m
|
|
|
|
|
|
|
|
Net
decrease in cash and cash equivalents, net of
overdrafts
|
(293)
|
(449)
|
|
|
Add back financing cash flows in respect of other components of net
debt:
|
|
|
|
|
|
|
|
|
|
Principal
element of lease payments
|
5
|
15
|
|
|
|
_____
|
_____
|
|
|
Increase in net debt arising from cash flows
|
(288)
|
(434)
|
|
|
|
|
|
|
|
Other movements:
|
|
|
|
|
Lease
liabilities
|
5
|
(4)
|
|
|
Increase in accrued
interest
|
(55)
|
(43)
|
|
|
Exchange
adjustments
|
11
|
(96)
|
|
|
Other
adjustments
|
(3)
|
(2)
|
|
|
|
_____
|
_____
|
|
|
|
(42)
|
(145)
|
|
|
|
_____
|
_____
|
|
|
Increase in net debt
|
(330)
|
(579)
|
|
|
|
|
|
|
|
Net
debt at beginning of the period
|
(3,333)
|
(2,782)
|
|
|
|
_____
|
_____
|
|
|
Net debt at end of the period
|
(3,663)
|
(3,361)
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
|
12.
|
Financial instruments
|
||||||
|
|
Accounting classification and fair value hierarchy
|
||||||
|
|
|
Hierarchy of fair value measurement
|
|
Fair value
|
Amortised cost
|
Not categorised as a financial instrument
|
Total
|
|
|
|
|
$m
|
$m
|
$m
|
$m
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
Other financial assets
|
1,3
|
|
163
|
79
|
–
|
242
|
|
|
Cash and cash equivalents
|
1
|
|
280
|
545
|
–
|
825
|
|
|
Derivative financial instruments
|
2
|
|
113
|
–
|
–
|
113
|
|
|
Deferred compensation plan investments
|
1
|
|
337
|
–
|
–
|
337
|
|
|
Trade and other receivables
|
–
|
|
–
|
866
|
97
|
963
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
Derivative financial instruments
|
2
|
|
(18)
|
–
|
–
|
(18)
|
|
|
Deferred compensation plan liabilities
|
1
|
|
(337)
|
–
|
–
|
(337)
|
|
|
Loans and other borrowings
|
–
|
|
–
|
(4,147)
|
–
|
(4,147)
|
|
|
Trade and other payables
|
3
|
|
(39)
|
(742)
|
(55)
|
(836)
|
Other
financial assets measured at fair value comprise $38m categorised
as level 1 and $125m as level 3.
There
were no transfers between Level 1, Level 2 and Level 3 fair value
measurements during the period.
|
|
Level 3 reconciliation
|
||
|
|
|
|
|
|
|
|
Other financial assets
|
Trade and other payables
|
|
|
|
$m
|
$m
|
|
|
At
1 January 2026
|
125
|
(79)
|
|
|
Unrealised changes in fair value
|
–
|
1
|
|
|
Reclassifications to amortised cost
|
–
|
19
|
|
|
Payments and disposals
|
–
|
20
|
|
|
|
_____
|
_____
|
|
|
At 30 June 2026
|
125
|
(39)
|
|
|
|
_____
|
_____
|
|
|
|
¯¯¯¯
|
¯¯¯¯
|
Valuation
techniques
The
valuation techniques and types of input applied by the Group for
the six months ended 30 June 2026 are consistent with those
disclosed within the 2025 Annual Report and Form 20-F. Changes in
reported amounts are primarily caused by payments made and
received, changes to contractual agreements, changes in market
inputs (such as discount rates) and the impact of the time value of
money.
Other
financial assets - Equity securities and loan assets
Equity
securities measured at fair value and categorised as level 3 total
$89m (31 December 2025: $91m), of which $85m are classified as
fair value through other comprehensive income and $4m as fair value
through profit or loss. The significant unobservable inputs used to
determine the fair value of unquoted equity securities are RevPAR
growth, pre-tax discount rate (which ranged from 6.4% to 10.0%) and
a non-marketability factor (which ranged from 20.0% to 30.0%).
There is no material sensitivity arising from changes in
assumptions.
Loan
assets totalling $36m (31 December 2025: $34m) do not meet the
criteria to be measured at amortised cost and are therefore
measured at fair value through profit or loss. The amount
recognised is the discounted value of the total expected amount
receivable, discounted using unobservable interest rates for loans
with similar term and risk. There is no material sensitivity
arising from changes in interest rates.
Trade
and other payables - Contingent purchase consideration
Regent
Trade
and other payables classified as fair value through profit and loss
relates to contingent purchase consideration on business
combinations. It comprises the present value of the expected
amounts payable on exercise of put and call options over the
remaining shareholding in Regent. During the period, the Group
exercised an option to acquire a further 25% of the shareholding
for $39m. $20m was paid in the first half of 2026 and the remaining
$19m has been reclassified to deferred consideration, included
within current trade and other payables measured at amortised cost.
Of the amount paid, $14m is reported within cash flow from
investing activities in the Group statement of cash flows, being
the original estimate of fair value on acquisition. $6m is reported
within cash flows from operating activities, being the increase in
the liability since acquisition. The closing contingent
consideration balance is the fair value of the remaining 24%
shareholding, which is expected to be acquired in 2028 for $42m.
The fair value is not materially sensitive to reasonable changes in
assumptions.
Ruby
Trade
and other payables measured at amortised cost includes contingent
purchase consideration on asset acquisitions of $20m
(31 December 2025: $19m). On 17 February 2025, the Group
acquired the Ruby brand and related intellectual property at a cost
of €129m ($136m), including the fair value of contingent
purchase consideration at the acquisition date of €15m
($16m). The contingent purchase consideration comprises the present
value of amounts expected to be payable, contingent on the number
of Ruby branded rooms operated by the seller at the end of 2029 and
2034. The range of possible undiscounted payments is nil to
€181m ($206m). The liability is subject to remeasurement at
each reporting date, discounted at the rate determined on
acquisition. The significant unobservable input is the expected
number of rooms operated by the seller at 31 December 2029 and
2034. If the expected room count were to increase or decrease by
25%, the amount of contingent consideration at 30 June 2026
would increase/decrease by $27m and $20m,
respectively.
Changes
in the value of contingent purchase consideration are recognised on
the face of the Group income statement below operating
profit.
Fair
value of other financial instruments
The
Group also holds a number of financial instruments which are not
measured at fair value in the Group statement of financial
position. With the exception of the Group’s bonds, their fair
values are not materially different to their carrying amounts,
since the interest receivable or payable is either close to current
market rates or the instruments are short-term in nature. The
Group’s bonds, which are classified as Level 1 fair value
measurements, have a carrying value of $4,144m and a fair value of
$4,065m.
The
Group did not measure any material financial assets or liabilities
at fair value on a non-recurring basis during the period to
30 June 2026.
|
13.
|
Contingencies and guarantees
|
From
time to time, the Group is subject to legal proceedings, the
ultimate outcome of each being always subject to many uncertainties
inherent in litigation. These legal claims and proceedings are in
various stages and include disputes related to specific hotels
where the potential materiality is not yet known; such proceedings,
either individually or in the aggregate, have not in the recent
past and are not likely to have a significant effect on the
Group’s financial position or profitability.
The
Group has issued financial guarantee contracts of up to $26m
(31 December 2025: $26m). The carrying amount of these
guarantees was $nil in all periods presented.
INDEPENDENT REVIEW REPORT TO INTERCONTINENTAL HOTELS GROUP
PLC
REPORT ON THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
Our conclusion
We have
reviewed InterContinental Hotels Group PLC’s condensed
consolidated interim financial statements (the “interim
financial statements”) in the Half Year Results of
InterContinental Hotels Group PLC for the 6 month period ended 30
June 2026 (the “period”).
Based
on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in
all material respects, in accordance with UK adopted International
Accounting Standard 34, 'Interim Financial Reporting' and the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom’s Financial Conduct Authority.
The
interim financial statements comprise:
▪
the group statement
of financial position as at 30 June 2026;
▪
the group income
statement and the group statement of comprehensive income for the
period then ended;
▪
the group statement
of cash flows for the period then ended;
▪
the group statement
of changes in equity for the period then ended; and
▪
the explanatory
notes to the interim financial statements.
The
interim financial statements included in the Half Year Results of
InterContinental Hotels Group PLC have been prepared in accordance
with UK adopted International Accounting Standard 34, 'Interim
Financial Reporting' and the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom’s Financial Conduct
Authority.
Basis for conclusion
We
conducted our review in accordance with International Standard on
Review Engagements (UK) 2410, ‘Review of Interim Financial
Information Performed by the Independent Auditor of the
Entity’ issued by the Financial Reporting Council for use in
the United Kingdom (“ISRE (UK) 2410”). A review of
interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting
matters, and applying analytical and other review
procedures.
A
review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK) and,
consequently, does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit
opinion.
We have
read the other information contained in the Half Year Results and
considered whether it contains any apparent misstatements or
material inconsistencies with the information in the interim
financial statements.
Conclusions relating to going concern
Based
on our review procedures, which are less extensive than those
performed in an audit as described in the Basis for conclusion
section of this report, nothing has come to our attention to
suggest that the directors have inappropriately adopted the going
concern basis of accounting or that the directors have identified
material uncertainties relating to going concern that are not
appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However,
future events or conditions may cause the group to cease to
continue as a going concern.
RESPONSIBILITIES FOR THE INTERIM FINANCIAL STATEMENTS AND THE
REVIEW
Our responsibilities and those of the directors
The
Half Year Results, including the interim financial statements, is
the responsibility of, and has been approved by the directors. The
directors are responsible for preparing the Half Year Results in
accordance with the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom’s Financial Conduct
Authority. In preparing the Half Year Results, including the
interim financial statements, the directors are responsible for
assessing the group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors
either intend to liquidate the group or to cease operations, or
have no realistic alternative but to do so.
Our
responsibility is to express a conclusion on the interim financial
statements in the Half Year Results based on our review. Our
conclusion, including our Conclusions relating to going concern, is
based on procedures that are less extensive than audit procedures,
as described in the Basis for conclusion paragraph of this
report.
Use of this report
This
report, including the conclusion, has been prepared for and only
for the company for the purpose of complying with the Disclosure
Guidance and Transparency Rules sourcebook of the United
Kingdom’s Financial Conduct Authority and for no other
purpose. We do not, in giving this conclusion, accept or assume
responsibility for any other purpose or to any other person to whom
this report is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing.
PricewaterhouseCoopers
LLP
Chartered
Accountants
Birmingham
10
August 2026
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
|
|
|
InterContinental Hotels Group PLC
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
By:
|
/s/ C.
Bates
|
|
|
Name:
|
C.
BATES
|
|
|
Title:
|
SENIOR
ASSISTANT COMPANY SECRETARY
|
|
|
|
|
|
|
Date:
|
11
August 2026
|
|
|
|
|
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