IHG Posts Record Hotel Openings, Higher Earnings and Fresh $950m Buyback After Solid 2025

InterContinental Hotels Group (LSE:IHG) delivered a strong set of results for 2025, with revenue from reportable segments rising 7% and operating profit from those segments advancing 13%. Adjusted earnings per share increased 16%, supported by a 3.6 percentage point uplift in fee margin. Global RevPAR edged up 1.5%, while total gross revenue grew 5%. Net cash generated from operating activities reached $898 million and adjusted free cash flow totalled $893 million. Net debt rose to $3.3 billion, largely reflecting more than $1.1 billion returned to shareholders during the year.

Expansion momentum accelerated, with a record 443 hotels — representing 65,100 rooms — opened during the period. The group also signed 694 new hotels, bringing its global estate to roughly 1,026,000 rooms. The development pipeline increased to 340,000 rooms, equivalent to around one-third of the existing system size. Strategically, IHG enhanced its premium positioning through the introduction of the Noted Collection brand and the integration of the acquired Ruby urban lifestyle platform.

Reflecting confidence in long-term demand trends and cash generation, the company announced a new $950 million share repurchase programme alongside a 10% increase in its dividend. While operational and financial performance remain key strengths — particularly RevPAR progression and capital returns — leverage levels and negative equity present balance sheet considerations. Technical indicators suggest positive momentum in the shares, though valuation metrics imply the stock may be pricing in much of the upside.

More about InterContinental Hotels Group

IHG Hotels & Resorts operates more than one million rooms across 6,963 properties in over 100 countries, with a pipeline of approximately 2,300 hotels under development. Its 20-brand portfolio spans Luxury & Lifestyle, Premium, Essentials and Suites segments, supported by the IHG One Rewards loyalty programme, which counts more than 160 million members globally.

The group’s brands include InterContinental, Holiday Inn, Crowne Plaza, Kimpton, voco and Ruby, among others. IHG operates an asset-light, fee-driven model focused on franchising and management contracts, generating diversified revenue streams across geographies and customer segments.