IHG Reports Growth in Earnings, Openings and Shareholder Returns in 2025
IHG Hotels & Resorts has reported its full-year results for the year ended 31 December 2025, outlining growth in operating profit, earnings, system expansion, and shareholder returns, alongside continued investment in its brand portfolio and platform.
For 2025, operating profit from reportable segments rose 13% to $1,265 million, while adjusted earnings per share increased 16% to 501.3 cents. Revenue from reportable segments grew 7% to $2.47 billion, with revenue from the fee business also up 7% to $1.90 billion. Fee margin improved to 64.8%, reflecting operating leverage and growth in ancillary fee streams.
On an IFRS basis, total revenue increased 5% to $5.19 billion, and operating profit rose 15% to $1.20 billion. Basic earnings per share increased 26% to 490.9 cents. The total dividend for the year was 184.5 cents per share, up 10% year over year.
Global RevPAR increased 1.5% during the year, with growth in the Americas and EMEAA regions offsetting a decline in Greater China. Average daily rate rose 0.8%, while occupancy increased by 0.5 percentage points. Total gross revenue across the system reached $35.2 billion, up 5%.
IHG continued to expand its system and pipeline during the year. Gross system growth was 6.6%, with net system growth of 4.7% after adjusting for the removal of rooms previously affiliated with The Venetian Resort Las Vegas. The group opened 65,100 rooms across 443 hotels and ended the year with a global estate of 6,963 hotels comprising more than 1.02 million rooms. During 2025, IHG signed 102,100 rooms across 694 hotels, excluding the impact of the Ruby acquisition and prior-year NOVUM signings. The global pipeline stood at 340,000 rooms across 2,292 hotels, representing around one-third of the current system size.
Net cash from operating activities totalled $898 million, while adjusted free cash flow reached $893 million, supported by higher profits and lower capital outflows. Net debt increased to $3.33 billion, reflecting more than $1.1 billion returned to shareholders through dividends and share buybacks, acquisition spending and foreign exchange movements. Adjusted EBITDA rose 12% to $1.33 billion, with a net debt to adjusted EBITDA ratio of 2.5 times.
During the year, IHG returned $900 million through share buybacks and paid $270 million in dividends. A final dividend of 125.9 cents per share has been proposed, bringing the total dividend for the year to 184.5 cents. The company also announced a new $950 million share buyback programme, with total shareholder returns in 2026 expected to exceed $1.2 billion.
Strategically, IHG continued to focus on brand growth, geographic expansion, technology investment and ancillary fee development. In 2025, the group acquired the Ruby brand and, in 2026, launched its new premium collection brand, Noted Collection, as part of efforts to broaden its portfolio and support future growth.
Commenting on the results, Elie Maalouf, Chief Executive Officer of IHG Hotels & Resorts, said the company made progress against its 2025 strategy, supported by brand expansion, system growth, and capital returns, while continuing to invest in its enterprise platform and portfolio to support longer-term performance.
Leave a comment