InterContinental Hotels Group (IHG) Investor presentation summary

Industry overview and growth drivers

• Global hotel industry revenue grew at a 4.4% CAGR from 2000 to 2025, outpacing global GDP growth and showing resilience during downturns.

• Hotel room nights consumed are forecast to grow at a 3.6% CAGR globally through 2035, with China and the rest of the world leading growth.

• Travel & tourism spending is expected to rise at a 6.0% CAGR globally through 2035, with China projected at 9.5%.

Business model and strategic priorities

• Operates an asset-light, fee-based model with 7,000+ hotels open and 2,300+ in the pipeline, representing 33% rooms growth.

• Focuses on growth, beloved brands, a leading commercial engine, and care for people, communities, and the planet.

• Portfolio includes 21 brands across all chain scales, with 11 brands added since 2015 through launches, acquisitions, and partnerships.

Financial performance and growth algorithm

• FY 2025 EBIT rose 13% to $1,265m, adjusted EPS up 16%, and $1.1bn+ returned to shareholders.

• Global RevPAR increased 1.5%, system size grew 4.7% net YOY to 1,026k rooms, and pipeline reached 340k rooms.

• Fee margin expanded by 3.6 percentage points to 64.8%, with strong cash conversion at 115% of adjusted earnings.

• Capital allocation prioritizes business investment, sustainable dividends, and returning surplus funds, with a $950m buyback announced for 2026.