InterContinental Hotels Group (NYSE:IHG) H2 2025 Earnings call February 17, 2026 03:30 AM ET Company ParticipantsElie Maalouf - CEOMichael Glover - CFOConference Call ParticipantsAlex Brignall - AnalystAndré Juillard - AnalystJaafar Mestari - AnalystJaina Mistry - AnalystJamie Rollo - AnalystKate Zhao - AnalystRicardo Benavides - AnalystRichard Clarke - AnalystOperatorWe will now begin the Q&A session. If you are listening by phone and would like to ask a question, please press star followed by one on your ...

InterContinental Hotels Group (NYSE:IHG) H2 2025 Earnings call February 17, 2026 03:30 AM ET Company ParticipantsElie Maalouf - CEOMichael Glover - CFOConference Call ParticipantsAlex Brignall - AnalystAndré Juillard - AnalystJaafar Mestari - AnalystJaina Mistry - AnalystJamie Rollo - AnalystKate Zhao - AnalystRicardo Benavides - AnalystRichard Clarke - AnalystOperatorWe will now begin the Q&A session. If you are listening by phone and would like to ask a question, please press star followed by one on your ...

InterContinental Hotels Group (NYSE:IHG) H2 2025 Earnings call February 17, 2026 03:30 AM ET Speaker8We will now begin the Q&A session. If you are listening by phone and would like to ask a question, please press star followed by one on your telephone keypad to raise your hand and join the queue. To withdraw your question, press the star one again. When called upon to ask your questions, please use your device handset and ensure you are not on mute. Again, that is star one to raise your hand, and I will now ...

Financial Performance and Key Metrics - The company reported a 1.5% growth in RevPAR, driven by rate and occupancy gains, reflecting a strong global footprint and diversified demand drivers [3][4] - Gross system growth was 6.6%, and net system growth was 4.7%, marking the fourth consecutive year of accelerating growth [4] - The fee margin increased by 360 basis points to 64.8%, contributing to a 13% increase in EBIT and a 16% growth in adjusted EPS [4][8][19] - Adjusted Free Cash Flow rose to $893 million, a year-on-year increase of $238 million, with Free Cash Conversion at 115% of adjusted earnings [20] Business Line Performance - Revenue from the fee business was $2.5 billion, with EBIT growing 7% and 13% respectively [8] - The Americas RevPAR grew 0.3% for the year, while EMEA RevPAR increased by 4.6% [10][11] - In Greater China, RevPAR declined by 1.6%, with a notable recovery in Q4 [11][12] Market Performance - The U.S. market saw a gross opening of 156 hotels, with a pipeline of 233 hotels, indicating strong owner confidence [41] - In EMEA, particularly Germany, the company doubled its presence to 190 hotels and signed 25 more into the pipeline [43] - The company celebrated its 50th anniversary in Greater China, reaching 882 open hotels and a pipeline of 582 hotels [42] Company Strategy and Industry Competition - The company launched a new premium collection brand, Noted Collection, and acquired Ruby to strengthen its portfolio in the premium segment [5][30] - The brand portfolio has expanded from 10 to 21 brands over the past decade, capturing a wider customer mix and enhancing loyalty program value [29] - The company aims to achieve fee revenue growth of high single digits while controlling overhead growth to a low single-digit increase per year [19] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in continuing to deliver on the growth algorithm, targeting 12%-15% adjusted EPS growth as a compound annual growth rate [60] - The company highlighted the strength of its business model and the resilience demonstrated despite turbulent trading conditions [5][59] - Management noted that the overall margin achievement in 2025 was unusually strong, driven by ancillary fee streams and cost actions [19] Other Important Information - The company announced a new $950 million share buyback program, expected to return over $1.2 billion to shareholders in 2026 [4][27] - The loyalty program, IHG One Rewards, grew to over 160 million members, with loyalty penetration now at approximately 66% of all room nights booked [54][55] - The company is leveraging AI and technology to enhance guest experiences and operational efficiencies [49][51] Q&A Session Summary Question: What are the growth prospects for the new Noted Collection brand? - The company expects Noted Collection to scale rapidly, with initial discussions already underway with multiple owners [36] Question: How is the company managing costs in the current environment? - The company has maintained a disciplined approach to cost management, achieving sustainable savings through process redesign and technology [15][19] Question: What is the outlook for the Greater China market? - Management remains confident in the long-term structural growth drivers in Greater China, with a significant under-penetration of hotels per capita [42]

Financial Data and Key Metrics Changes - RevPAR grew by 1.5%, driven by rate and occupancy gains, reflecting the breadth of the global footprint and diversification of demand drivers [3] - Gross system growth was 6.6%, and net system growth was 4.7%, marking the fourth consecutive year of accelerating growth [4] - Adjusted EPS grew by 16%, supported by a $900 million share buyback program [5][9] - Total revenue was $2.5 billion, with EBIT growing by 13% to $1.265 billion [8] Business Line Data and Key Metrics Changes - Fee business revenue and operating profit both increased by 7% and 13% respectively, with fee margin increasing by 360 basis points to 64.8% [8][16] - The company opened a record 443 hotels, adding over 65,000 rooms to the system, with a 10% year-on-year increase in openings [13][29] - The new premium collection brand, Noted Collection, was launched to strengthen the portfolio in the premium segment [5][29] Market Data and Key Metrics Changes - In the Americas, RevPAR grew by 0.3%, with a slight decline in occupancy [10] - EMEA RevPAR grew by 4.6%, with occupancy up 1.6 percentage points and rate up 2.4% [11] - Greater China saw a RevPAR decline of 1.6%, with occupancy slightly up and rate down [11] Company Strategy and Development Direction - The company aims to expand its brand portfolio, having doubled it from 10 to 20 brands over the past decade, with a focus on capturing more guests at various price points [29] - The strategy includes leveraging technology and AI to enhance operational efficiency and guest experience [46][49] - The company is focused on expanding in key growth markets, particularly in the U.S., Europe, and China, with significant growth potential in emerging markets [39][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continuing to deliver on the growth algorithm, targeting high single-digit fee revenue growth and 100-150 basis points of margin expansion annually [6][60] - The company anticipates strong cash flow conversion and sustainable dividend growth, with a commitment to returning capital to shareholders [19][60] Other Important Information - The company plans to return over $1.2 billion to shareholders in 2026 through share buybacks and dividend payments [4][27] - Adjusted free cash flow was $893 million, representing a year-on-year increase of $238 million [19] Q&A Session Summary Question: What are the expectations for future growth in the U.S. market? - Management noted that development momentum in the U.S. continued to pick up, with gross openings growing 11% year-on-year and strong owner confidence in the brand [41] Question: How is the company leveraging technology for operational efficiency? - The company is implementing a new Revenue Management System and enhancing its Guest Reservation System to optimize operations and improve revenue performance for hotel owners [46][48]

Financial Data and Key Metrics Changes - RevPAR grew by 1.5%, driven by rate and occupancy gains, reflecting the breadth of the global footprint and diversification of demand drivers [3][4] - Gross system growth was 6.6%, and net system growth was 4.7%, marking the fourth consecutive year of accelerating growth [4] - Adjusted EPS grew by 16%, supported by a $900 million share buyback program [9][54] - Total revenue was $2.5 billion, with EBIT growing by 13% to $1.265 billion [7][54] Business Line Data and Key Metrics Changes - Fee business revenue and operating profit both increased by 7% and 13% respectively, with fee margin increasing by 360 basis points to 64.8% [7][8] - The company opened a record 443 hotels, taking the total estate to over 6,900 hotels and more than 1 million rooms [3][4] - The pipeline now stands at almost 2,300 hotels, representing 33% future rooms growth [4] Market Data and Key Metrics Changes - In the Americas, RevPAR grew by 0.3%, with a slight decline in occupancy [10] - Outside the U.S., RevPAR grew by 4%, with notable growth in Canada, Mexico, and the Latin America and Caribbean sub-region [10] - In EMEA, RevPAR grew by 4.6%, with occupancy up 1.6 percentage points and rate up 2.4% [11] - Greater China saw a RevPAR decline of 1.6%, with occupancy slightly up [11] Company Strategy and Development Direction - The company launched a new premium collection brand, Noted Collection, to strengthen its portfolio in the premium segment [5][27] - The brand portfolio has doubled from 10 to 20 brands over the past decade, capturing more guests at various price points [27] - The company aims to expand fee margin by 100-150 basis points annually while controlling overhead growth to a low single-digit increase [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continuing to deliver on the growth algorithm, targeting high single-digit fee revenue growth and sustainable dividend growth [54][55] - The company remains well-positioned to capture guests in various markets, with a pipeline of hotels in fast-growing economies [36][42] - Management highlighted the strength of the loyalty program, with membership growing to over 160 million, driving increased revenue [49][50] Other Important Information - The company returned over $1.1 billion to shareholders, with a proposed 10% increase in total dividends [5][25] - Adjusted free cash flow was $893 million, representing a year-on-year increase of $238 million [18] - The company is leveraging technology, including AI, to enhance operational efficiency and guest experience [43][45] Q&A Session Summary Question: What are the growth prospects for the new Noted Collection brand? - Management expects Noted Collection to scale rapidly, with initial discussions already underway with multiple owners [33] Question: How is the company managing costs in the current environment? - The company has maintained a disciplined approach to cost management, achieving sustainable savings through process redesign and technology [15][18] Question: What is the outlook for the Greater China market? - Management remains confident in the long-term growth drivers in Greater China, with significant under-penetration of hotels per capita [39][42]

2025 Full Year Results 17 February 2026 Cautionary note regarding forward-looking statements This presentation may contain projections and forward looking-statements. The words "believe", "expect", "anticipate", "intend" and "plan" and similar expressions identify forward-looking statements. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company's financial position, potential business strategy, potential plans and p ...

Core Insights - IHG Hotels & Resorts announces the U.S. development opportunity for Ruby Hotels, targeting cost- and style-conscious travelers in urban markets [1][2] - Ruby Hotels aims to expand its presence in the U.S. following its successful European operations, with plans for over 120 global hotels in the next decade and more than 250 in the next 20 years [4][5] Company Overview - Ruby Hotels, founded in Germany in 2013, currently has 34 hotels in major European cities and is now entering the U.S. market [2][4] - The brand focuses on a premium urban lifestyle approach, offering standardized guest room designs with high-quality finishes and essential amenities [3][4] Market Strategy - IHG's strategic growth plan for Ruby prioritizes major U.S. urban markets and includes various project types such as new builds, conversions, and adaptive reuse [2][4] - The brand is designed to appeal to individualist travelers seeking character-driven premium stays at affordable prices, while maintaining its unique design and operating model [5] Growth Potential - IHG expects accelerated growth in the "urban micro" segment, which presents opportunities for increased owner and traveler interest in Ruby Hotels [4] - The partnership with IHG provides Ruby owners access to a robust distribution and technology platform, as well as the IHG One Rewards loyalty program [4][5]

Financial Data and Key Metrics Changes - Global RevPAR grew by 1.8%, reflecting the strength of the company's brands and operating model [5] - Adjusted EPS increased by 19%, supported by share buybacks [8][12] - EBIT increased by 13%, driven by margin accretion and positive operating leverage [8][12] Business Line Data and Key Metrics Changes - Fee business revenue increased by 7%, with operating profit up by 14% [10][11] - Fee margin grew by 390 basis points to 64.7% [11][20] - The company added over 31,000 rooms, achieving a gross system growth of 7.7% year over year [6][16] Market Data and Key Metrics Changes - RevPAR in the Americas grew by 1.4%, with occupancy up by 0.1 percentage points [13] - EMEAA RevPAR grew by 4.1%, with occupancy up by 0.8 percentage points [14] - Greater China experienced a RevPAR decline of 3.2%, with occupancy up by 0.3 percentage points [14] Company Strategy and Development Direction - The company aims to continue expanding its brand portfolio, having doubled the number of brands from 10 to 20 over the last decade [29] - Focus on enhancing hotel owner returns and increasing ancillary fee streams [28] - Continued investment in technology to optimize operations and enhance guest engagement [49][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver growth driven by high single-digit fee revenue growth and margin expansion [72] - The company anticipates returning over $1,100,000,000 to shareholders in 2025 [8][72] - Long-term structural growth drivers in Greater China remain strong, supported by technological innovation and a rising middle class [41] Other Important Information - The company declared an interim dividend of 58.6¢, consistent with a 10% growth rate over the past three years [8] - The share buyback program is expected to return over $1,100,000,000 to shareholders, equivalent to just under 6% of the company's market capitalization at the start of the year [25] Q&A Session Summary Question: What are the expectations for future growth in EBITDA and cash generation? - The company expects to maintain leverage within the target range of 2.5 to 3 times net debt to EBITDA, with guidance remaining unchanged from previous communications [27] Question: How is the company addressing cost management? - The company has maintained a disciplined approach to cost management, resulting in a reduction of fee business overheads by 4.5% [20] Question: What is the outlook for the Ruby brand integration? - The second phase of the Ruby brand integration is expected to begin later this year, with plans to expand into new markets [34]

Financial Performance - H1 2025 global RevPAR increased by 1.8%[15], with ADR up by 1.4%[15] and occupancy up by 0.3%pts[15] - Fee margin increased by 3.9%pts to 64.7%[15], with TTM EBITDA reaching $1.259 billion, a 10% increase[15] - Adjusted EPS increased by 19% to 242.5¢[15], and free cash flow reached $302 million[15] - The interim dividend increased by 10% to 58.6¢[15] System Growth and Development - Gross system growth increased by 7.7% YOY, and net system growth increased by 5.4% YOY[15] - A record 31.4k rooms (207 hotels) were opened in H1, a 75% increase YOY[15] - Signings reached 51.2k rooms (324 hotels), a 15% increase YOY[15] - The pipeline consists of 338k rooms (2,276 hotels), representing 34% of the current system size[16] Capital Returns - $423 million (47%) of the $900 million share buyback program has been returned, representing 2.4% of the opening share count[15] - The company expects to return >$1.1 billion in 2025, representing 5.9% of the opening market cap[15] Strategic Priorities - Loyalty enrolments increased by 22% YOY in H1[102], with ~65% of room nights booked by members[102] - Co-brand fee revenue is on track to double by 2025 and more than triple by 2028[114] Regional Performance - Americas RevPAR increased by 1.4%[184], with a fee margin of 82.7%[184] - EMEAA RevPAR increased by 4.1%[188], with a fee margin of 65.8%[188] - Greater China RevPAR decreased by 3.2%[192], with a fee margin of 57.9%[192]