Financial Data and Key Metrics Changes - RevPAR grew by 1.5%, indicating resilience in the operating model and geographic footprint [2][3] - Gross system growth was 6.6% and net system growth was 4.7%, driven by record hotel openings and development activity [3] - EBIT increased by 13% and adjusted EPS grew by 16%, supported by a $900 million share buyback [3] Business Line Data and Key Metrics Changes - The company signed over 102,000 rooms across 694 hotels, a 9% increase compared to 2024, excluding acquisitions [3] - Fee margin expanded by 360 basis points due to operating leverage and increases in ancillary fee streams [3] Market Data and Key Metrics Changes - Early trading performance in all three regions for 2026 has been positive, indicating strong market conditions [4] - In China, RevPAR is gradually improving, with indications of a positive trend continuing into 2026 [12][22] Company Strategy and Development Direction - The company announced a new $950 million share buyback program and launched the Noted Collection brand [4] - The focus remains on strategic growth through brand expansion and maintaining a strong pipeline of hotel openings [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the enterprise platform and long-term growth outlook, despite challenges in 2025 [3][11] - Positive indicators for 2026 include strong GDP growth, low unemployment, and increased consumer spending in the U.S. [70][72] Other Important Information - The company is committed to maintaining a disciplined approach to cost management, with a projected cost increase of only 1% in 2026 [16][30] - The branded residences segment is expected to see substantial growth starting in 2027, contributing positively to future earnings [45][77] Q&A Session Summary Question: What are the levers to ensure EPS growth if RevPAR does not improve? - Management indicated that ancillary revenues are expected to continue growing, and cost control measures will remain in place [15][16] Question: What is the scope of deferred key money into 2026? - Management noted that some investments may roll over from 2025 into 2026, but they remain confident in growth prospects [10][11] Question: How does the company view margins in China? - Management acknowledged slight declines in margins but expressed confidence in improving unit economics and RevPAR in the region [21][22] Question: What is the outlook for branded residences? - Management is optimistic about the growth potential of branded residences, with significant increases expected starting in 2027 [45][77] Question: How does the company plan to address the decline in fee revenues? - Management clarified that the take rate is not reducing and attributed some changes to strategic shifts in brand positioning and key money [85]

Core Insights - IHG Hotels & Resorts has signed a management agreement with Rajdeep Infra & Sales to develop a new voco hotel in Lucknow, India, which will feature 135 rooms and is expected to open in Q3 2029 [1][2][3] Group 1: Expansion Strategy - The new voco hotel will be IHG's third property in Lucknow, complementing existing Holiday Inn and Crowne Plaza hotels, and aligns with the company's strategy to enhance its presence in key urban locations across India [2][3] - IHG is actively pursuing growth in India, with a pipeline of 80 hotels under development and a goal to operate over 400 hotels in total within five years [5] Group 2: Market Potential - Lucknow, as the capital of Uttar Pradesh, is a significant hub for business, government, education, and tourism, attracting both domestic and international travelers [3][4] - The city’s dynamic growth makes it an ideal market for the voco brand, which aims to provide a premium and distinctive hospitality experience [4]

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][13] - EBIT increased by 13%, driven by margin accretion from positive operating leverage and ancillary fees [8][13] Business Line Data and Key Metrics Changes - Fee business revenue increased by 7%, with operating profit up by 14% [11] - Fee margin grew by 390 basis points to 64.7% [12][21] - The company added over 31,000 rooms, achieving a gross system growth of 7.7% year over year [6][17] Market Data and Key Metrics Changes - RevPAR in the Americas grew by 1.4%, with occupancy up by 0.1 percentage points [14] - EMEAA RevPAR grew by 4.1%, with occupancy up by 0.8 percentage points [14] - In Greater China, RevPAR declined by 3.2%, with occupancy up by 0.3 percentage points [15] Company Strategy and Development Direction - The company aims to continue driving development activity across its brands and expand into priority growth geographies [30] - The brand portfolio has expanded from 10 to 20 brands over the last decade, capturing a wider customer base [31] - The company is focusing on enhancing hotel owner returns and increasing ancillary fee streams [30][38] 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 12-15% adjusted EPS growth as a compound annual growth rate [75] - The company remains optimistic about long-term structural growth drivers in key markets, particularly in Greater China [42] Other Important Information - An interim dividend of 58.6¢ was declared, consistent with a 10% growth rate over the past three years [8] - The company is on track to return over $1,100,000,000 to shareholders in 2025 through dividends and share buybacks [8][27] Q&A Session Summary Question: What are the expectations for future growth in the U.S. and Greater China? - Management highlighted that the U.S. and Greater China account for 65% of system size and approximately 60% of the global pipeline, indicating significant future growth potential [39][40] Question: How is the company managing costs and improving margins? - The company has maintained a disciplined approach to cost management, resulting in a fee margin increase of 390 basis points [21][23] Question: What is the strategy for expanding the brand portfolio? - The company plans to continue diversifying its brand portfolio, with a focus on conversion-friendly brands and enhancing the luxury and lifestyle segments [31][38]