IHG Posts Record Growth and $1.1B Shareholder Return Plan

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Global travel continues its rebound, and IHG Hotels & Resorts is riding the wave with record growth, rising profits, and a bold commitment to shareholders. In a strong first-half 2025 earnings report, IHG revealed a 13% jump in operating profit from reportable segments and a 19% increase in adjusted earnings per share (EPS), backed by record hotel openings and a pipeline signaling even greater expansion ahead.

The hospitality giant, which just surpassed one million open rooms globally, is also on track to return over $1.1 billion to shareholders this year, through a combination of dividends and share buybacks. With nearly half of its $900 million buyback program already completed by June 30, IHG is reinforcing investor confidence while executing a long-term growth strategy.

“We opened a record number of rooms in the half… and signed another 324 properties into our pipeline,” said CEO Elie Maalouf. “These achievements propelled our adjusted EPS growth to +19%.”

Key Highlights from H1 2025:

Operating Profit: $604 million from reportable segments, +13% year-over-year
Adjusted EPS: 242.5¢, up +19%
Fee Revenue: $908 million, up +7%
Fee Margin: Up nearly 4 percentage points to 64.7%
Total Revenue: $2.52 billion, +8%
Interim Dividend: 58.6¢, +10%
Cash Flow: Adjusted free cash flow more than doubled to $302 million

Record Growth by the Numbers

IHG opened 207 hotels (31,400 rooms) in just six months—a 75% increase year-over-year—setting a new company record. The global system size now spans 6,760 hotels, and the development pipeline sits at 2,276 hotels (338,000 rooms), equivalent to 34% growth potential. Even after removing rooms previously affiliated with The Venetian Resort Las Vegas, net system growth stands at +5.4% year-over-year.

Meanwhile, RevPAR (revenue per available room) saw moderate global gains at +1.8%, led by strong performance in EMEAA (+4.1%) and the Americas (+1.4%), despite softness in Greater China (-3.2%). Average daily rate increased +1.4%, and occupancy was up slightly by +0.3 percentage points.

Shareholder First

In a clear signal of financial strength, IHG continues to return capital at scale. The first half saw $605 million returned to shareholders, alongside $120 million in acquisition spending and a $96 million FX impact on net debt, which now stands at $3.36 billion. Still, with trailing 12-month adjusted EBITDA up 10% to $1.26 billion, the company maintains a healthy net debt to EBITDA ratio of 2.67x.

Outlook: Scaling Up with Confidence

Looking ahead, Maalouf emphasized confidence in the group’s long-term growth model:

“We remain on track to meet full-year profit and earnings expectations. While some shorter-term macroeconomic uncertainties remain, many are subsiding.”

IHG’s growth algorithm—anchored in its expanding brand portfolio, increasing owner demand, and scalable tech and loyalty platforms—continues to deliver across both mature and emerging markets.

A Brand for Every Traveler

From luxury eco-retreats in Mexico to urban escapes in Malta and historic returns in Kyoto, IHG’s diverse brand lineup is capturing market share globally. With 20 brands and counting, including InterContinental, Holiday Inn, voco, Kimpton, and Hotel Indigo, the group offers something for every type of guest—and every type of investor.