17th Feb 2026 10:55
(Alliance News) - InterContinental Hotels Group PLC on Tuesday forecast stronger demand in the year ahead, as it reported 2025 results and planned a new GBP950 million buyback plan.
The Windsor, England-based hotel operator said pretax profit increased 19% to USD1.07 billion in 2025 from USD897 million in 2024, with profit attributable to IHG equity holders coming in at USD758 million, up from USD628 million. Diluted earnings per share increased to 486.5 US cents from 385.3c.
Revenue rose to USD5.19 billion in 2025 from USD4.92 billion in 2024. This included USD1.90 billion from the fee business, up from USD1.77 billion a year before. It also included USD544 million from own & leased hotels, up from USD515 million. Insurance activities revenue rose to EUR27 million from EUR23 million, while system fund and reimbursable revenues edged up to USD2.72 billion from USD2.61 billion.
IHG proposed a final dividend of 125.9 US cents per share, up 10% a year before, and lifting the total dividend by 10% to 184.5 cents in 2025 from 167.6 cents in 2024.
Also on Tuesday, IHG launched a new buyback scheme worth up to USD950 million, to be completed by the end of December. Goldman Sachs International, part of Goldman Sachs Group Inc, will run the buyback.
IHG returned USD900 million to investors via buybacks during 2025 and paid out USD270 million in cash dividends.
Shares were down 1.3% to USD142.65 on Tuesday morning in London. They are mostly flat over the past 12 months.
The hospitality firm is eyeing "less turbulent trading conditions in the US and stronger demand" in the year ahead.
"Research and consumer surveys point to continued prioritisation of spend on travel, and business surveys indicate expectations for increasing corporate travel budgets in 2026. Economic growth and investment, stable employment, favourable tax policies and the anticipated further easing of interest rates are all expected to support this," IHG said.
"Whilst in some countries geopolitical risk and the economic outlook present shorter-term uncertainties, overall conditions for the global industry remain positive for continued long-term growth," the hotel chain added.
IHG currently operates in around 100 markets, with 6,963 hotels globally. It estimated net system growth of 4.0% in 2025, with the new signings mix giving it around 51% exposure to midscale hotels, and 49% to upscale and luxury venues. It expects "a more balanced system mix and fee stream" in the years to come. Its new premium brand "Noted" launched on Tuesday.
The new pipeline for IHG stands at 2,292 hotels, which represents about 33% of its present system size. Around 50% of the pipeline is under construction, IGH said Tuesday.
Net debt amounted to USD3.33 billion at the end of December, up 20% from USD2.78 million a year before.
Chief Executive Elie Maalouf pointed to the firm's "highest ever hotel openings and signings in Greater China" in 2025, and said: "Supported by attractive long-term industry demand drivers and our proven ability to capitalise on our scale and diverse fee streams across segments and geographies, we enter 2026 with confidence."
By Holly Munks, Alliance News reporter
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