InterContinental Hotels Group's operating profit in 2025 increased by 13% year-over-year, and adjusted earnings per share grew by 16% year-over-year.

According to the InterContinental Hotels Group’s 2025 financial report, the group’s operating profit from reportable segments increased by 13% year-on-year, adjusted earnings per share rose by 16% year-on-year, and the total return to shareholders exceeded $1.1 billion, with the number of hotel openings hitting a historical record.

In terms of operational performance, the global revenue per available room (RevPAR) increased by 1.5% year-on-year, with the Americas market growing by 0.3%, the Europe, Middle East, Asia, and Africa (EMEAA) market growing by 4.6%, and the Greater China market declining by 1.6%; the average daily rate (ADR) increased by 0.8%, occupancy rates rose by 0.5 percentage points, and total gross revenue reached $35.2 billion, an increase of 5% year-on-year.

Regarding system scale and the hotel construction sector, the group’s total system scale grew by 6.6%, with a net system growth of 4.7% after excluding relevant impacts, opening 443 new hotels and 65,100 rooms throughout the year, a 10% year-on-year increase. By the end of the year, the total number of rooms in the global system reached 1.026 million across 6,963 hotels; new contracts signed included 102,100 rooms and 694 hotels, with a year-on-year growth of 9% after excluding the impacts of relevant brand acquisitions and contracts. There are currently 2,292 hotels under construction, totaling 340,000 rooms, a year-on-year increase of 4%, representing 33% of the current system scale.

In terms of profit margins, the operating profit margin for the fee-based business improved to 64.8%, up 3.6 percentage points year-on-year, mainly benefiting from positive operating leverage and increased revenue from other businesses; operating profit from reportable segments reached $1.265 billion, with operating profit calculated under IFRS standards at $1.198 billion, and adjusted earnings per share reaching 501.3 cents.

Regarding cash flow and net debt, the net cash flow generated from operating activities was $898 million, and adjusted free cash flow was $893 million, both showing growth compared to the previous year; net debt increased by $551 million, primarily due to shareholder returns, acquisition expenditures, and adverse exchange rate effects. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $1.332 billion, a year-on-year growth of 12%, with the ratio of net debt to adjusted EBITDA at 2.5 times.

In terms of shareholder returns, the group has completed its $900 million stock repurchase plan for 2025 and paid $270 million in common stock dividends, with a proposed year-end dividend of 125.9 cents per share, a 10% year-on-year increase, bringing total dividends for the year to 184.5 cents. Additionally, a new $950 million stock repurchase plan has been initiated, with expected shareholder returns exceeding $1.2 billion in 2026, and a cumulative return of over $5 billion over five years.

Furthermore, the group is vigorously advancing the value creation plan set at the beginning of 2024, achieving significant results in brand growth and market expansion. A new high-end hotel brand, Noted Collection, was launched during the year, and the acquisition of the urban lifestyle brand Ruby was completed, further enriching the high-end brand portfolio. Elie Maalouf, CEO of InterContinental Hotels Group, stated that despite fluctuations in the market environment, the group has still achieved excellent financial performance, with ongoing brand development and market expansion, and the scale of hotels under construction provides ample room for future growth. Leveraging scale advantages and a diversified cost structure, the group is confident about its development in 2026.

(InterContinental Hotels Group)