Description

InterContinental Hotels Group: Initiation Of Coverage- A 102,000-Room Pipeline: Why Expansion Still Matters!

InterContinental Hotels Group (IHG Hotels & Resorts) presented a 2025 performance that reflects steady operational progress coupled with strategic actions aimed at long-term growth. The company reported a 1.5% increase in revenue per available room (RevPAR), supported by its broad geographic coverage and diverse brand portfolio. System-wide gross growth reached 6.6%, with net system growth at 4.7%, bolstered by development activity and record openings across 694 hotels, including over 102,000 rooms signed—9% higher than 2024 when adjusted for acquisitions. The company expanded its fee margin by 360 basis points, attributing this to operating leverage and increased ancillary fee streams. Earnings before interest and tax (EBIT) grew by 13%, and adjusted earnings per share (EPS) rose 16%, partly fueled by a $900 million share buyback completed in 2025. For 2026, IHG initiated a further $950 million share repurchase and launched the Noted Collection brand, targeting growth primarily in the EMEAA region but with prospects to expand globally.