InterContinental Hotels Group (IHG) reported a rise in first-half profit for 2025, noting easing economic pressures despite a slowdown in U.S. demand, where RevPAR declined 0.9% in the second quarter. The company's global RevPAR was up 3.3% in Q1 2025, reflecting overall positive momentum.
A significant operational milestone was achieved as IHG surpassed one million open rooms across the globe, driven by strong demand for its brands. IHG opened a record number of rooms in the first half of 2025, doubling its brand portfolio to 20 in the past decade and establishing a presence in over 100 countries.
IHG's development pipeline now stands at over 2,200 properties, indicating continued expansion. The company reached 4,000 open hotels in the U.S. and its 800th open hotel in Greater China, demonstrating robust growth in key markets.
The company completed an $800 million share buyback program in 2024 and launched a new $900 million program in 2025, with 36% already completed by Q1 2025, reducing the share count by 1.9% this year. The proposed final dividend for 2024 increased by 10% to $1.144, maintaining a consistent growth rate.
IHG expects to return to converting approximately 100% of adjusted earnings to free cash flow, after a 94% conversion in 2024. Leverage is projected to remain at the lower end of the target range of 2.5x to 3x by the end of 2025, underscoring a disciplined capital allocation strategy.
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