IHG Hotels and Resorts Half Year Results for the six months to 30 June 2026
Strong performance with operating profit from reportable segments1 +10% and Adjusted EPS1 +13%; record development activity, with openings and signings both up +8% on an organic basis; on track to return $1.2bn+ to shareholders; compelling long-term growth drivers
Financial Performance
- Revenue (reportable segments): $1,255m (+7% YoY, +6% underlying).
- Operating profit (reportable segments): $665m (+10%).
- Adjusted EPS: 274.7¢ (+13%).
- IFRS basic EPS: 283.3¢ (down 6% due to FX losses).
- Interim dividend: 64.5¢ (+10%).
- Net debt: $3,663m (+9%).
Trading & Revenue Drivers
- Global RevPAR: +4.1% (Americas +4.8%, EMEAA +3.0%, Greater China +3.1%).
- ADR: +2.5%; Occupancy: +1.0%pts.
- Total gross revenue: $18.2bn (+7% at constant currency).
System Growth & Pipeline
- Opened: 31.5k rooms (197 hotels), record level, +8% YoY (ex-Ruby acquisition).
- Signed: 49.2k rooms (352 hotels), also +8% YoY.
- Global estate: 1,049k rooms (7,109 hotels).
- Pipeline: 348k rooms (2,385 hotels), up +3% YoY, equal to 33% of current system size.
Margins & Profitability
- Fee margin: 65.9% (+1.2pts), with fee revenue growth (+7%) outpacing costs (+4%).
- Adjusted EPS growth supported by efficient cost base, FX benefits, and share reduction.
- Trailing 12-month Adjusted EBITDA: $1,392m (+11% YoY).
- Net debt/EBITDA ratio: 2.63x.
Shareholder Returns
- $950m buyback programme (42% completed by June).
- On track to return $1.2bn+ in 2026, ~5.8% of market cap.
CEO Commentary (Elie Maalouf)
- Strong demand across most markets, especially US and Greater China.
- Record development activity with nearly 200 openings in H1.
- Pipeline growth across all regions.
- Confident in meeting full-year profit/earnings expectations despite Middle East conflict impacts.
- Long-term growth driven by scale, enterprise platform, and diversified demand across business, leisure, and group travel.
In short: IHG delivered double-digit profit and EPS growth, record hotel openings and signings, and remains on track for $1.2bn+ shareholder returns in 2026. The results highlight resilience, geographic diversification, and strong long-term growth drivers.
