Earnings Release • Feb 18, 2025
Earnings Release
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Strong performance with operating profit from reportable segments1 +10% and Adjusted EPS1 +15%; signings +34%; over \$1bn returned to shareholders; confident in long-term growth drivers
| 2024 | 2023 | % change | Underlying1 % change |
|
|---|---|---|---|---|
| Results from reportable segments1: | ||||
| Revenue1 | \$2,312m | \$2,164m | +7% | +7% |
| Revenue from fee business1 | \$1,774m | \$1,672m | +6% | +7% |
| Operating profit1 | \$1,124m | \$1,019m | +10% | +12% |
| Fee margin1 | 61.2% | 59.3% | +1.9%pts | |
| Adjusted EPS1 | 432.4¢ | 375.7¢ | +15% | |
| IFRS results: | ||||
| Total revenue | \$4,923m | \$4,624m | +6% | |
| Operating profit | \$1,041m | \$1,066m | (2)% | |
| Basic EPS | 389.6¢ | 443.8¢ | (12)% | |
| Total dividend per share | 167.6¢ | 152.3¢ | +10% | |
| Net debt1 | \$2,782m | \$2,272m | +22% |
"Thanks to the hard work and dedication of our teams around the world, 2024 was an excellent year of financial performance, strong growth and important progress against a clear strategy that is unlocking the full potential of our business for all stakeholders. RevPAR growth accelerated in Q4, reflecting the breadth of our global footprint and improvements in all three regions. Together with strong system growth, notable margin expansion and the benefit of returning surplus capital through buybacks, we're pleased to report adjusted EPS growth for the year of +15%.
Strong demand globally from hotel owners and developers for our brands drove the opening of 371 hotels and an impressive 714 properties signed into our pipeline, equivalent to almost two a day. The 106,000 rooms signed were +34% more than the previous year. Our global estate now stands at over 6,600 hotels, and momentum continued into 2025 with the recent celebration of our 800th opening in Greater China. Our global pipeline increased +10% to over 2,200 hotels, representing future system size growth of +33%.
We are delighted to announce the acquisition of the Ruby brand, which further enriches our portfolio with an exciting, distinct and high-quality offer for both guests and owners in popular city destinations. This acquisition demonstrates our focus on building our presence in large, attractive industry segments and using our experience of integrating and growing brands and hotel portfolios. The urban micro space is a franchise-friendly model with attractive owner economics, and we see excellent opportunities to not only expand Ruby's strong European base but also rapidly take this exciting brand to the Americas and across Asia, as we have successfully done with previous brand acquisitions.
We continue to strengthen our enterprise to position IHG as the first choice for guests and owners, further improving and growing our brands, driving loyalty contribution, rolling out new hotel technology and increasing our ancillary fee streams. Our cash generation and strong balance sheet supports further investment in growth, and we also continue to sustainably increase our ordinary dividend and the regular return of surplus capital through share buybacks. The Board is pleased to propose another 10% increase in the dividend, and the launch today of a new \$900m share buyback programme. We enter 2025 with confidence in further capitalising on our scale, leading positions and the attractive longterm demand drivers for our markets, all of which supports the ongoing successful delivery of our growth algorithm."
Investor Relations: Stuart Ford (+44 (0)7823 828 739); Kate Carpenter (+44 (0)7825 655 702); Joe Simpson (+44 (0)7976 862 072) Media Relations: Neil Maidment (+44 (0)7970 668 250); Mike Ward (+44 (0)7795 257 407)
A pre-recorded webcast presented by Elie Maalouf, Chief Executive Officer, and Michael Glover, Chief Financial Officer, will be available from 7:00am (London time) today, 18 February 2025, at www.ihgplc.com/en/investors/results-andpresentations. This same website link also provides access to the full release and supplementary information pack covering RevPAR, system size and pipeline data.
A live Q&A session will be hosted later this morning at 9:30am (London time). This can be listened to via www.ihgplc.com/en/investors/results-and-presentations (pre-registration required). Analysts and institutional investors wishing to ask questions are required to use the following dial-in details for a Q&A facility:
| UK: | 020 3936 2999 |
|---|---|
| US: | 646 233 4753 |
| Other international: | click here |
| Passcode: | 835445 |
An archived replay including the Q&A session is expected to be available within 24 hours and will remain available at www.ihgplc.com/en/investors/results-and-presentations.
IHG Hotels & Resorts (tickers: LON:IHG for Ordinary Shares; NYSE:IHG for ADRs) is a global hospitality company, with a purpose to provide True Hospitality for Good.
With a family of 19 hotel brands and IHG One Rewards, one of the world's largest hotel loyalty programmes, IHG has over 6,600 open hotels in more than 100 countries, and a development pipeline of over 2,200 properties.
InterContinental Hotels Group PLC is the Group's holding company and is incorporated and registered in England and Wales. Approximately 385,000 people work across IHG's hotels and corporate offices globally.
Visit us online for more about our hotels and reservations and IHG One Rewards. To download the IHG One Rewards app, visit the Apple App or Google Play stores.
For our latest news, visit our Newsroom and follow us on LinkedIn.
In February 2024 we evolved key elements of our strategy in order to further strengthen IHG's ability to drive growth. These build on investments in recent years to our brand portfolio, IHG One Rewards and our wider enterprise. Our purpose of True Hospitality for Good remains at the heart of our brands and culture and is unchanged, but our ambition as an organisation was simplified to focus on what is central to accelerating growth: being the hotel company of choice for guests and owners. The evolved pillars of our strategy are as follows:
Together, our strategic pillars will take us beyond what's already been built and achieved, driving us to realise IHG's full potential in a sustainable and responsible way. Over the long term, with disciplined execution, our strategy creates value for all our stakeholders by delivering growth in profits and cash flows, which can be reinvested in our business and returned to shareholders, reflecting how IHG delivers on our growth algorithm and investment case.
In 2024, we have made great progress on these priorities, including:
Each of these are summarised below, together with updates on our progress and commitments as a responsible business. Following that, we highlight key trends in recent trading and the outlook for our industry. Together, these have driven 2024's progress on our growth algorithm, which we set out a year ago as central to delivering value creation over the medium to long term, and we are confident of further progress in 2025.
Our openings and signings growth in 2024 reflects the strength of IHG's brand portfolio and the overall enterprise platform that we provide to hotel owners, together with the long-term attractiveness of the markets we operate in:
| System | Pipeline | ||||||
|---|---|---|---|---|---|---|---|
| Openings | Removals | Net | Total | YOY% | Signings | Total | |
| Group | 59,117 | (18,195) | 40,922 | 987,125 | +4.3% | 106,242 | 325,252 |
| Americas | 16,832 | (8,432) | 8,400 | 527,994 | +1.6% | 26,552 | 109,334 |
| EMEAA | 23,620 | (4,413) | 19,207 | 266,474 | +7.8% | 50,275 | 103,367 |
| Greater China | 18,665 | (5,350) | 13,315 | 192,657 | +7.4% | 29,415 | 112,551 |
The regional performance reviews provide further detail of the system and pipeline by region, and further analysis by brand and by ownership type.
As part of our relentless focus on growth, we look to grow our brands individually and our overall brand portfolio, supported by our masterbrand and loyalty programme. Successful brand growth and awareness is inherently linked to RevPAR performance, increasing our system size, sustainable progression of fee rates, and, ultimately, to achieving attractive returns on investment for our hotel owners. Key developments and highlights in 2024 included:
IHG brands are already in over 100 countries. There are many opportunities to develop further in existing markets by introducing IHG brands not yet present, as well as entering new countries with no current IHG presence at all. Existing markets may also be high growth markets particularly where they are developing economies with low branded hotel penetration. Others may already be high value and developed markets, but where our evolved brand portfolio can target an increased market share.
By investing in our enterprise we drove the percentage of room revenue booked through IHG-managed channels and sources to 81% for 2024, another year of increase and up from 72% in 2020. This is a key indicator of value-add, the success of our commercial engine across technology platforms, and of our sales and distribution channels. Providing our hotel owners higher-value revenue at lower cost of acquisition is of paramount importance to the attractiveness and proven success of our enterprise system. Further developments in 2024 included:
IHG also actively develops opportunities to grow ancillary fee streams from other sources. These are separate and in addition to fee streams paid by hotel owners for use of IHG's brands and for the services provided to them as part of our enterprise platform. Ancillary streams also typically further enhance our overall fee margin, providing step changes and thereafter contributing to our target of 100-150bps annual improvement in fee margin on average over the medium to long term.
The Board expects IHG's business model to continue its strong track record of generating substantial capacity to support our investment plans that drive growth, to fund a sustainably growing ordinary dividend, and to routinely return surplus capital to our shareholders.
This is a key strategic pillar for IHG, focused around clear Journey to Tomorrow commitments to 2030 in respect of our people, communities and planet. Progress against these is reported on extensively in our Responsible Business Reports, with notable developments in 2024 including:
During the year, we took many other important steps to reduce our energy use and carbon emissions. These included incorporating more Energy Conservation Measures (ECMs) into our brand standards, upgrading our environmental data collection platform, and setting customised annual energy reduction targets for each property that are integrated into broader hotel performance monitoring. In 2021, we set an ambition to reduce absolute Scope 1 and 2 Greenhouse Gas (GHG) emissions and Scope 3 GHG emissions from our franchised hotels energy consumption and Fuel and Energy Related Activities (FERA) by 46% by 2030 from a 2019 baseline year. This 1.5°C aligned target received validation from the Science Based Targets Initiative (SBTi). On an intensity basis, per available room, to date we have achieved a 9.4% reduction in energy use and an 11.5% reduction in GHG emissions.
However, major factors outside of IHG's control such as lower than expected progress in electricity grid decarbonisation and renewable energy support, together with the growth of our system size, means our total emissions are up 7.2% since 2019. This means we are not on track to meet our 2030 target. We will continue our many initiatives and dedication to assisting our hotel owners in reducing emissions. Whilst our programmes will require time to scale, the actions we are taking today are meaningfully improving operational efficiency of IHG hotels and preparing us for accelerated decarbonisation once market factors are more favourable. We will also maintain ongoing, transparent reporting against our existing targets. We will look to re-evaluate our targets, including reviewing rapidly evolving standards, updates to carbon accounting and validation criteria. The landscape in the sustainability space is rapidly changing, and it is crucial for us to take the time to reflect on the implications for IHG. Focusing on what we can control and influence, and ensuring our actions remain relevant across the geographies we serve, will be essential.
IHG announced in a separate statement on 18 February 2025 that it has acquired the Ruby brand and related intellectual property for initial purchase consideration of €110.5m (~\$116m1). Ruby is a premium urban lifestyle brand for modern travellers in must-visit city destinations and provides hotel owners with space-efficient designs and an attractive, flexible concept that IHG expects to rapidly expand globally.
Established in 2013, the Ruby brand currently operates 20 hotels (3,483 rooms) in major cities across Europe and has another 10 pipeline hotels (2,235 rooms). There are 9 hotels open in Germany (across Cologne, Dusseldorf, Frankfurt, Hamburg, Munich and Stuttgart), 3 in the UK in London, 3 in Austria in Vienna, 2 in Switzerland (Geneva and Zurich), and 1 in each of Italy, Ireland and the Netherlands. The pipeline hotels are set to open over the next three years across more European cities including Edinburgh, Marseille, Rome and Stockholm.
Ruby hotels offer a stylish yet relaxed charm, blending soulful design and authentic stories rooted in the cities they call home. The brand's 'Lean Luxury' approach includes signature touches ranging from a great bed and shower in guest rooms created with restoration and relaxation in mind, to unique cocktails in destination 24/7 bars, all coming together to connect guests with sought-after cities at the right price.
As our 20th brand, Ruby will extend IHG's appeal to modern, lifestyle-focused travellers, and offers hotel owners a costefficient and highly adaptable premium hotel concept, in an industry segment characterised by high barriers to entry and space constraints, often referred to in the industry as 'urban micro'. Efficiencies for owners are delivered through spacesaving designs and a high degree of operational standardisation and automation, including self-service kiosks for speedy check-in.
Ruby is already well-established in Europe and has proven to be successful for both new build locations as well as being highly conversion-friendly, including for adaptive re-use across a range of commercial property types, with several successful office conversions. Reflecting this, the Ruby brand has achieved a net system size compound annual growth rate (CAGR) of 26% over the last five years. The seller of the brand anticipates growing their portfolio of Ruby-branded hotels substantially further, and IHG expects to grow the brand with other hotel owners in Europe and globally. This builds upon IHG's proven track record of successfully internationalising brands that it has organically developed and acquired. IHG expects to have the Ruby brand ready for development in the US by the end of the year.
Joining forces with IHG allows Ruby hotels to draw on a powerful enterprise platform of distribution and technology systems, as well as one of the world's biggest and most powerful hotel loyalty programmes, IHG One Rewards. IHG expects the urban micro sub-segment to continue experiencing strong demand from travellers around the world, and this in turn would support ongoing rooms supply growth at higher rates than the global hotel industry. IHG is targeting the Ruby brand to grow to more than 120 hotels over the next 10 years and accelerate to more than 250 over 20 years across owners globally.
As part of the master franchise and development agreement with Ruby, initial franchise fees receivable by IHG from the current 20 open hotels and the current pipeline of 10 hotels (which are all expected to open by the end of 2027) are anticipated to be approximately \$8m in 2028, which would be the first full year when all 30 hotels would be in IHG's system. Taking into consideration further development by the seller to open more hotels beyond their current pipeline, together with IHG's plans to expand the Ruby brand with other hotel owners globally, franchise fees by 2030 are anticipated to be in excess of \$15m.
Further details on the acquisition agreement and a financial overview are reported on within the separate statement dated 18 February 2025 which is available at www.ihgplc.com/en/investors/results-and-presentations.
In the Americas, FY RevPAR was +2.5%, with occupancy +0.3%pts and rate +2.0%. Trading improved from Q1 when RevPAR was down -0.3% with an adverse impact from the timing of Easter. This was followed by higher demand in April which, along with more normalised growth in the two subsequent months, resulted in Q2 RevPAR of +3.3%. Q3 RevPAR was +1.7%, with Leisure rooms revenue booked for the key summer vacation quarter only slightly lower than 2023 levels, and Business and Groups demand well ahead. In Q4, RevPAR was +4.6%, with demand for each of Leisure, Business and Groups showing similar levels of growth. Reflecting economic stability in the US, its FY RevPAR was +1.7%, and in aggregate across Canada, Latin America and the Caribbean RevPAR was +8.8%.
For EMEAA, FY RevPAR grew +6.6%, with occupancy +2.0%pts and rate +3.6% higher. Trading in Q1 saw RevPAR +8.9%, which was followed by +6.3% in Q2 as strong demand continued despite normalising across this diverse region as more countries exceeded pre-Covid levels of performance. Further normalising resulted in Q3 RevPAR of +4.9%, but with Q4 then seeing an acceleration in demand with RevPAR growing +6.9%. By major geographic sub-markets, FY RevPAR saw growth rates of: +10.9% in East Asia & Pacific, which included the benefit of inbound leisure travel from Greater China; +5.7% in the Middle East, +5.9% in Continental Europe; and +2.3% in the UK. The breadth of range in performance primarily reflects the differing stages of recovery already achieved in the prior year.
In Greater China, FY RevPAR was -4.8%, with occupancy -0.4%pts and rate -4.2% lower. Q1 RevPAR of +2.5% was followed by -7.0% in Q2 as comparatives became sequentially tougher due to timing of resurgent domestic demand in 2023 after the lifting of travel restrictions. In 2024 the industry has experienced shifting patterns of demand mix with more notable effect on rate, including an expansion of outbound Leisure travel to other markets, particularly elsewhere in Asia Pacific which benefited our EMEAA region. Comparatives became further sequentially tougher in Q3, with that quarter in 2023 marking when RevPAR first exceeded 2019 levels, with comparatives then easing in Q4. As a result, RevPAR was -10.3% YOY in Q3, improving to -2.8% in Q4. The trading patterns over the course of 2024 have therefore reflected greater normalisation in demand. Looking beyond, industry forecasts continue to expect attractive growth in the region, which include the benefit of GDP growth, the doubling in the number of middle income households, and the still low penetration of hotel rooms per capita relative to other markets. We are also encouraged by the continued supportive government policies towards travel & tourism, infrastructure investment and economic development, which are reflected in our strong openings and signings which were up +14% and +13% YOY, respectively.
Trends by guest stay occasion saw rooms revenue for 2024's Leisure bookings grow by +3% YOY (+4% room nights, 0% rate) on a comparable hotel basis, Business by +2% (-1% room nights, +3% rate) and Groups by +6% (+2% room nights, +4% rate). This builds further on the already fully completed recovery for all three stay occasions in 2023, as our total global rooms revenue was +33% ahead of 2019 levels for Leisure, +3% ahead for Business, and Groups was -5% lower but improved to a positive position by the final quarter of 2023.
Building on our strong track record of driving growth and shareholder returns, in February 2024 IHG set out a clear framework for value creation over the medium to long term:
IHG's total fee revenue growth is driven by the combination of RevPAR and net system size growth. Positive operational leverage is expected to drive 100-150bps annual improvement in fee margin as revenue growth is expected to grow faster than the increase in our cost base. Additional drivers of this include structural shifts over time such as a growing proportion of franchising and increasing scale efficiencies in EMEAA and Greater China.
In addition to fee margin progress from operational leverage, IHG is actively developing further opportunities to drive fee margin over the longer term. These include ongoing cost base efficiency and effectiveness initiatives, and the expansion of ancillary fee streams including driving additional growth from loyalty point sales and co-brand credit cards.
IHG made strong progress on all components of our growth algorithm:
Regarding fee margin1 expansion, around 130bps was driven by operational leverage as fee revenue1 growth of 6% exceeded fee business cost growth of 1%. Our fee margin1 was further expanded by around 60bps from the previously noted ~\$25m of revenue from the sale of certain loyalty points (together with certain other ancillary revenues) now being reported within IHG's results from reportable segments.
Cash conversion of 94% in 2024 was lower than the 132% conversion in 2023. This was driven in 2024 by the planned higher spend in the System Fund, together with increased investment in key money capital expenditure that has supported the growth in our development activity levels particularly in Premium and Luxury & Lifestyle brands as well as with conversion portfolios. This was partially offset by the initial cash inflows received upfront in relation to entering into the new US co-brand credit card agreements. The typical ~100% conversion that IHG has historically achieved is expected to resume in the future.
The Board is confident of continued progress aligned with our growth algorithm that will deliver further value creation over the medium to long term.
1. Definitions for non-GAAP measures can be found in the 'Key performance measures and non-GAAP measures' section, along with reconciliations of these measures to the most directly comparable line items within the Financial Statements.
| INCOME STATEMENT SUMMARY | ||||
|---|---|---|---|---|
| 12 months ended 31 December 2023 |
||||
| 2024 \$m |
\$m | % change |
||
| Revenuea | ||||
| Americas | 1,141 | 1,105 | 3.3 | |
| EMEAA | 748 | 677 | 10.5 | |
| Greater China | 161 | 161 | 0.0 | |
| Central | 262 ______ |
221 ______ |
18.6 ______ |
|
| Revenue from reportable segmentsb | 2,312 | 2,164 | 6.8 | |
| System Fund and reimbursable revenues | 2,611 ______ |
2,460 ______ |
6.1 ______ |
|
| Total revenue | 4,923 | 4,624 | 6.5 | |
| Operating profita | ||||
| Americas | 828 | 815 | 1.6 | |
| EMEAA | 270 | 215 | 25.6 | |
| Greater China | 98 | 96 | 2.1 | |
| Central | (72) ______ |
(107) ______ |
(32.7) ______ |
|
| Operating profit from reportable segmentsb | 1,124 | 1,019 | 10.3 | |
| Analysed as: Fee business |
1,085 | 992 | 9.4 | |
| Owned, leased and managed lease | 45 | 29 | 55.2 | |
| Insurance activities | (6) | (2) | 200.0 | |
| System Fund and reimbursable result | (83) | 19 | NMd | |
| Operating profit before exceptional items | ______ 1,041 |
______ 1,038 |
______ 0.3 |
|
| Operating exceptional items | - | 28 | NMd | |
| Operating profit | ______ 1,041 |
______ 1,066 |
______ (2.3) |
|
| Net financial expenses | (140) | (52) | 169.2 | |
| Analysed as: | ||||
| Adjusted interest expenseb | (165) | (131) | 26.0 | |
| System Fund interest | 50 | 44 | 13.6 | |
| Foreign exchange (losses)/gains | (25) | 35 | NMd | |
| Fair value losses on contingent purchase consideration | (4) ______ |
(4) ______ |
0.0 ______ |
|
| Profit before tax | 897 | 1,010 | (11.2) | |
| Tax Analysed as: |
(269) | (260) | 3.5 | |
| Adjusted taxb | (262) | (253) | 3.6 | |
| Tax attributable to System Fund | (4) | (3) | 33.3 | |
| Tax on foreign exchange (losses)/gains | (3) | 3 | NMd | |
| Tax on exceptional items | - | (7) | NMd | |
| Profit for the year | ______ 628 |
______ 750 |
______ (16.3) |
|
| Adjusted earningsc | 697 | 635 | 9.8 | |
| Basic weighted average number of ordinary shares (millions) | 161.2 | 169.0 | (4.6) | |
| Earnings per ordinary share | ______ | ______ | ______ | |
| Basic | 389.6¢ | 443.8¢ | (12.2) | |
| Adjustedb | 432.4¢ | 375.7¢ | 15.1 | |
| Dividend per share | 167.6¢ | 152.3¢ | 10.0 | |
| Average US dollar to sterling exchange rate | \$1: £0.78 | \$1: £0.80 | (2.5) |
a. Americas and EMEAA include revenue and operating profit before exceptional items from both fee business and owned, leased and managed lease hotels. Greater China includes revenue and operating profit
before exceptional items from fee business. b. Definitions for non-GAAP measures can be found in the 'Key performance measures and non-GAAP measures' section, along with reconciliations of these measures to the most directly comparable line items within the Financial Statements.
c. Adjusted earnings as used within adjusted earnings per share, a non-GAAP measure. d. Percentage change considered not meaningful, such as where a positive balance in the latest period is comparable to a negative or zero balance in the prior period.
Global RevPAR increased year-on-year by 2.6% in the first quarter, 3.2% in the second quarter, 1.5% in the third quarter, 4.6% in the fourth quarter and 3.0% for the full year, reflecting the continued strength of travel demand and our globally diverse portfolio of hotels. Our other key driver of revenue, net system size, increased by 4.3% year-on-year to 987,125 rooms.
Total revenue increased by \$299m (6.5%) to \$4,923m, including a \$151m increase in System Fund and reimbursable revenues. Revenue from reportable segmentsa increased by \$148m (6.8%) to \$2,312m, driven by positive trading conditions, and the revenue recognised from the sale of loyalty points and co-brand credit card fees. Underlying revenuea increased by \$157m (7.3%) to \$2,304m, with underlying fee revenuea increasing by \$111m (6.7%) to \$1,774m. Owned, leased and managed lease revenue increased by \$44m (9.3%) to \$515m.
Operating profit decreased by \$25m from \$1,066m to \$1,041m, including the non-repeat of \$28m operating exceptional income recorded in the prior year, and a \$102m decrease in the reported System Fund and reimbursable result, from a \$19m profit in 2023 to an \$83m loss in 2024.
Operating profit from reportable segmentsa increased by \$105m (10.3%) to \$1,124m. Fee business operating profit increased by \$93m (9.4%) to \$1,085m, due to the improvement in trading which also drove a \$10m increase in incentive management fees to \$178m, and the recognition of ancillary fee revenue. Owned, leased and managed lease operating profit improved from \$29m to \$45m. Underlying operating profita increased by \$118m (11.7%) to \$1,128m.
Fee margina increased by 1.9%pts to 61.2%, driven by strong trading together with new and growing ancillary fee streams. Around 1.3%pts was driven by operational leverage and a further 0.6%pts was due to a portion of proceeds from the sale of certain loyalty points, together with other ancillary revenues, now being reported within IHG's results from reportable segmentsa.
The impact of the movement in average USD exchange rates for 2023 compared to 2024 netted to a \$12m impact on operating profit from reportable segmentsa when calculated as restating 2023 figures at 2024 exchange rates, but negatively impacted operating profit from reportable segmentsa by \$16m when applying 2023 rates to 2024 figures.
If the average exchange rate during January 2025 had existed throughout 2024, the 2024 operating profit from reportable segmentsa would have been \$12m lower.
The Group operates a System Fund to collect and administer assessments from hotel owners for specified purposes of use including marketing, reservations, certain hotel services and the Group's loyalty programme, IHG One Rewards. The System Fund also benefits from certain proceeds from the sale of loyalty points under third-party co-branding arrangements and the sale of points directly to members and other third parties. The Fund is not managed to generate a surplus or deficit for IHG over the longer term, but is managed for the benefit of hotels in the IHG system with the objective of driving revenues for the hotels in the system.
The growth in the IHG One Rewards programme means that, although assessments are received from hotels upfront when a member earns points, more revenue is deferred each year than is recognised in the System Fund. This can lead to accounting losses in the System Fund each year as the deferred revenue balance grows which do not necessarily reflect the Fund's position and the Group's capacity to invest.
Reimbursable revenues represent reimbursements of expenses incurred on behalf of managed and franchised properties and relate, predominantly, to payroll costs at managed properties where IHG is the employer. As IHG records reimbursable expenses based upon costs incurred with no added mark up, this revenue and related expenses have no impact on either operating profit or net profit for the year.
In the year to 31 December 2024, System Fund and reimbursable revenues increased \$151m (6.1%) to \$2,611m. The positive impact of continued strength in travel demand was partially offset by the changes to the System Fund arrangements that included a reduction in owner loyalty assessments and a portion of the revenue from the sale of certain loyalty points, together with certain other ancillary revenues, that are now being reported within IHG's results from reportable segmentsa.
The reported System Fund and reimbursable result declined to an \$83m loss from a \$19m profit, primarily due to the increased investments in marketing, loyalty and commercial activities, combined with the aforementioned changes to the System Fund arrangement.
a. Definitions for non-GAAP measures can be found in the 'Key performance measures and non-GAAP measures' section, along with reconciliations of these measures to the most directly comparable line items within the Financial Statements.
Operating exceptional items for the year to 31 December 2024 net to \$nil (2023: \$28m). 2024 comprised costs of \$12m relating to litigation and commercial disputes offset by \$12m of impairment reversals, which are classified as exceptional for consistency with the treatment of the corresponding impairments in 2020. Further information on exceptional items can be found in note 5 to the Financial Statements.
Net financial expenses increased to \$140m from \$52m. Net financial expenses include foreign exchange losses of \$25m (2023: \$35m gain), total interest costs on public bonds, which are fixed rate debt, of \$123m (2023: \$78m) and interest expense on lease liabilities of \$30m (2023: \$29m).
Adjusted interesta, which excludes exceptional finance expenses and foreign exchange gains/losses and adds back interest attributable to the System Fund, increased by \$34m to an expense of \$165m. The increase in adjusted interesta was primarily driven by an increase in interest on bonds of \$45m, and an increase in interest attributable to the System Fund of \$6m, partially offset by a \$24m increase in financial income.
Contingent purchase consideration arose on the acquisition of Regent. The net loss of \$4m (2023: \$4m) is principally due to the impact of the unwind of the discount due to the passage of time. The total contingent purchase consideration liability at 31 December 2024 is \$73m (31 December 2023: \$69m).
The adjusted tax ratea for 2024 was 27% (2023: 28%). Taxation within exceptional items totalled \$nil (2023: charge of \$7m) and relates to the tax impacts of the operating exceptional items. Tax paid in 2024 totalled \$309m (2023: \$243m). Further information on tax can be found in note 6 to the Group Financial Statements.
The Group's basic earnings per ordinary share is 389.6¢ (2023: 443.8¢). Adjusted earnings per ordinary sharea increased by 56.7¢ (15.1%) to 432.4¢.
The Board is proposing a final dividend of 114.4¢ in respect of 2024, an increase of 10% on 2023. With the interim dividend of 53.2¢ paid in October 2024, the total dividend for the year would therefore be 167.6¢, representing an increase of 10% on 2023. The ex-dividend date for ordinary shares is Thursday 3 April 2025 and for American Depositary Receipts the ex-dividend date is Friday 4 April 2025. The record date (for both ordinary shares and American Depositary Receipts) is Friday 4 April 2025. The corresponding dividend amount in Pence Sterling per ordinary share will be announced on Monday 28 April 2025, calculated based on the average of the market exchange rates for the three working days commencing 23 April 2025. Subject to shareholder approval at the AGM on Thursday 8 May 2025, the dividend will be paid on Thursday 15 May 2025. A Dividend Reinvestment Plan ("DRIP") is provided by Equiniti Financial Services Limited. The DRIP enables the Company's shareholders to elect to have their cash dividend payments used to purchase the Company's shares. More information can be found at www.shareview.co.uk/info/drip. The cut-off date and time for the receipt of DRIP elections for the final dividend referred to above is 23 April 2025 at 5:00pm (UK time).
The Board has approved a \$900m share buyback programme in 2025. This follows the \$800m programme in 2024, the \$750m programme in 2023 and the \$500m programme announced in 2022 which already reduced the total number of voting rights in the Company by 4.6%, 6.1% and 5.0%, respectively. In 2024, 7.5m shares were repurchased for total consideration of \$812m, including \$20m of taxes and transaction costs (see note 12 to the Financial Statements).
a. Definitions for non-GAAP measures can be found in the 'Key performance measures and non-GAAP measures' section, along with reconciliations of these measures to the most directly comparable line items within the Financial Statements.
| Summary of cash flow, working capital, net debt and liquidity | |||
|---|---|---|---|
| Adjusted EBITDAa reconciliation | 12 months ended 31 December | ||
| 2024 | 2023 | ||
| \$m | \$m | ||
| Cash flow from operations | 1,149 | 1,219 | |
| Cash flows relating to exceptional items | (8) | 29 | |
| Impairment (loss)/reversal on financial assets | (16) | 1 | |
| Other impairment charges | (6) | - | |
| Other non-cash adjustments to operating profit | (77) | (60) | |
| System Fund and reimbursable result | 83 | (19) | |
| System Fund depreciation and amortisation | (80) | (83) | |
| Other non-cash adjustments to System Fund result | (37) | (23) | |
| Working capital and other adjustments | (56) | (79) | |
| Capital expenditure: contract acquisition costs net of repayments | 237 | 101 | |
| Adjusted EBITDAa | ____ 1,189 |
____ 1,086 |
_____ _____
| CASH FLOW SUMMARY | 12 months ended 31 December | |||
|---|---|---|---|---|
| 2024 | 2023 Re | \$m | ||
| presentedb | ||||
| \$m | \$m | change | ||
| Adjusted EBITDAa | 1,189 | 1,086 | 103 | |
| Working capital and other adjustments | 56 | 79 | ||
| Repayments/(payments) related to investments supporting the Group's insurance activities |
5 | (11) | ||
| Impairment loss/(reversal) on financial assets | 16 | (1) | ||
| Other impairment charges | 6 | - | ||
| Other non-cash adjustments to operating profit | 77 | 60 | ||
| System Fund and reimbursable result | (83) | 19 | ||
| Non-cash adjustments to System Fund result | 117 | 106 | ||
| Capital expenditure: key money contract acquisition costs, net of repayments |
(206) | (101) | ||
| Capital expenditure: gross maintenance | (31) | (38) | ||
| Net interest paid | (113) | (83) | ||
| Tax paid | (309) | (243) | ||
| Principal element of lease payments, net of finance lease receipts | (42) | (28) | ||
| Purchase of own shares by employee share trusts | (27) | (8) | ||
| Adjusted free cash flowa | _____ 655 |
____ 837 |
_____ (182) |
|
| Cash flows relating to exceptional items | 8 | (29) | ||
| Capital expenditure: gross recyclable investments | (68) | (50) | ||
| Capital expenditure: gross System Fund capital investments | (45) | (46) | ||
| Deferred purchase consideration paid | (13) | - | ||
| Disposals and repayments, including proceeds from other financial assets |
15 | 8 | ||
| Repurchase of shares, including transaction costs | (804) | (790) | ||
| Dividends paid to shareholders | (259) | (245) | ||
| Dividends paid to non-controlling interest | - | (3) | ||
| Net cash flow before other net debta movements | ______ (511) |
_____ (318) |
_____ (193) |
|
| Add back principal element of lease repayments | 46 | 28 | ||
| Exchange and other non-cash adjustments | (45) | (131) | ||
| Increase in net debta | ______ (510) |
______ (421) |
_____ (89) |
|
| Net debta at beginning of the year | (2,272) | (1,851) | ||
| Net debta at end of the year | (2,782) | (2,272) | (510) |
a. Definitions for non-GAAP measures can be found in the 'Key performance measures and non-GAAP measures' section, along with reconciliations of these measures to the most directly comparable line
items within the Financial Statements. b. Re-presented to reflect the updated definition of adjusted free cash flow – see page 32 to 33.
______ ______ _____
For the year ended 31 December 2024, cash flow from operations was \$1,149m, a decrease of \$70m on the previous year. This was led by the decrease in System Fund and reimbursable result together with increased contract acquisition costs, partly offset by higher operating profit from reportable segmentsa.
Cash flow from operations is the principal source of cash used to fund interest and tax payments, capital expenditure, ordinary dividend payments and additional returns of capital.
Adjusted free cash flowa was an inflow of \$655m, a decrease of \$182m on the prior year. Adjusted EBITDAa increased by \$103m due to the improvement in trading and the expansion of ancillary fee streams. This was offset by a \$102m decrease in the System Fund and reimbursable result, reflecting increased investments in marketing, loyalty and commercial activities together with a decline in revenues driven by the changes to the System Fund arrangement described above, a \$105m increase in key money contract acquisition costs net of repayments, a \$30m increase in net interest paid reflecting the increase in average net debt and \$66m higher tax payments. Working capital and other adjustments of \$56m includes \$214m of cash inflow related to deferred revenue, driven primarily by \$124m related to the loyalty programme and \$100m of upfront cash flows associated with the new US co-brand credit card agreements.
Net capital expenditurea was \$253m (2023: \$146m) and gross capital expenditurea was \$350m (2023: \$242m). Gross capital expenditurea comprised: \$206m of key money contract acquisition costs; \$31m of maintenance; \$68m gross recyclable investments; and \$45m System Fund capital investments. Net capital expenditurea includes offsets from disposals of property, plant and equipment of \$9m, proceeds from other financial assets of \$6m, and \$82m System Fund depreciation and amortisation.
Net debta increased by \$510m from \$2,272m at 31 December 2023 to \$2,782m at 31 December 2024. There were \$1,063m of payments related to ordinary dividends and the share buyback programmes, including transaction costs, during the year. The change in net debta includes adverse net foreign exchange impacts of \$3m and \$42m of other non-cash adjustments.
As at 31 December 2024, the Group had total liquidity of \$2,319m (31 December 2023: \$2,572m), comprising \$1,350m of undrawn bank facilities and \$969m of cash and cash equivalents (net of overdrafts and restricted cash). The change in total liquidity from December 2024 of \$253m is primarily due to net cash outflows of \$511m, offset by net additional bond funding and repayment of currency swaps of \$242m.
The Group currently has \$3,257m of sterling and euro bonds outstanding. The bonds mature in August 2025 (£300m), August 2026 (£350m), May 2027 (€500m), October 2028 (£400m), November 2029 (€600m) and September 2031 (€750m). There are currency swaps in place on the euro bonds, fixing the May 2027 bond at £436m, the November 2029 bond at \$657m and the September 2031 bond at \$834m. The Group currently has senior unsecured long-term credit ratings of BBB from S&P and Baa2 from Moody's.
The Group is further financed by a \$1.35bn syndicated bank revolving credit facility (RCF). The final one-year extension option was exercised during the year and the facility now matures in 2029. There are two financial covenants: interest cover and leverage ratio. Covenants are tested at half year and full year on a trailing 12-month basis. The leverage ratio requires Covenant net debt to Covenant EBITDA below 4.0:1 and the interest cover covenant requires a ratio of Covenant EBITDA to Covenant interest payable above 3.5:1. At 31 December 2024, the leverage ratio was 2.35 and the interest cover ratio was 9.72. See note 10 to the Financial Statements for further information. The RCF was undrawn at 31 December 2024.
The Group is in compliance with all of the applicable financial covenants in its loan documents, none of which are expected to present a material restriction on funding in the near future.
It is management's opinion that the current working capital levels and available facilities are sufficient for the Group's present liquidity requirements.
Total gross revenuea provides a measure of the overall strength of the Group's brands. It comprises total rooms revenue from franchised hotels and total hotel revenue from managed, exclusive partner and owned, leased and managed lease hotels and excludes revenue from the System Fund and reimbursement of costs. Other than owned, leased and managed lease hotels, total gross revenue is not revenue attributable to IHG as it is derived from hotels owned by third parties.
| 12 months ended 31 December | |||
|---|---|---|---|
| 2024 | 2023 | % | |
| \$bn | \$bn | Changeb | |
| Analysed by brand | |||
| InterContinental | 5.3 | 5.1 | 3.3 |
| Kimpton | 1.4 | 1.3 | 5.6 |
| Hotel Indigo | 1.0 | 0.9 | 14.9 |
| Crowne Plaza | 3.7 | 3.7 | 0.5 |
| Holiday Inn Express | 9.6 | 9.2 | 3.8 |
| Holiday Inn | 6.0 | 6.0 | 1.7 |
| Staybridge Suites | 1.3 | 1.2 | 6.6 |
| Candlewood Suites | 0.9 | 0.9 | 5.4 |
| Otherc | 4.2 | 3.3 | 25.0 |
| Total | ____ 33.4 |
____ 31.6 |
____ 5.7 |
| ____ | ____ | ____ | |
| Analysed by ownership type | |||
| Franchisedd (revenue not attributable to IHG) | 21.2 | 20.0 | 5.8 |
| Managed (revenue not attributable to IHG) | 11.7 | 11.1 | 5.3 |
| Owned, leased and managed lease (revenue recognised in Group income statement) |
0.5 | 0.5 | 9.7 |
| Total | ____ 33.4 |
____ 31.6 |
____ 5.7 |
| ____ | ____ | ____ |
Total gross revenue in IHG's system increased by 5.7% (6.5% increase at constant currency) to \$33.4bn, driven by improved trading conditions in many markets and growth in the number of hotels in our system.
a. Definitions for total gross revenue can be found in the 'Key performance measures and non-GAAP measures' section to accompany the above reconciliation to the Financial Statements
b. Year-on-year percentage movement calculated from source figures.
c. Includes Holiday Inn Club Vacations.
d. Includes exclusive partner hotels.
| Full Year 2024 vs 2023 | Q4 2024 vs 2023 | |||||
|---|---|---|---|---|---|---|
| RevPAR | ADR | Occupancy | RevPAR | ADR | Occupancy | |
| Global | 3.0% | 2.1% | 0.6%pts | 4.6% | 2.5% | 1.3%pts |
| Americas | 2.5% | 2.0% | 0.3%pts | 4.6% | 2.9% | 1.0%pts |
| EMEAA | 6.6% | 3.6% | 2.0%pts | 6.9% | 3.8% | 2.1%pts |
| Greater China | (4.8)% | (4.2)% | (0.4)%pts | (2.8)% | (4.6)% | 1.1%pts |
| Full Year 2024 vs 2023 | Q4 2024 vs 2023 | |||||
|---|---|---|---|---|---|---|
| CER (as above) | AER | Difference | CER (as above) | AER | Difference | |
| Global | 3.0% | 2.3% | (0.7)%pts | 4.6% | 3.9% | (0.7)%pts |
| Americas | 2.5% | 2.0% | (0.5)%pts | 4.6% | 3.5% | (1.1)%pts |
| EMEAA | 6.6% | 5.6% | (1.0)%pts | 6.9% | 6.4% | (0.5)%pts |
| Greater China | (4.8)% | (6.1)% | (1.3)%pts | (2.8)% | (2.4)% | 0.4%pts |
a. RevPAR (revenue per available room), ADR (average daily rate) and occupancy are on a comparable basis, based on comparability as at 31 December 2024 and include hotels that have traded in all months in both the current and the prior year. The principle exclusions in deriving these measures are new openings, properties under major refurbishments and removals. See 'Key performance measures and non-GAAP measures' section for further information on the definition of RevPAR.
| Hotels | Rooms | ||||
|---|---|---|---|---|---|
| Global hotel and room count | Change over | Change over | |||
| 2024 | 2023 | 2024 | 2023 | ||
| 31 December | 31 December | 31 December | 31 December | ||
| Analysed by brand | |||||
| Six Senses | 27 | 2 | 1,950 | 189 | |
| Regent | 11 | 1 | 3,212 | 125 | |
| InterContinental | 227 | 5 | 73,784 | 284 | |
| Vignette Collection | 20 | 9 | 3,965 | 1,682 | |
| Kimpton | 77 | (1) | 14,031 | 310 | |
| Hotel Indigo | 169 | 16 | 22,793 | 2,575 | |
| voco | 87 | 25 | 20,376 | 4,869 | |
| HUALUXE | 22 | 2 | 6,002 | 473 | |
| Crowne Plaza | 415 | 7 | 113,624 | 1,392 | |
| EVEN Hotels | 33 | 7 | 5,082 | 1,151 | |
| Holiday Inn Express | 3,237 | 66 | 343,957 | 7,640 | |
| Holiday Inn | 1,249 | 47 | 225,332 | 9,422 | |
| Garner | 23 | 21 | 2,400 | 2,242 | |
| avid hotels | 76 | 9 | 6,802 | 775 | |
| Atwell Suites | 6 | 4 | 556 | 370 | |
| Staybridge Suites | 335 | 10 | 36,523 | 1,203 | |
| Holiday Inn Club Vacations | 30 | - | 9,868 | 342 | |
| Candlewood Suites | 392 | 16 | 34,817 | 1,320 | |
| Iberostar Beachfront Resorts | 55 | 6 | 19,586 | 1,986 | |
| Other | 138 | 14 | 42,465 | 2,572 | |
| Total | _____ 6,629 |
_____ 266 |
_ 987,125 |
_ 40,922 |
|
| Analysed by ownership type | _____ | _____ | _ | _ | |
| Franchiseda | 5,596 | 240 | 718,217 | 37,616 | |
| Managed | 1,017 | 27 | 264,872 | 3,501 | |
| Owned, leased and managed lease | 16 | (1) | 4,036 | (195) | |
| Total | _____ 6,629 |
_____ 266 |
_ 987,125 |
______ 40,922 |
|
| _____ | _____ | _ | ______ |
a. Includes exclusive partner hotels.
| Hotels | Rooms | ||||
|---|---|---|---|---|---|
| Global Pipeline | Change over | Change over | |||
| 2024 | 2023 | 2024 | 2023 | ||
| 31 December | 31 December | 31 December | 31 December | ||
| Analysed by brand | |||||
| Six Senses | 38 | (4) | 2,895 | (162) | |
| Regent | 9 | (2) | 1,987 | (455) | |
| InterContinental | 101 | 1 | 25,692 | 421 | |
| Vignette Collection | 35 | 17 | 6,389 | 4,333 | |
| Kimpton | 61 | 7 | 12,133 | 1,372 | |
| Hotel Indigo | 130 | (2) | 19,431 | (1,508) | |
| voco | 90 | 16 | 15,628 | 2,887 | |
| HUALUXE | 24 | (1) | 6,293 | (50) | |
| Crowne Plaza | 140 | 14 | 35,269 | 2,827 | |
| EVEN Hotels | 32 | (1) | 5,567 | 184 | |
| Holiday Inn Express | 637 | 5 | 79,222 | 1,203 | |
| Holiday Inn | 266 | 20 | 51,677 | 5,776 | |
| Garner | 94 | 89 | 8,767 | 8,435 | |
| avid hotels | 137 | (4) | 10,649 | (928) | |
| Atwell Suites | 54 | 13 | 5,460 | 1,336 | |
| Staybridge Suites | 157 | (7) | 17,315 | (870) | |
| Holiday Inn Club Vacations | - | (2) | - | (832) | |
| Candlewood Suites | 183 | 32 | 14,299 | 2,342 | |
| Iberostar Beachfront Resorts | 7 | 2 | 2,447 | 207 | |
| Other | 15 | 1 | 4,132 | 1,780 | |
| Total | _____ 2,210 |
_____ 194 |
_ 325,252 |
______ 28,298 |
|
| Analysed by ownership type | _____ | _____ | _ | ______ | |
| Franchiseda | 1,598 | 172 | 191,605 | 17,521 | |
| Managed | 611 | 22 | 133,492 | 10,777 | |
| Owned, leased and managed | 1 | - | 155 | - | |
| lease | |||||
| Total | _____ 2,210 |
_____ 194 |
_ 325,252 |
______ 28,298 |
|
| _____ | _____ | _ | ______ |
a. Includes exclusive partner hotels.
Net system size increased by 4.3% year-on-year to 987.1k rooms. During the year, 59.1k rooms (371 hotels) opened, representing an increase of 11.2k rooms (96 hotels) from the prior year, including 10.2k rooms (58 hotels) that were conversions as part of the NOVUM Hospitality agreement. In 2024, 18.2k rooms (105 hotels) left the IHG system resulting in a removals rate of 1.9%, an increase compared to the prior year in which 13.3k rooms (76 hotels) left the system with a removals rate of 1.5%.
At the end of 2024, the global pipeline totalled 325.3k rooms (2,210 hotels), an increase of 28.3k rooms (194 hotels), as signings outpaced openings and terminations.
During the year, 106.2k rooms (714 hotels) were signed, including 17.7k rooms (119 hotels) as part of the initial NOVUM Hospitality agreement, and representing a 27.0k rooms (158 hotels) increase from 2023. Conversions represented around half of signings in 2024.
| AMERICAS | 12 months ended 31 December | ||
|---|---|---|---|
| Americas results | |||
| 2024 | 2023 | % | |
| \$m | \$m | change | |
| Revenue from the reportable segmenta | |||
| Fee business | 979 | 957 | 2.3 |
| Owned, leased and managed lease | 162 | 148 | 9.5 |
| _____ 1,141 |
_____ 1,105 |
_____ 3.3 |
|
| Operating profit from the reportable segmenta | _____ | _____ | _____ |
| Fee business | 795 | 787 | 1.0 |
| Owned, leased and managed lease | 33 | 28 | 17.9 |
| _____ 828 |
_____ 815 |
_____ 1.6 |
|
| Operating exceptional items | 4 | 27 | (85.2) |
| Operating profit | _____ 832 |
_____ 842 |
_____ (1.2) |
| _____ | _____ | _____ |
| Americas Comparable RevPAR movement on previous year | 12 months ended 31 December 2024 |
|---|---|
| Fee business | |
| InterContinental | 7.8% |
| Kimpton | 2.1% |
| Hotel Indigo | 3.1% |
| Crowne Plaza | 4.6% |
| EVEN Hotels | 5.6% |
| Holiday Inn Express | 1.7% |
| Holiday Inn | 2.3% |
| avid hotels | 4.3% |
| Staybridge Suites | 2.5% |
| Candlewood Suites | 0.7% |
| All brands | 2.4% |
RevPAR for 2024 was up +2.5%, with occupancy of 68.6% up +0.3%pts and average daily rate +2.0% higher. Trading improved from Q1 when RevPAR was down -0.3% with an adverse impact from the timing of Easter. This was followed by higher demand in April which, along with more normalised growth in the two subsequent months, resulted in Q2 RevPAR of +3.3%. Q3 RevPAR was +1.7%, with Leisure rooms revenue booked for the key summer vacation quarter only slightly lower than 2023 levels, and Business and Groups well ahead. In Q4, RevPAR was +4.6%, with demand for each of Leisure, Business and Groups showing broadly similar levels of growth. For the year as a whole, booked rooms revenue on a comparable hotel basis for the Americas region saw Leisure ahead by +2%, Business revenue also ahead by +2% and Groups up +7%. By sub-region, reflecting economic stability in the US, its RevPAR for 2024 was +1.7%, and in aggregate across Canada, Latin America and the Caribbean RevPAR was +8.8%.
Revenue from the reportable segmenta increased by \$36m (+3.3%) to \$1,141m. Operating profit decreased by \$10m to \$832m, with the increase in revenue being more than offset by the non-repeat of exceptional income recorded in the prior year (further information on exceptional items can be found in note 5 to the Financial Statements). Operating profit from the reportable segmenta increased by \$13m (+1.6%) to \$828m.
Fee business revenuea increased by \$22m (+2.3%) to \$979m, with RevPAR up +2.4%. There were \$21m of incentive management fees earned (2023: \$21m). Fee business operating profita increased by \$8m (+1.0%) to \$795m, driven by the trading performance and net system size growth, partially offset by certain one-time items and cost investment. This led to fee margina reducing to 81.2% compared to 82.2% in 2023.
Owned, leased and managed lease revenue increased by \$14m (+9.5%) to \$162m, with RevPAR up +11.2%, reflecting the specific trading environments related to this small portfolio of just four hotels (only three of which were comparable for RevPAR). This led to an owned, leased and managed lease operating profit increase of \$5m (+17.9%) to \$33m.
a. Definitions for non-GAAP measures can be found in the 'Key performance measures and non-GAAP measures' section, along with reconciliations of these measures to the most directly comparable line items within the Financial Statements.
| Hotels | Rooms | ||||
|---|---|---|---|---|---|
| Americas hotel and room count | Change over | Change over | |||
| 2024 | 2023 | 2024 | 2023 | ||
| 31 December | 31 December | 31 December | 31 December | ||
| Analysed by brand | |||||
| Six Senses | 2 | 1 | 81 | 71 | |
| Regent | 1 | 1 | 167 | 167 | |
| InterContinental | 45 | 2 | 16,272 | 598 | |
| Vignette Collection | 2 | 1 | 591 | 236 | |
| Kimpton | 61 | (2) | 11,083 | 188 | |
| Hotel Indigo | 75 | 3 | 10,128 | 550 | |
| voco | 19 | 7 | 2,065 | 766 | |
| Crowne Plaza | 104 | (2) | 26,356 | (786) | |
| EVEN Hotels | 22 | 3 | 3,122 | 378 | |
| Holiday Inn Express | 2,526 | 17 | 230,749 | 1,996 | |
| Holiday Inn | 677 | (11) | 109,526 | (2,228) | |
| Garner | 10 | 8 | 755 | 597 | |
| avid hotels | 76 | 9 | 6,802 | 775 | |
| Atwell Suites | 6 | 4 | 556 | 370 | |
| Staybridge Suites | 312 | 9 | 32,773 | 1,098 | |
| Holiday Inn Club Vacations | 30 | - | 9,868 | 342 | |
| Candlewood Suites | 392 | 16 | 34,817 | 1,320 | |
| Iberostar Beachfront Resorts | 24 | 1 | 9,267 | 240 | |
| Other | 107 | 10 | 23,016 | 1,722 | |
| Total | _____ 4,491 |
____ 77 |
_ 527,994 |
_____ 8,400 |
|
| Analysed by ownership type | _____ | ____ | _ | _____ | |
| Franchiseda | 4,319 | 77 | 491,506 | 8,558 | |
| Managed | 168 | - | 35,151 | (158) | |
| Owned, leased and managed lease | 4 | - | 1,337 | - | |
| Total | _____ 4,491 |
____ 77 |
_ 527,994 |
______ 8,400 |
|
| _____ | ____ | _ | ______ |
a. Includes exclusive partner hotels.
| Hotels | Rooms | |||
|---|---|---|---|---|
| Americas Pipeline | Change over | Change over | ||
| 2024 | 2023 | 2024 | 2023 | |
| 31 December | 31 December | 31 | 31 | |
| December | December | |||
| Analysed by brand | ||||
| Six Senses | 9 | 1 | 660 | 186 |
| Regent | - | (1) | - | (167) |
| InterContinental | 11 | (1) | 2,786 | 78 |
| Vignette Collection | 4 | 1 | 475 | 214 |
| Kimpton | 30 | 2 | 5,685 | 167 |
| Hotel Indigo | 27 | (4) | 3,238 | (1,099) |
| voco | 23 | 11 | 2,612 | 1,229 |
| Crowne Plaza | 6 | (3) | 1,044 | (1,166) |
| EVEN Hotels | 8 | (3) | 949 | (290) |
| Holiday Inn Express | 337 | (12) | 32,028 | (1,435) |
| Holiday Inn | 65 | (7) | 7,790 | (849) |
| Garner | 43 | 38 | 3,495 | 3,163 |
| avid hotels | 137 | (4) | 10,649 | (928) |
| Atwell Suites | 52 | 11 | 5,222 | 1,098 |
| Staybridge Suites | 142 | (3) | 14,974 | (377) |
| Holiday Inn Club | - | (2) | - | (832) |
| Vacations | ||||
| Candlewood Suites | 175 | 24 | 13,199 | 1,242 |
| Iberostar Beachfront | 6 | 1 | 2,176 | (64) |
| Resorts | ||||
| Other | 14 | - | 2,352 | - |
| _____ | ____ | ______ | _____ | |
| Total | 1,089 _____ |
49 ____ |
109,334 ______ |
170 ____ |
| Analysed by ownership type | ||||
| Franchiseda | 1,043 | 49 | 102,075 | 86 |
| Managed | 46 | - | 7,259 | 84 |
| Total | _____ 1,089 |
____ 49 |
______ 109,334 |
______ 170 |
| _____ | ____ | __ ____ |
a. Includes exclusive partner hotels.
Gross system size growth was +3.2% for the year with the opening of 16.8k rooms (140 hotels) in the Americas region, of which 6.5k rooms (54 hotels) opened in Q4. Openings in the year included 55 hotels across the Holiday Inn Brand Family (notable examples including Holiday Inn Express New York Bronx) and a further 25 properties across the Staybridge Suites and Candlewood Suites brands. Eight Garner conversions took the portfolio of open hotels to ten, with this newest brand having become franchise-ready in the US relatively recently in September 2023. There were nine more avid hotels added to reach 76 open (with 137 more in the pipeline), and the next four Atwell Suites openings took this brand to six across its initial vibrant and diverse locations (with 52 more in the pipeline). The voco brand had a strong year of seven openings, taking its portfolio to 19 and with 23 more in the pipeline as it rolls out further in the region. Openings across our Luxury & Lifestyle brands, included the first Six Senses resort in the Caribbean in Grenada, the return of Regent to the region with the flagship Santa Monica Beach property, two InterContinental hotels (including entering the Pacific Northwest with Seattle Bellevue), three Hotel Indigo properties (including its first in the Caribbean in Grand Cayman), and five Kimpton properties (including Denver, San Antonio, the Dominican Republic and the Mas Olas Resort & Spa on Mexico's Baja peninsula).
Net system size grew +1.6% for the year, after removals of 8.4k rooms (63 hotels) representing a 1.6% removal rate.
There were 26.6k rooms (283 hotels) signed during the year, including 9.7k rooms (106 hotels) during Q4. There was excellent demand for Garner in its first full year with 46 signings, and 83 across the Holiday Inn Brand Family (notable examples including a Holiday Inn Resort at the Grand Canyon). There were 90 signings across our Suites brands, including 15 for Atwell Suites as interest in the brand continues to build, and among other notable examples was a Staybridge Suites and EVEN Hotels dual-brand property in Orlando, Florida. For avid hotels, 22 signings included further examples of dual-branded properties with Candlewood Suites (such as Bozeman, Montana) and further international growth for the brand with three more in Mexico. There were 16 signings for voco, including numerous quick-to-market conversions. Signings for our Luxury & Lifestyle brands included another strong year for Kimpton with eight more signings across the region in 2024 (including a further flagship for the brand in Orlando, and others such as Tulum, Mexico, and Little Rock), three Six Senses (including Telluride in the Colorado Rockies, and Riverstone Estate in Foxburg, Pennsylvania). Two signings for InterContinental also included a large flagship property for this brand in Orlando, as well as Palm Springs. Following the acceleration in growth achieved in 2023 with the expansion of our development presence outside of the US, in total there were 38 further hotel signings across Canada, Mexico, Latin America and the Caribbean, representing 15% of rooms signed for the overall region.
The pipeline stands at 109.3k rooms (1,089 hotels), which represents 21% of the current system size in the region.
| EMEAA results | |||
|---|---|---|---|
| 2024 | 2023 | % | |
| \$m | \$m | change | |
| Revenue from the reportable segmenta | |||
| Fee business | 395 | 354 | 11.6 |
| Owned, leased and managed lease | 353 | 323 | 9.3 |
| ____ 748 |
____ 677 |
____ 10.5 |
|
| Operating profit/(loss) from the reportable segmenta | ____ | ____ | ____ |
| Fee business | 258 | 214 | 20.6 |
| Owned, leased and managed lease | 12 | 1 | 1,100.0 |
| ____ 270 |
____ 215 |
____ 25.6 |
|
| Operating exceptional items | (4) | 1 | NMb |
| Operating profit | ____ 266 |
____ 216 |
____ 23.1 |
| ____ | ____ | ____ |
| 12 months ended 31 December 2024 |
|---|
| 10.7% |
| 7.9% |
| 6.1% |
| 7.3% |
| 5.6% |
| 5.0% |
| 5.3% |
| 6.3% |
| 6.5% |
All brands 11.9%
RevPAR for 2024 grew +6.6%, with occupancy of 71.8% up +2.0%pts and average daily rate +3.6% higher. Trading in Q1 saw RevPAR +8.9%, which was followed by +6.3% in Q2 as strong demand continued despite normalising across this diverse region as more countries exceeded pre-Covid levels of performance. Further normalisation resulted in Q3 RevPAR of +4.9%, but with Q4 then seeing an acceleration in demand with RevPAR growing +6.9%. By major geographic sub-markets, 2024 RevPAR saw growth rates of: +10.9% in East Asia & Pacific, which included the benefit of inbound leisure travel from Greater China; +5.7% in the Middle East; +5.9% in Continental Europe; and +2.3% in the UK. The breadth of range in performance primarily reflects the differing stages of recovery already achieved in the prior year. Booked rooms revenue on a comparable hotel basis for the EMEAA region as a whole in 2024 saw Leisure growth of +6%, Business also of +6% and Groups growth of +9%.
Revenue from the reportable segmenta increased by \$71m (+10.5%) to \$748m. Operating profit increased by \$50m to \$266m, driven by the increase in revenue but partially offset by the movement in exceptional items (further information on exceptional items can be found in note 5 to the Financial Statements). Operating profit from the reportable segmenta increased by \$55m (+25.6%) to \$270m.
Fee business revenuea increased by \$41m (+11.6%) to \$395m, with RevPAR up +6.5%. There were \$118m of incentive management fees earned (2023: \$101m). Fee business operating profita increased by \$44m (+20.6%) to \$258m and fee margina increased to 65.3% compared to 60.5% in 2023, with positive operating leverage driven by the trading performance and system growth.
Owned, leased and managed lease revenue increased by \$30m (+9.3%) to \$353m, with RevPAR up +11.9%. As the trading conditions of this largely urban-centred portfolio of 13 hotels further improved in 2024, operating profit of \$12m was achieved compared to \$1m in 2023. Excluding the results of one Regent hotel, which exited in 2024 upon lease expiration, revenue increased by \$32m and operating profit increased by \$12m, year-on-year.
a. Definitions for non-GAAP measures can be found in the 'Key performance measures and non-GAAP measures' section, along with reconciliations of these measures to the most directly comparable line
items within the Financial Statements. b. Percentage change considered not meaningful, such as where a positive balance in the latest period is comparable to a negative or zero balance in the prior period.
| Hotels | Rooms | ||||
|---|---|---|---|---|---|
| EMEAA hotel and room count | Change over | Change over | |||
| 2024 | 2023 | 2024 | 2023 | ||
| 31 December | 31 December | 31 December | 31 December | ||
| Analysed by brand | |||||
| Six Senses | 24 | 1 | 1,739 | 118 | |
| Regent | 4 | - | 991 | (45) | |
| InterContinental | 121 | 2 | 33,945 | (498) | |
| Vignette Collection | 13 | 6 | 2,109 | 903 | |
| Kimpton | 13 | 1 | 2,498 | 122 | |
| Hotel Indigo | 66 | 8 | 8,204 | 1,175 | |
| voco | 51 | 13 | 14,608 | 2,817 | |
| Crowne Plaza | 181 | 3 | 43,890 | 605 | |
| Holiday Inn Express | 360 | 11 | 52,835 | 1,347 | |
| Holiday Inn | 425 | 43 | 77,395 | 8,065 | |
| Garner | 13 | 13 | 1,645 | 1,645 | |
| Staybridge Suites | 23 | 1 | 3,750 | 105 | |
| Iberostar Beachfront Resorts | 31 | 5 | 10,319 | 1,746 | |
| Other | 24 | 5 | 12,546 | 1,102 | |
| Total | _____ 1,349 |
____ 112 |
_ 266,474 |
______ 19,207 |
|
| Analysed by ownership type | _____ | ____ | _ | ______ | |
| Franchiseda | 931 | 92 | 156,538 | 15,708 | |
| Managed | 406 | 21 | 107,237 | 3,694 | |
| Owned, leased and managed lease | 12 | (1) | 2,699 | (195) | |
| Total | _____ 1,349 |
____ 112 |
_ 266,474 |
______ 19,207 |
|
| _____ | ____ | _ | ______ |
a. Includes exclusive partner hotels.
| Hotels | Rooms | |||
|---|---|---|---|---|
| EMEAA Pipeline | Change over | Change over | ||
| 2024 | 2023 | 2024 | 2023 | |
| 31 December | 31 December | 31 December | 31 December | |
| Analysed by brand | ||||
| Six Senses | 28 | (2) | 2,181 | (169) |
| Regent | 7 | - | 1,460 | (8) |
| InterContinental | 60 | 4 | 14,526 | 1,016 |
| Vignette Collection | 25 | 11 | 4,379 | 2,856 |
| Kimpton | 15 | - | 2,254 | (111) |
| Hotel Indigo | 49 | (4) | 7,208 | (1,101) |
| voco | 50 | (1) | 9,416 | 509 |
| Crowne Plaza | 59 | 10 | 14,021 | 2,492 |
| Holiday Inn Express | 89 | - | 14,339 | 1,030 |
| Holiday Inn | 114 | 28 | 22,819 | 6,697 |
| Garner | 51 | 51 | 5,272 | 5,272 |
| Staybridge Suites | 15 | (4) | 2,341 | (493) |
| Candlewood Suites | 8 | 8 | 1,100 | 1,100 |
| Iberostar Beachfront Resorts | 1 | 1 | 271 | 271 |
| Other | 1 | 1 | 1,780 | 1,780 |
| Total | ____ 572 |
____ 103 |
______ 103,367 |
______ 21,141 |
| Analysed by ownership type | ____ | ____ | ______ | ______ |
| Franchiseda | 264 | 90 | 37,572 | 13,056 |
| Managed | 307 | 13 | 65,640 | 8,085 |
| Owned, leased and managed lease | 1 | - | 155 | - |
| ____ | ____ | ______ | ______ | |
| Total | 572 | 103 | 103,367 | 21,141 |
| ____ | ____ | ______ | ______ |
a. Includes exclusive partner hotels.
Gross system size growth was +9.6% for the year with the opening of 23.6k rooms (134 hotels) in the EMEAA region, of which 10.6k rooms (59 hotels) opened in Q4. Openings in the year included the first 58 conversions (10.2k rooms) as part of the NOVUM Hospitality agreement through which 108 open hotels (15.3k rooms) and 11 under development (2.4k rooms) are expected to join IHG's system between 2024 and 2028. A further five Iberostar Beachfront Resort properties were also added as part of the long-term commercial agreement established in November 2022. There were 14 Holiday Inn Express properties opened, and nine for Crowne Plaza. The first 13 Garner openings in the region included nine as part of the NOVUM conversions, the first three in Japan and the first in the UK. Further reflecting a strong year for conversions, there were 14 openings for the voco brand, while there were six for the Vignette Collection each in different countries including the first in the UK. Other Luxury & Lifestyle openings included five for InterContinental (in France, Greece, New Zealand, Vietnam and the UAE), the first Six Senses property in Japan, Regent Bali Canggu (the first for the brand in Indonesia), Kimpton BEM Budapest in Hungary (one of our first Low Carbon Pioneer hotels) and eight for Hotel Indigo.
Net system size grew +7.8% for the year, after removals of 4.4k rooms (22 hotels) representing a 1.8% removal rate. The initial 58 NOVUM Hospitality properties contributed +4.1% to the system growth for the year.
There were 50.3k rooms (271 hotels) signed during the year, including 12.6k rooms (56 hotels) during Q4. The NOVUM Hospitality agreement added 17.7k of room signings (119 hotels); 52 properties are a brand collaboration with Holiday Inn, while 56 hotels are converting to Garner and 11 to Candlewood Suites, representing European debuts for these two brands. During the year there were eight further signings for the new Garner conversion brand and 56 other signings across the Holiday Inn Brand Family (including Holiday Inn Express Paris Orly Airport). It was also a notably strong year for Crowne Plaza with 20 signings, voco with 18 and Vignette Collection with 17, with the latter including Ciel in Dubai, the world's tallest all-hotel tower, and Noku Maldives. Across our other Luxury & Lifestyle brands, there were 10 signings for InterContinental, nine for Hotel Indigo (including a dual-branded property with voco at Waterloo, Central London), two for Kimpton and one each for Six Senses and Regent; with 40 properties and 7.3k rooms signed across our six Luxury & Lifestyle brands, this represented 22% of all rooms in the region (adjusting for the NOVUM signings). Aside from the progress in Germany as a priority growth market driven by the NOVUM agreement, other signings during the year included 17 in India (including the InterContinental Kodaikanal Resort), and 12 in each of Japan and Saudi Arabia. Conversions represented 44% of all signings in the region (adjusting for the NOVUM signings).
The pipeline stands at 103.4k rooms (572 hotels), which represents 39% of the current system size in the region.
| 12 months ended 31 December | |||
|---|---|---|---|
| Greater China results | 2024 \$m |
2023 \$m |
% change |
| Revenue from the reportable segmenta | |||
| Fee business | 161 | 161 | 0.0 |
| ____ 161 |
____ 161 |
____ 0.0 |
|
| Operating profit from the reportable segmenta | ____ | ____ | ____ |
| Fee business | 98 | 96 | 2.1 |
| Operating profit | ____ 98 |
____ 96 |
____ 2.1 |
| ____ | ____ | ____ |
| Fee business | |
|---|---|
| Regent | 4.7% |
| InterContinental | (6.7)% |
| Hotel Indigo | (3.7)% |
| HUALUXE | (0.7)% |
| Crowne Plaza | (5.2)% |
| Holiday Inn Express | (4.6)% |
| Holiday Inn | (4.0)% |
| All brands | (4.8)% |
RevPAR for 2024 was down -4.8%, with occupancy of 60.4% down -0.4%pts and average daily rate -4.2% lower. Q1 RevPAR of +2.5% was followed by -7.0% in Q2 as comparatives became sequentially tougher due to the timing of resurgent domestic demand in 2023 after the lifting of travel restrictions. In 2024 the industry has experienced shifting patterns of demand mix, including an expansion of outbound Leisure travel to other markets, particularly elsewhere in Asia Pacific as seen benefiting demand in our EMEAA region. Comparatives became further sequentially tougher in Q3, with that quarter in 2023 marking when RevPAR first exceeded 2019 levels, with comparatives then easing in Q4. As a result, RevPAR was -10.3% YOY in Q3, improving to -2.8% in Q4. The trading patterns over the course of 2024 have therefore reflected greater normalisation in demand. Booked rooms revenue on a comparable hotel basis for 2024 still saw Leisure up +1%, as returning international inbound stays into higher tier locations more than offset significantly reduced revenue in lower tiered resort locations. Business rooms revenue was down -5% and Groups down -3%.
Revenue from the reportable segmenta was unchanged at \$161m, with the effect of negative RevPAR in the comparable estate offset by the incremental revenue from system growth. There were \$39m of incentive management fees earned (2023: \$46m). Operating profit increased by \$2m (+2.1%) to \$98m and fee margina increased to 60.9% compared to 59.6% in 2023, supported by scale efficiencies achieved in the year.
| Hotels | Rooms | |||
|---|---|---|---|---|
| Greater China hotel and room count | Change over | Change over | ||
| 2024 | 2023 | 2024 | 2023 | |
| 31 December | 31 December | 31 December | 31 December | |
| Analysed by brand | ||||
| Six Senses | 1 | - | 130 | - |
| Regent | 6 | - | 2,054 | 3 |
| InterContinental | 61 | 1 | 23,567 | 184 |
| Vignette Collection | 5 | 2 | 1,265 | 543 |
| Kimpton | 3 | - | 450 | - |
| Hotel Indigo | 28 | 5 | 4,461 | 850 |
| voco | 17 | 5 | 3,703 | 1,286 |
| HUALUXE | 22 | 2 | 6,002 | 473 |
| Crowne Plaza | 130 | 6 | 43,378 | 1,573 |
| EVEN Hotels | 11 | 4 | 1,960 | 773 |
| Holiday Inn Express | 351 | 38 | 60,373 | 4,297 |
| Holiday Inn | 147 | 15 | 38,411 | 3,585 |
| Other | 7 | (1) | 6,903 | (252) |
| Total | _____ 789 |
_____ 77 |
_ 192,657 |
______ 13,315 |
| Analysed by ownership type | _____ | _____ | _ | ______ |
| Franchised | 346 | 71 | 70,173 | 13,350 |
| Managed | 443 | 6 | 122,484 | (35) |
| Total | _____ 789 |
_____ 77 |
_ 192,657 |
______ 13,315 |
| _____ | _____ | _ | ______ |
| Hotels | Rooms | ||||
|---|---|---|---|---|---|
| Greater China Pipeline | Change over | Change over | |||
| 2024 | 2023 | 2024 | 2023 | ||
| 31 December | 31 December | 31 December | 31 December | ||
| Analysed by brand | |||||
| Six Senses | 1 | (3) | 54 | (179) | |
| Regent | 2 | (1) | 527 | (280) | |
| InterContinental | 30 | (2) | 8,380 | (673) | |
| Vignette Collection | 6 | 5 | 1,535 | 1,263 | |
| Kimpton | 16 | 5 | 4,194 | 1,316 | |
| Hotel Indigo | 54 | 6 | 8,985 | 692 | |
| voco | 17 | 6 | 3,600 | 1,149 | |
| HUALUXE | 24 | (1) | 6,293 | (50) | |
| Crowne Plaza | 75 | 7 | 20,204 | 1,501 | |
| EVEN Hotels | 24 | 2 | 4,618 | 474 | |
| Holiday Inn Express | 211 | 17 | 32,855 | 1,608 | |
| Holiday Inn | 87 | (1) | 21,068 | (72) | |
| Atwell Suites | 2 | 2 | 238 | 238 | |
| Total | _____ 549 |
_____ 42 |
_ 112,551 |
______ 6,987 |
|
| Analysed by ownership type | _____ | _____ | _ | ______ | |
| Franchised | 291 | 33 | 51,958 | 4,379 | |
| Managed | 258 | 9 | 60,593 | 2,608 | |
| Total | _____ 549 |
_____ 42 |
_ 112,551 |
______ 6,987 |
|
| _____ | _____ | _ | ______ |
Gross system size growth was +10.4% for the year with the opening of 18.7k rooms (97 hotels) in the Greater China region, of which 6.5k (34 hotels) opened in Q4. Openings in the year saw 66 for the Holiday Inn Brand Family (including key locations such as Holiday Inn Express Shanghai Changfeng Park, Holiday Inn Express Shenzhen Futian Center, and Holiday Inn Resort Kanas Hemu) and nine further Crowne Plaza properties, including at Shanghai Snow World, the world's largest indoor ski resort. As other brands scale in the region, there were five further voco properties opened, four EVEN Hotels and three HUALUXE properties (including Shenzhen Bao'an). Further strengthening IHG's leading position in Luxury & Lifestyle, there were five Hotel Indigo properties added (taking the portfolio to 28), three more for InterContinental (taking the portfolio to 61) and two further openings for Vignette Collection (including at the Shanghai Snow World complex). Conversions accounted for 25% of all room openings in the year.
Net system size growth was +7.4% for the year, after removals of 5.4k rooms (20 hotels) representing a 3.0% removal rate.
There were 29.4k rooms (160 hotels) signed during the year, including 7.7k rooms (39 hotels) during Q4. During the year there were 73 hotel signings for Holiday Inn Express and 20 for Holiday Inn, growing their pipelines to 211 and 87, respectively, 17 Crowne Plaza signings and a further 11 for voco. Particularly notable signings included a Holiday Inn Express and Crowne Plaza at Beijing Tongzhou, which will serve the Universal Studios resort. The Atwell Suites brand was also launched in the region, with the first two signings already achieved in Shenzhen and Hangzhou. There were 27 signings across our Luxury & Lifestyle brands, including 12 for Hotel Indigo, seven for Vignette Collection (which contributed to conversions representing 33% of all signings in the year), five for Kimpton (including Kimpton Wuxi Liangxi and Kimpton Guangzhou Pearl River), and three for InterContinental which sees the pipeline for the brand reach 30 in addition to the 61 already open in the region. Our six Luxury & Lifestyle brands represent around 20% of both the existing system size and the pipeline in the region.
The 97 hotel openings and 160 hotel signings in the region in 2024 both represented all-time record achievements. In this critically important growth market, in recent weeks we also celebrated opening our 800th hotel as well as the 50th anniversary of IHG in Greater China.
The pipeline stands at 112.6k rooms (549 hotels), which represents 58% of the current system size in the region.
| 12 months ended 31 December | |||
|---|---|---|---|
| Central results | 2024 \$m |
2023 \$m |
% change |
| Revenue from the reportable segmenta | |||
| Fee business | 239 | 200 | 19.5 |
| Insurance activities | 23 | 21 | 9.5 |
| _____ 262 |
_____ 221 |
_____ 18.6 |
|
| Gross costs | _____ | _____ | _____ |
| Fee business | (305) | (305) | 0.0 |
| Insurance activities | (29) | (23) | 26.1 |
| _____ (334) |
_____ (328) |
_____ 1.8 |
|
| Operating loss from the reportable segmenta | _____ | _____ | _____ |
| Fee business | (66) | (105) | (37.1) |
| Insurance activities | (6) | (2) | 200.0 |
| _____ (72) |
_____ (107) |
_____ (32.7) |
|
| _____ | _____ | _____ |
Central revenue is mainly comprised of technology fee income, revenue from insurance activities, co-brand licensing fees and, from 2024, a portion of revenue from the consumption of certain IHG One Rewards points. Central revenue increased by \$41m (18.6%) to \$262m. This was primarily driven by the new co-brand credit card agreements and changes to the System Fund arrangement in 2024 in which a portion of the revenue from the sale of certain loyalty points, together with certain other ancillary revenues, are now being reported within revenue from fee business. These changes applied to 50% of proceeds from those point sales in 2024 and will increase to 100% from 1 January 2025.
Gross costs increased by \$6m (1.8%) year-on-year, driven by significant individual claims in the insurance programme.
The resulting \$72m operating loss was a decrease of \$35m year-on-year.
a. Definitions for non-GAAP measures can be found in the 'Key performance measures and non-GAAP measures' section, along with reconciliations of these measures to the most directly comparable line items within the Financial Statements.
In addition to performance measures directly observable in the Financial Statements (International Financial Reporting Standards "IFRS" measures), certain financial measures are presented when discussing the Group's performance which are not measures of financial performance or liquidity under IFRS. In management's view, these measures provide investors and other stakeholders with an enhanced understanding of IHG's operating performance, profitability, financial strength and funding requirements. These measures do not have standardised meanings under IFRS, and companies do not necessarily calculate these in the same way as each other. As these measures exclude certain items (for example impairment and the costs of individually significant legal cases or commercial disputes) they may be materially different to the measures prescribed by IFRS and may result in a more favourable view of performance. Accordingly, they should be viewed as complementary to, and not as a substitute for, the measures prescribed by IFRS and as included in the Financial Statements.
RevPAR is the primary metric used by management to track hotel performance across regions and brands. RevPAR is also a commonly used performance measure in the hotel industry.
RevPAR comprises IHG's System rooms revenue divided by the number of room nights available and can be derived from occupancy rate multiplied by average daily rate (ADR). ADR is rooms revenue divided by the number of room nights sold.
References to RevPAR, occupancy and ADR are presented on a comparable basis, comprising groupings of hotels that have traded in all months in both the current and comparable year. The principal exclusions in deriving this measure are new hotels (including those acquired), hotels closed for major refurbishment and hotels sold in either of the comparable years.
RevPAR and ADR are quoted at a constant US\$ exchange rate, in order to allow a better understanding of the comparable year-on-year trading performance excluding distortions created by fluctuations in currency movements.
Total gross revenue is revenue not wholly attributable to IHG, however, management believes this measure is meaningful to investors and other stakeholders as it provides a measure of System performance, giving an indication of the strength of IHG's brands and the combined impact of IHG's growth strategy and RevPAR performance.
Total gross revenue refers to revenue which IHG has a role in driving and from which IHG derives an income stream.
Total gross revenue comprises:
Other than total hotel revenue from owned, leased and managed lease hotels, total gross revenue is not revenue attributable to IHG as these managed, franchised and exclusive partner hotels are owned by third parties.
Total gross revenue is used to describe this measure as it aligns with terms used in the Group's management, franchise and exclusive partner agreements and therefore is well understood by owners and other stakeholders.
Revenue and operating profit from (1) fee business, (2) owned, leased and managed lease hotels, and (3) insurance activities are described as 'revenue from reportable segments' and 'operating profit from reportable segments', respectively, within note 3 to the Financial Statements. These measures are presented insofar as they relate to each of the Group's regions and its Central functions. Management believes revenue and operating profit from reportable segments are meaningful to investors and other stakeholders as they exclude the following elements and reflect how management monitors the business:
In further discussing the Group's performance in respect of revenue and operating profit, additional non-IFRS measures are used and explained further below:
Operating profit measures are, by their nature, before interest and tax. The Group's reported operating profit additionally excludes fair value changes in contingent purchase consideration, which relates to financing of acquisitions. Management believes such measures are useful for investors and other stakeholders when comparing performance across different companies as interest and tax can vary widely across different industries or among companies within the same industry. For example, interest expense can be highly dependent on a company's capital structure, debt levels and credit ratings. In addition, the tax positions of companies can vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the various jurisdictions in which they operate.
Although management believes these measures are useful to investors and other stakeholders in assessing the Group's ongoing financial performance and provide improved comparability between periods, there are limitations in their use as compared to measures of financial performance under IFRS. As such, they should not be considered in isolation or viewed as a substitute for IFRS measures. In addition, these measures may not necessarily be comparable to other similarly titled measures of other companies due to potential inconsistencies in the methods of calculation.
These measures adjust revenue from reportable segments and operating profit from reportable segments, respectively, to exclude revenue and operating profit generated by owned, leased and managed lease hotels which have been disposed, and significant liquidated damages, which are not comparable year-on-year and are not indicative of the Group's ongoing profitability. The revenue and operating profit of current year acquisitions are also excluded as these obscure underlying business results and trends when comparing to the prior year. In addition, in order to remove the impact of fluctuations in foreign exchange, which would distort the comparability of the Group's operating performance, prior year measures are restated at constant currency using current year exchange rates.
Management believes these are meaningful to investors and other stakeholders to better understand comparable year-onyear trading and enable assessment of the underlying trends in the Group's financial performance.
Underlying fee revenue is used to calculate underlying fee revenue growth. Underlying fee revenue is calculated on the same basis as underlying revenue as described above but for the fee business only.
Management believes underlying fee revenue is meaningful to investors and other stakeholders as an indicator of IHG's ability to grow the core fee-based business, aligned to IHG's asset-light strategy.
Fee margin is presented at actual exchange rates and is a measure of the profit arising from fee revenue. Fee margin is calculated by dividing 'fee operating profit' by 'fee revenue'. Fee revenue and fee operating profit are calculated from revenue from reportable segments and operating profit from reportable segments, as defined above, adjusted to exclude revenue and operating profit from the Group's owned, leased and managed lease hotels as well as from insurance activities and significant liquidated damages.
Management believes fee margin is meaningful to investors and other stakeholders as an indicator of the sustainable longterm growth in the profitability of IHG's core fee-based business, as the scale of IHG's operations increases with growth in IHG's system size.
Adjusted interest is presented before exceptional items and excludes foreign exchange gains/losses primarily related to the Group's internal funding structure and the following items of interest which are recorded within the System Fund:
Given results related to the System Fund are excluded from adjusted measures used by management, these are excluded from adjusted interest and adjusted earnings per ordinary share (see below).
The exclusion of foreign exchange gains/losses provides greater comparability with covenant interest as calculated under the terms of the Group's revolving credit facility.
Management believes adjusted interest is a meaningful measure for investors and other stakeholders as it provides an indication of the comparable year-on-year expense associated with financing the business including the interest on any balance held on behalf of the System Fund.
Adjusted tax excludes the impact of foreign exchange gains/losses, exceptional items, the System Fund and fair value gains/losses on contingent consideration.
Foreign exchange gains/losses vary year-on-year depending on the movement in exchange rates, and fair value gains/losses on contingent consideration and exceptional items also vary year-on-year. These can impact the current year's tax charge. The System Fund (including interest and tax) is not managed to a surplus or deficit for IHG over the longer term and is, in general, not subject to tax. Management believes removing these from both profit and tax provides a better view of the Group's underlying tax rate on ordinary operations and aids comparability year-on-year, thus providing a more meaningful understanding of the Group's ongoing tax charge.
Adjusted earnings per ordinary share adjusts the profit available for equity holders used in the calculation of basic earnings per share to remove the System Fund and reimbursable result, interest attributable to the System Fund and foreign exchange gains/losses as excluded in adjusted interest (above), change in fair value of contingent purchase consideration, exceptional items, and the related tax impacts of such adjustments and exceptional tax.
Management believes that adjusted earnings per share is a meaningful measure for investors and other stakeholders as it provides a more comparable earnings per share measure aligned with how management monitors the business.
Net debt is used in the monitoring of the Group's liquidity and capital structure and is used by management in the calculation of the key ratios attached to the Group's bank covenants and with the objective of maintaining an investment grade credit rating. Net debt is used by investors and other stakeholders to evaluate the financial strength of the business.
Net debt comprises loans and other borrowings, lease liabilities, the principal amounts payable and receivable on maturity of derivatives swapping debt values, less cash and cash equivalents. A summary of the composition of net debt is included in note 10 to the Financial Statements.
One of the key measures used by the Group in monitoring its debt and capital structure is the net debt: adjusted EBITDA ratio, which is managed with the objective of maintaining an investment grade credit rating. The Group has a stated aim of targeting this ratio at 2.5-3.0x. Adjusted EBITDA is defined as cash flow from operations, excluding cash flows relating to exceptional items, cash flows arising from the System Fund and reimbursable result, other non-cash adjustments to operating profit or loss, working capital and other adjustments, and contract acquisition costs.
Adjusted EBITDA is useful to investors as an approximation of operational cash flow generation and is also relevant to the Group's banking covenants, which use Covenant EBITDA in calculating the leverage ratio. Details of covenant levels and performance against these are provided in note 10 to the Financial Statements.
These measures have limitations as they omit certain components of the overall cash flow statement. They are not intended to represent IHG's residual cash flow available for discretionary expenditures, nor do they reflect the Group's future capital commitments. These measures are used by many companies, but there can be differences in how each company defines the terms, limiting their usefulness as a comparative measure. Therefore, it is important to view these measures only as a complement to the Group statement of cash flows.
Adjusted free cash flow is net cash from operating activities adjusted for: (1) the inclusion of the cash outflow arising from the purchase of shares by employee share trusts reflecting the requirement to satisfy incentive schemes which are linked to operating performance; (2) the inclusion of gross maintenance capital expenditure; (3) the exclusion of cash flows relating to exceptional items; and (4) where cash flows are split between categories in the Group statement of cash flows, cash flows from investing or financing activities may be included or excluded in adjusted free cash flow to maintain consistency of the measure. This includes: (a) the inclusion of the principal element of lease payments; (b) the exclusion of payments of deferred or contingent purchase consideration included within net cash from operating activities; (c) the exclusion of interest receipts related to owner loans within net cash from operating activities (d) the exclusion of recyclable investments in contract acquisition costs within net cash from operating activities; (e) the inclusion of payments and repayments related to investments supporting the Group's insurance activities; (f) the inclusion of finance lease income relating to sub-leases where payments on the headlease are included in (a); (g) the exclusion of any lease incentives recorded within operating activities.
Management believes adjusted free cash flow is a useful measure for investors and other stakeholders as it represents the cash available to invest back into the business to drive future growth and pay the ordinary dividend, with any surplus being available for additional returns to shareholders. It is a key component in measuring the ongoing viability of our business and is a key reference point to our investment case.
Gross capital expenditure represents the consolidated capital expenditure of IHG inclusive of System Fund capital investments. Gross capital expenditure is defined as net cash from investing activities, adjusted to include contract acquisition costs and to exclude payments and repayments related to investments supporting the Group's insurance activities. In order to demonstrate the capital outflow of the Group, cash flow receipts such as those arising from disposals and distributions from associates and joint ventures, and finance lease income, are excluded. Lease incentives and similar contributions received are included in gross capital expenditure as they directly reduce the Group's outlay. The measure also excludes any material investments made in acquiring businesses, including any subsequent payments of deferred or contingent purchase consideration included within investing activities, which represent ongoing payments for acquisitions.
Gross capital expenditure is reported as key money, maintenance, recyclable or System Fund. Contract acquisition costs are defined as either key money or recyclable, depending on whether they form part of other recyclable investments, such as any difference between the face and market value of an owner loan on inception.
This disaggregation provides useful information as it enables users to distinguish between:
Management believes gross capital expenditure is a useful measure as it illustrates how the Group continues to invest in the business to drive growth. It also allows for comparison year-on-year.
Net capital expenditure provides an indicator of the capital intensity of IHG's business model. Net capital expenditure is derived from net cash from investing activities, which includes receipts such as those arising from disposals and distributions from associates and joint ventures, adjusted to include contract acquisition costs (net of repayments) and interest receipts from owner loans, and to exclude payments and repayments related to investments supporting the Group's insurance activities, finance lease income and any material investments made in acquiring businesses, including any subsequent payments of deferred or contingent purchase consideration included within investing activities which are typically non-recurring in nature.
In addition, System Fund depreciation and amortisation relating to property, plant and equipment and intangible assets, respectively, is added back, reducing the overall cash outflow. This reflects the way in which System Funded capital investments are recovered from the System Fund, over the life of the asset.
Management believes net capital expenditure is a useful measure as it illustrates the net capital investment by IHG, after taking into account capital recycling through asset disposal and the funding of strategic investments by the System Fund. It provides investors and other stakeholders with visibility of the cash flows which are allocated to long-term investments to drive the Group's strategy.
The following definitions have been amended and prior year reconciliations have been re-presented accordingly:
The definition of adjusted free cash flow was amended to reflect changes in the business over recent years, in particular more complex deal structures which can mean that cash flows from those investments are accounted for on a split basis across the Group statement of cash flows. The amended definition aims to eliminate those inconsistencies. The effect of the changes to the adjusted free cash flow definition also ensure that recurring, non-discretionary cash flows are better captured within adjusted free cash flow, and that exceptional cash flows, which can vary significantly from year-to-year are not distorting comparability. Changes have also been made to distinguish between the different underlying nature of contract acquisition costs e.g. key money and contract assets arising from owner loans, which better reflects the way these investments are considered by management and for consistency with the presentation of related assets.
The changes to gross and net capital expenditure definitions in relation to contract acquisition costs and interest receipts align with the changes to the definition of adjusted free cash flow. The change to exclude investments supporting the Group's insurance activities and finance lease income better reflects the non-discretionary nature of these activities.
| Reportable segments | Revenue | Operating profit | |||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | % | 2024 | 2023 | % | ||
| \$m | \$m | change | \$m | \$m | change | ||
| Per Group income statement | 4,923 | 4,624 | 6.5 | 1,041 | 1,066 | (2.3) | |
| System Fund and reimbursables | (2,611) | (2,460) | 6.1 | 83 | (19) | NMb | |
| Operating exceptional items | - | - | - | - | (28) | NMb | |
| Reportable segments | _____ 2,312 |
_____ 2,164 |
_____ 6.8 |
_____ 1,124 |
_____ 1,019 |
_____ 10.3 |
|
| Reportable segments analysed as: | |||||||
| Fee business | 1,774 | 1,672 | 6.1 | 1,085 | 992 | 9.4 | |
| Owned, leased and managed lease | 515 | 471 | 9.3 | 45 | 29 | 55.2 | |
| Insurance activities | 23 | 21 | 9.5 | (6) | (2) | 200.0 | |
| Reportable segments | _____ 2,312 |
_____ 2,164 |
_____ 6.8 |
_____ 1,124 |
_____ 1,019 |
_____ 10.3 |
| Revenue | Operating profit | ||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | % | 2024 | 2023 | % | ||
| \$m | \$m | change | \$m | \$m | Change | ||
| Reportable segments (see above) | 2,312 | 2,164 | 6.8 | 1,124 | 1,019 | 10.3 | |
| Owned, leased and managed lease asset disposala |
(8) | (10) | (20.0) | 4 | 3 | 33.3 | |
| Currency impact | - | (7) | NMb | - | (12) | NMb | |
| ____ | ____ | _____ | _____ | _____ | _____ | ||
| Underlying revenue and underlying operating profit |
2,304 | 2,147 | 7.3 | 1,128 | 1,010 | 11.7 |
a. The results of one Regent hotel are removed in 2024 (being the year of lease expiration) and in 2023 to determine the underlying growth. b. Percentage change considered not meaningful, such as where a positive balance in the latest period is comparable to a negative or zero balance in the prior period.
| Revenue | Operating profit | |||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | % | 2024 | 2023 | % | |
| \$m | \$m | change | \$m | \$m | change | |
| Reportable segments fee business (see above) |
1,774 | 1,672 | 6.1 | 1,085 | 992 | 9.4 |
| Currency impact | - | (9) | NMa | - | (11) | NMa |
| Underlying fee revenue and underlying fee operating profit |
_____ 1,774 |
_____ 1,663 |
_____ 6.7 |
_____ 1,085 |
_____ 981 |
_____ 10.6 |
a. Percentage change considered not meaningful, such as where a positive balance in the latest period is comparable to a negative or zero balance in the prior period.
| Revenue | Operating profita | |||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | % | 2024 | 2023 | % | |
| \$m | \$m | change | \$m | \$m | change | |
| Per financial statements | 1,141 | 1,105 | 3.3 | 828 | 815 | 1.6 |
| Reportable segments analysed as: |
||||||
| Fee business | 979 | 957 | 2.3 | 795 | 787 | 1.0 |
| Owned, leased and managed lease |
162 | 148 | 9.5 | 33 | 28 | 17.9 |
| _____ 1,141 |
_____ 1,105 |
_____ 3.3 |
_____ 828 |
_____ 815 |
_____ 1.6 |
|
| Reportable segments (see above) | 1,141 | 1,105 | 3.3 | 828 | 815 | 1.6 |
| Currency impact | - | (3) | NMb | - | (4) | NMb |
| Underlying revenue and underlying operating profit |
_____ 1,141 |
_____ 1,102 |
_____ 3.5 |
_____ 828 |
_____ 811 |
_____ 2.1 |
| Owned, leased and managed lease included in the above |
(162) | (148) | 9.5 | (33) | (27) | 22.2 |
| Underlying fee business | _____ 979 |
_____ 954 |
_____ 2.6 |
_____ 795 |
_____ 784 |
_____ 1.4 |
a. Before exceptional items. b. Percentage change considered not meaningful, such as where a positive balance in the latest period is comparable to a negative or zero balance in the prior period.
| Revenue | Operating profita | |||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | % | 2024 | 2023 | % | |
| \$m | \$m | change | \$m | \$m | change | |
| Per financial statements | 748 | 677 | 10.5 | 270 | 215 | 25.6 |
| Reportable segments analysed as: | ||||||
| Fee business | 395 | 354 | 11.6 | 258 | 214 | 20.6 |
| Owned, leased and managed lease | 353 | 323 | 9.3 | 12 | 1 | 1,100.0 |
| _____ 748 |
_____ 677 |
_____ 10.5 |
_____ 270 |
_____ 215 |
_____ 25.6 |
|
| Reportable segments (see above) | 748 | 677 | 10.5 | 270 | 215 | 25.6 |
| Owned, leased and managed lease disposalc |
(8) | (10) | (20.0) | 4 | 3 | 33.3 |
| Currency impact | - | (3) | NMb | - | (5) | NMb |
| Underlying revenue and underlying operating profit |
_____ 740 |
_____ 664 |
_____ 11.4 |
_____ 274 |
_____ 213 |
_____ 28.6 |
| Owned, leased and managed lease included in the above |
(345) | (314) | 9.9 | (16) | (4) | 300.0 |
| Underlying fee business | _____ 395 |
_____ 350 |
_____ 12.9 |
_____ 258 |
_____ 209 |
____ 23.4 |
a. Before exceptional items. b. Percentage change considered not meaningful, such as where a positive balance in the latest period is comparable to a negative or zero balance in the prior period. c. The results of one Regent hotel are removed in 2024 (being the year of lease expiration) and in 2023 to determine the underlying growth.
| Greater China | ||||||
|---|---|---|---|---|---|---|
| Revenue | Operating profita | |||||
| 2024 | 2023 | % | 2024 | 2023 | % | |
| \$m | \$m | change | \$m | \$m | change | |
| Per financial statements | 161 | 161 | - | 98 | 96 | 2.1 |
| Reportable segments analysed as: | ||||||
| Fee business | 161 | 161 | - | 98 | 96 | 2.1 |
| ____ 161 |
_____ 161 |
_____ - |
_____ 98 |
_____ 96 |
_____ 2.1 |
|
| Reportable segments (see above) | 161 | 161 | - | 98 | 96 | 2.1 |
| Currency impact | - | (2) | NMb | - | (1) | NMb |
| Underlying revenue and underlying operating profit |
_____ 161 |
_____ 159 |
____ 1.3 |
_____ 98 |
_____ 95 |
_____ 3.2 |
a. Before exceptional items. b. Percentage change considered not meaningful, such as where a positive balance in the latest period is comparable to a negative or zero balance in the prior period.
12 months ended 31 December 2023
| Fee margin % | 81.2% | 65.3% | 60.9% | (27.6)% | 61.2% |
|---|---|---|---|---|---|
| 795 | 258 | 98 | (66) | 1,085 | |
| Reportable segments analysed as fee business (see above) |
795 _____ |
258 _____ |
98 _____ |
(66) _____ |
1,085 _____ |
| Operating profit \$m | |||||
| _____ 979 |
_____ 395 |
_____ 161 |
_____ 239 |
_____ 1,774 |
|
| Reportable segments analysed as fee business (see above) |
979 | 395 | 161 | 239 | 1,774 |
| Revenue \$m | |||||
| Americas | EMEAA | Greater China |
Central | Total |
| Americas | EMEAA | Greater China |
Central | Total | |
|---|---|---|---|---|---|
| Revenue \$m | |||||
| Reportable segments analysed as fee business (see above) |
957 | 354 | 161 | 200 | 1,672 |
| _____ 957 |
_____ 354 |
_____ 161 |
_____ 200 |
_____ 1,672 |
|
| Operating profit \$m | |||||
| Reportable segments analysed as fee business (see above) |
787 | 214 | 96 | (105) | 992 |
| _____ 787 |
_____ 214 |
_____ 96 |
_____ (105) |
_____ 992 |
|
| Fee margin % | 82.2% | 60.5% | 59.6% | (52.5)% | 59.3% |
| 12 months ended 31 December | |||
|---|---|---|---|
| 2024 | 2023a Re-presented |
||
| \$m | \$m | ||
| Net cash from investing activities | (99) | (137) | |
| Adjusted for: | |||
| Contract acquisition costs, net of repayments | (237) | (101) | |
| System Fund depreciation and amortisationb | 82 | 81 | |
| Payment of deferred purchase consideration | 10 | - | |
| (Repayments)/payments related to investments supporting the Group's insurance activities |
(5) | 11 | |
| Finance lease receipts | (4) ______ |
- ______ |
|
| Net capital expenditure | (253) | (146) | |
| Further adjusted for: | |||
| Disposals and repayments, including other financial assets |
(15) | (8) | |
| Repayment of contract acquisition costs | - | (7) | |
| System Fund depreciation and amortisationb | (82) ______ |
(81) ______ |
|
| Gross capital expenditure | (350) | (242) |
| Analysed as: | Gross | Repaid | Net | Gross | Repaid | Net |
|---|---|---|---|---|---|---|
| Key money contract acquisition costs | (206) | - | (206) | (108) | 7 | (101) |
| Maintenance | (31) | - | (31) | (38) | - | (38) |
| Recyclable capital expenditure | ||||||
| Recyclable contract acquisition costs | (31) | - | (31) | - | - | - |
| Other recyclable investments | (37) | 15 | (22) | (50) | 8 | (42) |
| Capital expenditure: System Fund investments | (45) | 82 | 37 | (46) | 81 | 35 |
| Total capital expenditure | ______ (350) |
______ 97 |
______ (253) |
______ (242) |
______ 96 |
______ (146) |
a. Re-presented to reflect the updated definition of gross and net capital expenditure – see page 32 to 33. b. Excludes depreciation of right-of-use assets.
| 2024 \$m |
2023 Re-presenteda \$m |
|
|---|---|---|
| Net cash from operating activities | 724 | 893 |
| Adjusted for: | ||
| Purchase of shares by employee share trusts | (27) | (8) |
| Gross maintenance capital expenditure | (31) | (38) |
| Cash flows relating to exceptional items | (8) | 29 |
| Principal element of lease payments | (46) | (28) |
| Deferred purchase consideration | 3 | - |
| Recyclable contract acquisition costs | 31 | - |
| Repayments/(payments) related to investments supporting the Group's insurance activities |
5 | (11) |
| Finance lease receipts | 4 _____ |
- _____ |
| Adjusted free cash flow | 655 _____ |
837 _____ |
Re-presented to reflect the updated definition of adjusted free cash flow – see page 32 to 33.
| 12 months ended 31 December |
||
|---|---|---|
| 2024 | 2023 | |
| \$m | \$m | |
| Net financial expenses | ||
| Financial income | 63 | 39 |
| Financial expenses | (203) | (91) |
| _____ (140) |
_____ (52) |
|
| Adjusted for: | ||
| Interest attributable to the System Fund | (50) | (44) |
| Foreign exchange losses/(gains) | 25 | (35) |
| _____ (25) |
_____ (79) |
|
| Adjusted interest | _____ (165) |
_____ (131) |
| _____ | _____ |
| 2024 | 2023 | ||||||
|---|---|---|---|---|---|---|---|
| Profit before tax \$m |
Tax \$m |
Tax rate |
Profit before tax \$m |
Tax \$m |
Tax rate |
||
| Group income statement Adjust to exclude: |
897 | (269) | 30.0% | 1,010 | (260) | 25.7% | |
| Operating exceptional items | - | - | (28) | 7 | |||
| Foreign exchange losses/(gains) | 25 | 3 | (35) | (3) | |||
| System Fund | 83 | 4 | (19) | 3 | |||
| Interest attributable to the System Fund | (50) | - | (44) | - | |||
| Fair value losses on contingent purchase consideration |
4 | - | 4 | - | |||
| Adjusted tax and tax rate | _____ 959 |
_____ (262) |
27.3% | ____ 888 |
_____ (253) |
28.5% |
| 12 months ended 31 December |
||
|---|---|---|
| 2024 | 2023 | |
| \$m | \$m | |
| Profit available for equity holders | 628 | 750 |
| Adjusting items: | ||
| System Fund and reimbursable result | 83 | (19) |
| Interest attributable to the System Fund | (50) | (44) |
| Operating exceptional items | - | (28) |
| Fair value losses on contingent purchase consideration | 4 | 4 |
| Foreign exchange losses/(gains) | 25 | (35) |
| Tax attributable to the System Fund | 4 | 3 |
| Tax on foreign exchange losses/(gains) | 3 | (3) |
| Tax on exceptional items | - | 7 |
| Adjusted earnings | _____ 697 |
_____ 635 |
| Basic weighted average number of ordinary shares (millions) | 161.2 | 169.0 |
| Adjusted earnings per ordinary share (cents) | 432.4 | 375.7 |
| 2024 Year ended 31 December |
2023 Year ended 31 December |
|
|---|---|---|
| \$m | \$m | |
| Revenue from fee business | 1,774 | 1,672 |
| Revenue from owned, leased and managed lease hotels | 515 | 471 |
| Revenue from insurance activities | 23 | 21 |
| System Fund and reimbursable revenues | 2,611 | 2,460 |
| Total revenue (notes 3 and 4) | _____ 4,923 |
_____ 4,624 |
| Cost of sales | (745) | (742) |
| System Fund and reimbursable expenses | (2,694) | (2,441) |
| Administrative expenses | (359) | (338) |
| Insurance expenses | (29) | (23) |
| Share of profits of associates and joint ventures | 10 | 31 |
| Other operating income | 10 | 21 |
| Depreciation and amortisation | (65) | (67) |
| Impairment (loss)/reversal on financial assets | (10) | 1 |
| Other net impairment reversals | - | - |
| _____ | _____ | |
| Operating profit (note 3) | 1,041 | 1,066 |
| Operating profit analysed as: | ||
| Operating profit before System Fund, reimbursables and exceptional items |
1,124 | 1,019 |
| System Fund and reimbursable result | (83) | 19 |
| Operating exceptional items (note 5) | - _____ |
28 _____ |
| 1,041 | 1,066 | |
| Financial income | 63 | 39 |
| Financial expenses | (203) | (91) |
| Fair value losses on contingent purchase consideration | (4) | (4) |
| _____ | _____ | |
| Profit before tax | 897 | 1,010 |
| Tax (note 6) | (269) | (260) |
| Profit for the year | _____ 628 |
_____ 750 |
| _____ | _____ | |
| Attributable to: | ||
| Equity holders of the parent Non-controlling interest |
628 - |
750 - |
| _____ 628 |
_____ 750 |
|
| _____ | _____ | |
| Earnings per ordinary share (note 8) Basic |
389.6¢ | 443.8¢ |
| Diluted | 385.3¢ | 441.2¢ |
| 2024 Year ended 31 December |
2023 Year ended 31 December |
|
|---|---|---|
| \$m | \$m | |
| Profit for the year | 628 | 750 |
| Other comprehensive income/(loss) | ||
| Items that may be subsequently reclassified to profit or loss: Losses on cash flow hedges, including related tax charge of \$11m (2023: \$nil) (Losses)/gains on net investment hedges Costs of hedging Hedging losses reclassified to financial expenses Exchange gains/(losses) on retranslation of foreign operations, including related tax charge of \$2m (2023: \$4m) |
(124) (7) (11) 165 4 _____ 27 |
(30) 15 - 28 (137) _____ (124) |
| Items that will not be reclassified to profit or loss: Gains/(losses) on equity instruments classified as fair value through other comprehensive income, including related tax of \$nil (2023: \$1m charge) Re-measurement gains/(losses) on defined benefit plans, including related tax of \$nil (2023: \$nil) |
2 4 |
(3) (2) |
| _____ 6 |
_____ (5) |
|
| Total other comprehensive income/(loss) for the year | _____ 33 |
_____ (129) |
| Total comprehensive income for the year | _ 661 ___ |
_ 621 ___ |
| Attributable to: Equity holders of the parent Non-controlling interest |
661 - _____ |
621 - _____ |
| 661 _____ |
621 _____ |
| Equity share capital |
Other reserves* |
Retained earnings |
Non controlling interest |
Total equity |
|
|---|---|---|---|---|---|
| \$m | \$m | \$m | \$m | \$m | |
| At beginning of the year | 141 | (2,487) | 396 | 4 | (1,946) |
| Total comprehensive income for the year | - | 29 | 632 | - | 661 |
| Repurchase of shares, including taxes and transaction costs |
(2) | 2 | (812) | - | (812) |
| Purchase of own shares by employee share trusts |
- | (27) | - | - | (27) |
| Transfer of treasury shares to employee share trusts |
- | (33) | 33 | - | - |
| Release of own shares by employee share trusts |
- | 31 | (31) | - | - |
| Equity-settled share-based cost | - | - | 60 | - | 60 |
| Tax related to share schemes | - | - | 15 | - | 15 |
| Equity dividends paid | - | - | (259) | - | (259) |
| Exchange adjustments | (2) | 2 | - | - | - |
| At end of the year | _ 137 ___ |
_ (2,483) ___ |
_ 34 ___ |
_ 4 ___ |
_ (2,308) ___ |
| Equity share capital \$m |
Other reserves* |
Retained earnings |
Non controlling |
Total equity |
|---|---|---|---|---|
| \$m | \$m | \$m | \$m | |
| 137 | (2,359) | 607 | 7 | (1,608) |
| - | (127) | 748 | - | 621 |
| (765) | ||||
| - | (8) | - | - | (8) |
| - | (21) | 21 | - | - |
| - | 32 | (32) | - | - |
| 51 | ||||
| 11 | ||||
| (248) | ||||
| 7 | (7) | - | - | - |
| 141 | (2,487) | 396 | 4 | _ (1,946) ___ |
| (3) - - - _ ___ |
3 - - - _ ___ |
(765) 51 11 (245) _ ___ |
interest - - - (3) _ ___ |
*Other reserves comprise the capital redemption reserve, shares held by employee share trusts, other reserves, fair value reserve, cash flow hedge reserves and currency translation reserve.
All items within total comprehensive income are shown net of tax.
| 2024 | 2023 | |
|---|---|---|
| 31 December | 31 December | |
| \$m | \$m | |
| ASSETS | ||
| Goodwill and other intangible assets | 1,042 | 1,099 |
| Property, plant and equipment | 146 | 153 |
| Right-of-use assets | 276 | 273 |
| Investment in associates and joint ventures | 51 | 48 |
| Retirement benefit assets | 3 | 3 |
| Other financial assets | 212 | 185 |
| Derivative financial instruments | 4 | 20 |
| Deferred compensation plan investments | 286 | 250 |
| Non-current other receivables | 35 | 13 |
| Deferred tax assets | 122 | 134 |
| Contract costs | 90 | 82 |
| Contract assets | 612 | 424 |
| Total non-current assets | ______ 2,879 |
______ 2,684 |
| Inventories | ______ 4 |
______ 5 |
| Trade and other receivables | 785 | 740 |
| Current tax receivable | 22 | 15 |
| Other financial assets | 7 | 7 |
| Cash and cash equivalents | 1,008 | 1,322 |
| Contract costs | 5 | 5 |
| Contract assets | 38 | 35 |
| Total current assets | ______ 1,869 |
______ 2,129 |
| Total assets | ______ 4,748 |
______ 4,813 |
| ______ | ______ | |
| LIABILITIES | ||
| Loans and other borrowings | (398) | (599) |
| Lease liabilities | (26) | (30) |
| Derivative financial instruments | - | (25) |
| Trade and other payables | (650) | (711) |
| Deferred revenue | (766) | (752) |
| Provisions | (22) | (10) |
| Insurance liabilities | (14) | (12) |
| Current tax payable | (52) ______ |
(51) ______ |
| Total current liabilities | (1,928) ______ |
(2,190) ______ |
| Loans and other borrowings | (2,876) | (2,567) |
| Lease liabilities | (388) | (396) |
| Derivative financial instruments | (78) | - |
| Retirement benefit obligations | (68) | (66) |
| Deferred compensation plan liabilities | (286) | (250) |
| Trade and other payables | (78) | (75) |
| Deferred revenue | (1,294) | (1,096) |
| Provisions | (17) | (26) |
| Insurance liabilities | (25) | (25) |
| Deferred tax liabilities | (18) | (68) |
| ______ | ______ | |
| Total non-current liabilities | (5,128) ______ |
(4,569) ______ |
| Total liabilities | (7,056) | (6,759) |
| Net liabilities | ______ (2,308) |
______ (1,946) |
| EQUITY | ______ | ______ |
| IHG shareholders' equity | (2,312) | (1,950) |
| Non-controlling interest | 4 | 4 |
| Total equity | ______ (2,308) |
______ (1,946) |
| ______ | ______ |
| Profit for the year 628 750 Adjustments reconciling profit for the year to cash flow from operations (note 9) 521 469 _ Cash flow from operations 1,149 1,219 Interest paid (170) (119) Interest received 57 36 Deferred purchase consideration paid (3) - Tax paid (309) (243) _ Net cash from operating activities 724 893 Cash flow from investing activities Purchase of property, plant and equipment (29) (28) Purchase of intangible assets (49) (54) Investment in associates and joint ventures (6) (3) Investment in other financial assets (32) (60) Deferred purchase consideration paid (10) - Disposal of property, plant and equipment 9 - Repayments of other financial assets 11 8 Finance lease receipts 4 - Other investing cash flows 3 - _ Net cash from investing activities (99) (137) _ Cash flow from financing activities Repurchase of shares, including taxes and transaction costs (804) (790) Purchase of own shares by employee share trusts (27) (8) Dividends paid to shareholders (note 7) (259) (245) Dividend paid to non-controlling interest - (3) Issue of long-term bonds, including effect of currency swaps 834 657 Repayment of long-term bonds (547) - Settlement of currency swaps (45) - Principal element of lease payments (46) (28) Net cash from financing activities (894) (417) _ Net movement in cash and cash equivalents, net of overdrafts, in the year (269) 339 Cash and cash equivalents, net of overdrafts, at beginning of the year 1,278 921 Exchange rate effects (18) 18 __ _____ Cash and cash equivalents, net of overdrafts, at end of the year 991 1,278 |
2024 Year ended 31 December \$m |
2023 Year ended 31 December \$m |
|---|---|---|
| _ ___ |
The preliminary consolidated financial statements of InterContinental Hotels Group PLC (the 'Group' or 'IHG') for the year ended 31 December 2024 have been prepared in accordance with UK-adopted international accounting standards and with applicable law and regulations, including the Companies Act 2006, and with International Financial Reporting Standards ('IFRSs') as issued by the International Accounting Standards Board ('IASB'). The preliminary statement of results shown in this announcement does not represent the statutory accounts of the Group and its subsidiaries within the meaning of Section 435 of the Companies Act 2006.
The Group financial statements for the year ended 31 December 2024 were approved by the Board on 17 February 2025. The auditor, PricewaterhouseCoopers LLP, has given an unqualified report in respect of those Group financial statements with no reference to matters to which the auditor drew attention by way of emphasis and no statement under s498(2) or s498(3) of the Companies Act 2006. The Group financial statements for the year ended 31 December 2024 will be delivered to the Registrar of Companies in due course.
The period to 30 June 2026 has been used to complete the going concern assessment.
In adopting the going concern basis for preparing the Group financial statements, the Directors have considered a 'Base Case' scenario, as prepared by management, which assumes Global RevPAR in 2025 and 2026 continues to grow in line with market expectations in each of our regions. The assumptions applied in the Base Case scenario are consistent with those used for Group planning purposes, for impairment testing (impairment tests adjusted for factors specific to individual properties or portfolios) and for assessing recoverability of deferred tax assets.
The Directors have also reviewed a 'Severe Downside Case' which is based on a severe but plausible scenario equivalent to the market conditions experienced through the 2008/2009 global financial crisis. This assumes that trading performance during 2025 starts to worsen and then RevPAR decreases significantly by 17% in 2026.
A large number of the Group's principal risks would result in an impact on RevPAR, which is one of the sensitivities assessed against the headroom available in the Base Case and Severe Downside Case scenarios. Climate risks are not considered to have a significant impact over the period of assessment. Other principal risks that could result in a large one-off incident that has a material impact on cash flow have also been considered, for example a cybersecurity event.
The final one-year extension to the Group's revolving credit facility of \$1,350m was exercised in April 2024 and the facility now matures in 2029. The Group's key covenant requires net debt:EBITDA below 4.0x. See note 10 for additional information. In September 2024 the Group issued a €750m bond. The only debt maturity in the period under consideration is the £300m bond in August 2025. The Base Case assumes new funding is completed in 2025 and 2026 for refinancing purposes, however no additional funding is modelled in the Severe Downside Case.
Under the Base Case and Severe Downside Case, bank covenants are not breached and there is significant headroom to the covenants to absorb multiple additional risks and uncertainties. The Directors also reviewed a number of actions that could be taken, if required, to reduce discretionary spend, creating substantial additional headroom to the covenants.
The Directors reviewed a reverse stress test scenario to determine what decrease in RevPAR would create a breach of the covenants. The Directors concluded that it was very unlikely that a single risk or combination of the risks considered could create the sustained RevPAR impact required, except for a significant global event.
Having reviewed these scenarios, the Directors have a reasonable expectation that the Group has sufficient resources to continue operating until at least 30 June 2026. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
| 2024 | ||||
|---|---|---|---|---|
| Average | Closing | Average | 2023 Closing |
|
| \$1 equivalent | ||||
| Sterling | £0.78 | £0.80 | £0.80 | £0.78 |
| Euro | €0.92 | €0.96 | €0.92 | €0.90 |
| Revenue | 2024 \$m |
2023 \$m |
|---|---|---|
| Americas | 1,141 | 1,105 |
| EMEAA Greater China |
748 161 |
677 161 |
| Central | 262 | 221 |
| Revenue from reportable segments | _____ 2,312 |
_____ 2,164 |
| System Fund and reimbursable revenues | 2,611 | 2,460 |
| Total revenue | _____ 4,923 |
_____ 4,624 |
| _____ | _____ | |
| Profit | 2024 \$m |
2023 \$m |
| Americas EMEAA |
828 270 |
815 215 |
| Greater China | 98 | 96 |
| Central | (72) | (107) |
| Operating profit from reportable segments | _____ 1,124 |
_____ 1,019 |
| System Fund and reimbursable result | (83) | 19 |
| Operating exceptional items (note 5) | - | 28 |
| Operating profit | _____ 1,041 |
_____ 1,066 |
| Net financial expenses | (140) | (52) |
| Fair value losses on contingent purchase consideration | (4) | (4) |
| Profit before tax | _____ 897 |
_____ 1,010 |
| _____ | _____ |
| Year ended 31 December 2024 | ||||||
|---|---|---|---|---|---|---|
| Americas | EMEAA | Greater China |
Central | Group | ||
| \$m | \$m | \$m | \$m | \$m | ||
| Franchise and base management fees | 958 | 277 | 122 | - | 1,357 | |
| Incentive management fees | 21 | 118 | 39 | - | 178 | |
| Central revenue | - | - | - | 239 | 239 | |
| Revenue from fee business | _____ 979 |
_____ 395 |
_____ 161 |
_____ 239 |
_____ 1,774 |
|
| Revenue from owned, leased and managed lease hotels |
162 | 353 | - | - | 515 | |
| Revenue from insurance activities | - | - | - | 23 | 23 | |
| _____ 1,141 |
_____ 748 |
_____ 161 |
_____ 262 |
_____ 2,312 |
||
| System Fund revenues | 1,611 | |||||
| Reimbursable revenues | 1,000 _____ |
|||||
| Total revenue | 4,923 | |||||
| _____ |
Following execution of a revised agreement with the IHG Owners Association, a portion of ancillary revenue from the consumption of certain IHG One Rewards points are reported in Central revenue. The agreed change initially applies to 50% of proceeds from points sold to consumers from 1 January 2024, resulting in approximately \$25m of fee business revenue in 2024 which would have previously been recognised in System Fund and reimbursable revenues, and will increase to 100% from 1 January 2025. In line with the Group's accounting policy, revenue from the sale of points is deferred until the future benefit has been consumed by the member.
| Americas | EMEAA | Greater China |
Central | Group | ||
|---|---|---|---|---|---|---|
| \$m | \$m | \$m | \$m | \$m | ||
| Franchise and base management fees | 936 | 253 | 115 | - | 1,304 | |
| Incentive management fees Central revenue |
21 - |
101 - |
46 - |
- 200 |
168 200 |
|
| Revenue from fee business | _____ 957 |
_____ 354 |
_____ 161 |
_____ 200 |
_____ 1,672 |
|
| Revenue from owned, leased and managed lease hotels |
148 | 323 | - | - | 471 | |
| Revenue from insurance activities | - | - | - | 21 | 21 | |
| _____ 1,105 |
_____ 677 |
_____ 161 |
_____ 221 |
_____ 2,164 |
||
| System Fund revenues Reimbursable revenues |
1,564 896 |
|||||
| Total revenue | _____ 4,624 |
|||||
| _____ |
| 2024 \$m |
2023 \$m |
|
|---|---|---|
| Administrative expenses: Commercial litigation and disputes |
(12) _____ |
- _____ |
| (12) | - | |
| Share of profits of associate | - | 18 |
| Other operating income | - | 10 |
| Impairment reversal on other financial assets | 6 | - |
| Other net impairment reversals: Property, plant and equipment – reversal |
3 | - |
| Contract assets – reversal | 3 | - |
| _____ 6 |
_____ - |
|
| Operating exceptional items | _____ - |
_____ 28 |
| _____ | _____ | |
| Tax on exceptional items | - | (7) |
| Tax | _____ - |
_____ (7) |
| _____ | _____ |
From time to time, the Group is subject to legal proceedings the ultimate outcome of each being always subject to many uncertainties inherent in litigation. In the year to 31 December 2024, the charge for commercial disputes relates to the EMEAA region and includes legal costs. There are several uncertainties remaining including the timing and nature of resolution of the disputes and the value of legal costs ultimately incurred. The costs are presented as exceptional reflecting the quantum of the costs and nature of the disputes.
As part of an agreed settlement of the 2021 Americas commercial dispute in relation to the InterContinental New York Barclay associate, in 2022 the Group was allocated expenses in excess of its actual percentage share which directly reduced the Group's current interest in the associate. This resulted in \$60m of additional expenses being allocated to the Group in 2022, with a current tax benefit of \$15m and, applying equity accounting to this additional share of expenses, reduced the Group's investment to \$nil. In addition, a liability of \$18m was recognised, reflecting an unavoidable obligation to repay this amount in certain circumstances. The value of the liability was linked to the value of the hotel; increases in the property value were attributed first to the Group and were reflected as a reduction of the liability until it was reduced to \$nil.
In 2023, the increase in fair value of the hotel (according to pricing opinions provided by a professional external valuer) resulted in a full reversal of the liability but no further trigger for reversal of previous impairment charges.
The 2023 gain was presented as exceptional by reason of its size, the nature of the agreement and for consistency with the associated charges in 2022 and 2021.
In 2023, related to amounts receivable from the Group's insurer under its business interruption policy for certain owned, leased and managed lease hotels due to Covid-19.
The income was presented as exceptional due to its size.
The 2024 reversal of \$6m relates to impairments originally recorded in 2020. The reversals are presented as exceptional for consistency with the treatment of the corresponding impairments.
An impairment reversal of \$3m was recognised in relation to one hotel in the UK portfolio (EMEAA region) as a result of continued strong performance. The original impairment was recorded in 2020 as a result of the pandemic and was treated as exceptional; the reversal is also classified as exceptional for consistency.
The 2024 reversal of \$3m relates to an impairment originally recorded in 2020. This reversal is presented as exceptional for consistency with the treatment applied in prior years.
| 2024 \$m |
2023 \$m |
|
|---|---|---|
| Current tax Deferred tax |
316 (47) |
273 (13) |
| Tax charge | _ 269 ___ |
_ 260 ___ |
| Further analysed as: | ||
| UK tax Foreign tax |
33 236 |
18 242 |
| _____ 269 |
_____ 260 |
|
| _____ | _____ |
The deferred tax asset has reduced to \$122m (2023: \$134m) in the year and comprises \$99m (31 December 2023: \$113m) in the UK and \$23m (31 December 2023: \$21m) in respect of other territories. The deferred tax asset has been recognised based upon forecasts consistent with those used in the going concern assessment.
| 2024 | 2023 | |||
|---|---|---|---|---|
| cents per | cents per | |||
| share | \$m | share | \$m | |
| Paid during the year: | ||||
| Final (declared for previous year) | 104.0 | 172 | 94.5 | 166 |
| Interim | 53.2 | 87 | 48.3 | 79 |
| _____ 157.2 |
_____ 259 |
_____ 142.8 |
_____ 245 |
|
| _____ | _____ | _____ | _____ |
The final dividend in respect of 2024 of 114.4¢ per ordinary share (amounting to approximately \$180m) is proposed for approval at the AGM on 8 May 2025.
| 2024 | 2023 | |
|---|---|---|
| Basic earnings per ordinary share | ||
| Profit available for equity holders (\$m) | 628 | 750 |
| Basic weighted average number of ordinary shares (millions) | 161.2 | 169.0 |
| Basic earnings per ordinary share (cents) | 389.6 | 443.8 |
| _____ | _____ | |
| Diluted earnings per ordinary share | ||
| Profit available for equity holders (\$m) | 628 | 750 |
| Diluted weighted average number of ordinary shares (millions) | 163.0 | 170.0 |
| Diluted earnings per ordinary share (cents) | 385.3 | 441.2 |
| _____ | _____ | |
| Diluted weighted average number of ordinary shares is calculated as: | ||
| 2024 millions |
2023 millions |
|
| Basic weighted average number of ordinary shares | 161.2 | 169.0 |
| Dilutive potential ordinary shares | 1.8 | 1.0 |
| _____ 163.0 |
_____ 170.0 |
|
| _____ | _____ |
| 2024 \$m |
2023 \$m |
|
|---|---|---|
| Profit for the year Adjustments for: |
628 | 750 |
| Net financial expenses Fair value losses on contingent purchase consideration Income tax charge |
140 4 269 |
52 4 260 |
| Operating profit adjustments: Impairment loss/(reversal) on financial assets Other operating exceptional items Depreciation and amortisation |
10 12 65 _____ |
(1) (28) 67 _____ |
| 87 | 38 | |
| Contract assets deduction in revenue Share-based payments cost Share of profits of associates and joint ventures (before |
43 44 |
37 36 |
| exceptional items) | (10) _____ |
(13) _____ |
| 77 | 60 | |
| System Fund adjustments: Depreciation and amortisation Impairment loss on financial assets Other impairment charges Share-based payments cost Share of losses of associates |
80 9 3 23 2 _____ |
83 - - 20 3 _____ |
| 117 | 106 | |
| Working capital and other adjustments: Increase in deferred revenue Changes in working capital Other adjustments |
214 (151) (7) |
123 (39) (5) |
| _____ 56 |
_____ 79 |
|
| Cash flows relating to exceptional items Contract acquisition costs, net of repayments |
8 (237) _____ |
(29) (101) _____ |
| Total adjustments | 521 | 469 |
| Cash flow from operations | _ 1,149 ___ |
_ 1,219 ___ |
In 2024, increase in deferred revenue includes \$100m of initial upfront payments received in relation to co-branding agreements which will be recognised over the term of those agreements.
| 2024 \$m |
2023 \$m |
|
|---|---|---|
| Cash and cash equivalents | 1,008 | 1,322 |
| Loans and other borrowings – current | (398) | (599) |
| Loans and other borrowings – non-current | (2,876) | (2,567) |
| Lease liabilities – current | (26) | (30) |
| Lease liabilities – non-current | (388) | (396) |
| Principal amounts payable on maturity of derivative financial | ||
| instruments | (102) _____ |
(2) _____ |
| Net debt* | (2,782) | (2,272) |
| _____ | _____ |
* See 'Use of key performance measures and Non-GAAP measures'.
In the Group statement of cash flows, cash and cash equivalents is presented net of \$17m bank overdrafts (31 December 2023: \$44m). Cash and cash equivalents includes \$22m (31 December 2023: \$56m) with restrictions on use.
The revolving credit facility matures in 2029. A variable rate of interest is payable on amounts drawn. There were no amounts drawn as at 31 December 2024 or 31 December 2023.
The RCF contains two financial covenants: interest cover (Covenant EBITDA: Covenant interest payable) of greater than 3.5 and a leverage ratio (Covenant net debt: Covenant EBITDA) of less than 4.0. These are tested at half year and full year on a trailing 12-month basis.
| 2024 | 2023 | |
|---|---|---|
| Covenant EBITDA (\$m) | 1,195 | 1,086 |
| Covenant net debt (\$m) | 2,804 | 2,328 |
| Covenant interest payable (\$m) | 123 | 88 |
| Leverage | 2.35 | 2.14 |
| Interest cover | 9.72 | 12.34 |
| 2024 \$m |
2023 \$m |
|
|---|---|---|
| Net (decrease)/increase in cash and cash equivalents, net of overdrafts |
(269) | 339 |
| Add back financing cash flows in respect of other components of net debt: |
||
| Principal element of lease payments | 46 | 28 |
| Issue of long-term bonds | (834) | (657) |
| Repayment of long-term bonds | 547 | - |
| Settlement of currency swaps | 45 | - |
| _____ (196) |
_____ (629) |
|
| Increase in net debt arising from cash flows | _____ (465) |
_____ (290) |
| Other movements: | ||
| Lease liabilities | (36) | (25) |
| Increase in accrued interest | (6) | (2) |
| Exchange and other adjustments | (3) | (104) |
| _____ (45) |
_____ (131) |
|
| Increase in net debt | _____ (510) |
_____ (421) |
| Net debt at beginning of the year | (2,272) | (1,851) |
| Net debt at end of the year | _____ (2,782) |
_____ (2,272) |
| _____ | _____ |
In the year ended 31 December 2024, 7.5m shares were repurchased for total consideration of \$812m, (including \$20m taxes and transaction costs) and subsequently cancelled. The cost of treasury shares and related transaction costs have been deducted from retained earnings.
In the year ended 31 December 2023, 10.9m shares were repurchased for total consideration of \$790m (including \$28m taxes and transaction costs) and subsequently cancelled. Of the total consideration, \$38m related to the completion of the 2022 programme and \$752m related to the 2023 programme.
For each of the share buyback programmes undertaken, authority was given to the Company at the respective AGM prior to commencement of the buyback.
In February 2025, the Board approved a further \$900m share buyback programme to be completed by the end of 2025. A resolution to renew the authority to repurchase shares will be put to shareholders at the AGM on 8 May 2025.
On 17 February 2025, the Group completed the acquisition of the Ruby brand and related intellectual property ("Ruby brand") from the Ruby Group for initial purchase consideration of €110.5m (\$116m). Future payments to incentivise growth may be payable in 2030 and/or 2035 totalling up to €181m (\$190m), contingent on the number of Ruby branded rooms operated by the seller at the end of the preceding year.
The Group expects to account for the transaction as an asset purchase and to recognise an intangible asset for the Ruby brand at cost, comprising the initial payment and the present value of expected future payments. Due to the proximity of the transaction to the date of these financial statements, the estimate has not been finalised. Further details will be provided in the interim results for 2025.
This announcement contains certain forward-looking statements as defined under United States law (Section 21E of the Securities Exchange Act of 1934) and otherwise. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as 'anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe' or other words of similar meaning. These statements are based on assumptions and assessments made by InterContinental Hotels Group PLC's management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty. There are a number of factors that could cause actual results and developments to differ materially from those expressed in or implied by, such forward-looking statements. The main factors that could affect the business and the financial results are described in the 'Risk Factors' section in the current InterContinental Hotels Group PLC's Annual report and Form 20-F filed with the United States Securities and Exchange Commission.
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