IHG Hotels & Resorts — research brief (BMC #093 on gallery, queue id 177)

Prepared 2026-10-12 (America/Chicago). InterContinental Hotels Group PLC is public (LSE: IHG; NYSE ADRs: IHG), headquartered in the UK, and reports in US dollars on a calendar year (FY2025 = year to Dec 31, 2025, the latest full year). Labels: FACT = stated by IHG in its results releases, SEC Form 6-K filings, Annual Report and Form 20-F, or results presentation. SECONDARY = third-party press (none used). INFERENCE = interpretation by this project.

Sources (accessed 2026-10-12)

Full Year Results to 31 December 2025 (Feb 17, 2026): https://www.ihgplc.com/en/news-and-media/news-releases/2026/full-year-results-for-the-year-to-31-dec-2025
Same release as Form 6-K on SEC EDGAR: https://www.sec.gov/Archives/edgar/data/858446/000165495426001290/a2532t.htm
Annual Report and Form 20-F 2025: https://www.ihgplc.com/~/media/Files/I/Ihg-Plc/investors/annual-report/2025/ihg-ar25-interactive.pdf
Full-year 2025 results presentation: https://www.ihgplc.com/~/media/Files/I/Ihg-Plc/results/2026/full-year-2025/full-year-results-2025-presentation.pdf
Half Year Results to 30 June 2026 (Aug 11, 2026): https://www.ihgplc.com/en/news-and-media/news-releases/2026/half-year-results-for-the-six-months-to-30-june-2026 (Form 6-K: https://www.sec.gov/Archives/edgar/data/858446/000165495426007436/a0528q.htm)
Logo: project monogram ("IHG" on a dark teal tile), not IHG's official logo. Trademark of its owner; identification only.

Teaching arc

IHG is an asset-light brand and distribution company: it owns or leases only 17 of its 6,963 hotels and earns fees as a percentage of other owners' hotel revenue (73% of rooms franchised, 27% managed). Its fee business turned $1,897M of revenue into $1,231M of operating profit (64.8% margin) in FY2025. The loyalty program (160M+ members, 66% of room nights) and booking channels (83% of room revenue) are what owners pay for, funded through a System Fund that passes through IHG's income statement. Growth comes from adding rooms (record 443 openings, 339,526-room pipeline) and RevPAR.

Key figures (FACT unless labeled)

FY2025 total revenue $5,189M vs $4,923M (+5.4%). Composition: fee business $1,897M; owned & leased $544M; insurance activities $27M (= revenue from reportable segments $2,468M, +7%); System Fund $1,717M; reimbursable $1,004M.
Fee business revenue: franchise and base management fees $1,371M (+1%); incentive management fees $190M (+7%); central revenue $336M (+41%; technology fees, co-brand licensing, loyalty point revenue).
Regions FY2025 (reportable segments): Americas revenue $1,129M / operating profit $836M; EMEAA $811M / $303M; Greater China $165M / $99M; Central $363M / $27M.
FY2025 IFRS operating profit $1,198M (+15%); operating profit from reportable segments $1,265M (+13%); fee business operating profit $1,231M; owned & leased $43M; fee margin 64.8% (+3.6 pts: ~2.3 pts efficiency, ~1.3 pts co-brand and loyalty point step-ups). Profit for the year $759M (vs $628M, +20.9%). Basic EPS 490.9¢; adjusted EPS 501.3¢ (+16%). Adjusted EBITDA $1,332M. Net debt $3,333M. Exceptional costs $21M. System Fund and reimbursable result −$46M.
Costs FY2025: fee business overheads $666M (vs $689M); owned & leased expenses $501M; insurance costs $36M. Staff costs $2,200M, of which $792M borne by IHG and $1,408M by System Fund or reimbursed. Average employees 27,849 (7,459 costed to IHG). Net financial expenses $153M.
Trading FY2025: global RevPAR +1.5% (Americas +0.3%, EMEAA +4.6%, Greater China −1.6%); ADR +0.8%; occupancy +0.5 pts. Total gross revenue (hotel revenue across the system, not IHG's) $35.2B: franchised $22.2B, managed $12.5B, owned & leased $0.5B.
System at Dec 31, 2025: 6,963 hotels / 1,026,177 rooms — franchised (incl. exclusive partners) 5,886 / 748,178; managed 1,060 / 273,808; owned & leased 17 / 4,191. Rooms by region: Americas 52%, EMEAA 28%, Greater China 20%. By category: Essentials 60%, Premium 15%, Luxury & Lifestyle 14%, Suites 9%, Exclusive Partners 2%. Holiday Inn Express 3,292 hotels / 351,400 rooms; Holiday Inn 1,247 / 225,926; Crowne Plaza 424 / 113,887.
2025 development: record 443 openings (65,078 rooms), 694 signings (102.1k rooms), 26,026 rooms removed (incl. 7,092 Venetian Las Vegas rooms); net system +4.0% (+4.7% excluding the Venetian). Pipeline 339,526 rooms (2,292 hotels; 59% franchised, 41% managed by rooms).
Brands: 20 at FY2025 end; Ruby acquired Feb 2025 ($120M); Noted Collection launched Feb 17, 2026 as the 21st brand. 306 conversion signings in 2025.
Loyalty and distribution: IHG One Rewards 160M+ members; enrolments +25%; loyalty share of room nights 66% (73% Americas); members spend ~20% more and are ~10x more likely to book direct; Reward Night redemptions +9%. 83% of room revenue through IHG-managed channels; direct digital >26%; 9M app downloads.
System Fund: revenues $1.7B in 2025; marketing spend $542M; owners pay marketing & reservation and loyalty assessments; managed to break even over the long term, not for IHG profit. After a 2024 review IHG lowered its standard loyalty assessment and raised Reward Night reimbursements.
Co-brand: new US co-brand card agreements from Nov 2024, initial term to 2036; fees in operating profit were $39M in 2023, roughly doubled in 2025, expected to more than triple 2023's level by 2028. Chase partnership expanded (Sapphire Reserve status). Revolut UK debit card signed. Loyalty point sales: ~$25M incremental in 2024, doubling in 2025.
Fee model (Annual Report "How we generate revenue"): franchise fees are a fixed percentage of rooms revenue ("RevPAR × rooms × royalty rate"); managed hotels pay a fixed % of total hotel revenue plus typically a share of gross operating profit; exclusive partners pay marketing, distribution and technology fees. Specific royalty rates are not disclosed in these sources and are not used.
Shareholder returns: $900M buyback completed in 2025 plus ordinary dividends; $950M buyback for 2026; total dividend 184.5¢ (+10%).
2026 (half year; never annualized): H1 2026 RevPAR +4.1% (Americas +4.8%, EMEAA +3.0%, Greater China +3.1%); revenue from reportable segments $1,255M (+7%); fee business revenue $971M; fee margin 65.9%; operating profit from reportable segments $665M (+10%); total revenue $2,659M (+6%); IFRS operating profit $671M; profit for the period $425M (−9.4%; 2025 had $79M FX gains). System 1,048,731 rooms (7,109 hotels), net +5.0%; Greater China net rooms +11.7%; pipeline 347,691 rooms (2,385 hotels); conversions 43% of openings and 49% of signings.

Worked example (INFERENCE)

Hotels in IHG's system took in $35.2B in 2025; IHG's fee business revenue was $1,897M, about 5.4 cents of every hotel dollar. Because IHG doesn't pay for the buildings or most hotel staff, $1,231M of that (64.8%) became operating profit.

Atlas notes

primaryTag: take-rate — IHG's own revenue is mostly fees set as a percentage of revenue at hotels owned by others (franchise fees on rooms revenue; base management fees on total hotel revenue). Ranks on FY2025 total IFRS revenue $5.19B (+5.4%), which includes $2.72B of System Fund and reimbursable pass-through revenue; FY2025 net income = profit for the year $759M.

Not used

Analyst estimates, market cap, royalty-rate percentages from third parties, and any annualizing of 2026 half-year figures.

# IHG Hotels & Resorts — research brief (BMC #093 on gallery, queue id 177) Prepared 2026-10-12 (America/Chicago). InterContinental Hotels Group PLC is **public** (LSE: IHG; NYSE ADRs: IHG), headquartered in the UK, and reports in US dollars on a **calendar year** (FY2025 = year to Dec 31, 2025, the latest full year). Labels: **FACT** = stated by IHG in its results releases, SEC Form 6-K filings, Annual Report and Form 20-F, or results presentation. **SECONDARY** = third-party press (none used). **INFERENCE** = interpretation by this project. ## Sources (accessed 2026-10-12) - Full Year Results to 31 December 2025 (Feb 17, 2026): https://www.ihgplc.com/en/news-and-media/news-releases/2026/full-year-results-for-the-year-to-31-dec-2025 - Same release as Form 6-K on SEC EDGAR: https://www.sec.gov/Archives/edgar/data/858446/000165495426001290/a2532t.htm - Annual Report and Form 20-F 2025: https://www.ihgplc.com/~/media/Files/I/Ihg-Plc/investors/annual-report/2025/ihg-ar25-interactive.pdf - Full-year 2025 results presentation: https://www.ihgplc.com/~/media/Files/I/Ihg-Plc/results/2026/full-year-2025/full-year-results-2025-presentation.pdf - Half Year Results to 30 June 2026 (Aug 11, 2026): https://www.ihgplc.com/en/news-and-media/news-releases/2026/half-year-results-for-the-six-months-to-30-june-2026 (Form 6-K: https://www.sec.gov/Archives/edgar/data/858446/000165495426007436/a0528q.htm) - Logo: project monogram ("IHG" on a dark teal tile), **not** IHG's official logo. Trademark of its owner; identification only. ## Teaching arc **IHG is an asset-light brand and distribution company: it owns or leases only 17 of its 6,963 hotels and earns fees as a percentage of other owners' hotel revenue (73% of rooms franchised, 27% managed). Its fee business turned $1,897M of revenue into $1,231M of operating profit (64.8% margin) in FY2025. The loyalty program (160M+ members, 66% of room nights) and booking channels (83% of room revenue) are what owners pay for, funded through a System Fund that passes through IHG's income statement. Growth comes from adding rooms (record 443 openings, 339,526-room pipeline) and RevPAR.** ## Key figures (FACT unless labeled) - **FY2025 total revenue $5,189M** vs $4,923M (**+5.4%**). Composition: fee business $1,897M; owned & leased $544M; insurance activities $27M (= revenue from reportable segments $2,468M, +7%); System Fund $1,717M; reimbursable $1,004M. - Fee business revenue: franchise and base management fees $1,371M (+1%); incentive management fees $190M (+7%); central revenue $336M (+41%; technology fees, co-brand licensing, loyalty point revenue). - Regions FY2025 (reportable segments): Americas revenue $1,129M / operating profit $836M; EMEAA $811M / $303M; Greater China $165M / $99M; Central $363M / $27M. - FY2025 IFRS operating profit **$1,198M** (+15%); operating profit from reportable segments $1,265M (+13%); fee business operating profit $1,231M; owned & leased $43M; fee margin 64.8% (+3.6 pts: ~2.3 pts efficiency, ~1.3 pts co-brand and loyalty point step-ups). **Profit for the year $759M** (vs $628M, +20.9%). Basic EPS 490.9¢; adjusted EPS 501.3¢ (+16%). Adjusted EBITDA $1,332M. Net debt $3,333M. Exceptional costs $21M. System Fund and reimbursable result −$46M. - Costs FY2025: fee business overheads $666M (vs $689M); owned & leased expenses $501M; insurance costs $36M. Staff costs $2,200M, of which $792M borne by IHG and $1,408M by System Fund or reimbursed. Average employees 27,849 (7,459 costed to IHG). Net financial expenses $153M. - Trading FY2025: global RevPAR +1.5% (Americas +0.3%, EMEAA +4.6%, Greater China −1.6%); ADR +0.8%; occupancy +0.5 pts. Total gross revenue (hotel revenue across the system, not IHG's) $35.2B: franchised $22.2B, managed $12.5B, owned & leased $0.5B. - System at Dec 31, 2025: 6,963 hotels / 1,026,177 rooms — franchised (incl. exclusive partners) 5,886 / 748,178; managed 1,060 / 273,808; owned & leased 17 / 4,191. Rooms by region: Americas 52%, EMEAA 28%, Greater China 20%. By category: Essentials 60%, Premium 15%, Luxury & Lifestyle 14%, Suites 9%, Exclusive Partners 2%. Holiday Inn Express 3,292 hotels / 351,400 rooms; Holiday Inn 1,247 / 225,926; Crowne Plaza 424 / 113,887. - 2025 development: record 443 openings (65,078 rooms), 694 signings (102.1k rooms), 26,026 rooms removed (incl. 7,092 Venetian Las Vegas rooms); net system +4.0% (+4.7% excluding the Venetian). Pipeline 339,526 rooms (2,292 hotels; 59% franchised, 41% managed by rooms). - Brands: 20 at FY2025 end; Ruby acquired Feb 2025 ($120M); Noted Collection launched Feb 17, 2026 as the 21st brand. 306 conversion signings in 2025. - Loyalty and distribution: IHG One Rewards 160M+ members; enrolments +25%; loyalty share of room nights 66% (73% Americas); members spend ~20% more and are ~10x more likely to book direct; Reward Night redemptions +9%. 83% of room revenue through IHG-managed channels; direct digital >26%; 9M app downloads. - System Fund: revenues $1.7B in 2025; marketing spend $542M; owners pay marketing & reservation and loyalty assessments; managed to break even over the long term, not for IHG profit. After a 2024 review IHG lowered its standard loyalty assessment and raised Reward Night reimbursements. - Co-brand: new US co-brand card agreements from Nov 2024, initial term to 2036; fees in operating profit were $39M in 2023, roughly doubled in 2025, expected to more than triple 2023's level by 2028. Chase partnership expanded (Sapphire Reserve status). Revolut UK debit card signed. Loyalty point sales: ~$25M incremental in 2024, doubling in 2025. - Fee model (Annual Report "How we generate revenue"): franchise fees are a fixed percentage of rooms revenue ("RevPAR × rooms × royalty rate"); managed hotels pay a fixed % of total hotel revenue plus typically a share of gross operating profit; exclusive partners pay marketing, distribution and technology fees. Specific royalty rates are not disclosed in these sources and are not used. - Shareholder returns: $900M buyback completed in 2025 plus ordinary dividends; $950M buyback for 2026; total dividend 184.5¢ (+10%). - 2026 (half year; never annualized): H1 2026 RevPAR +4.1% (Americas +4.8%, EMEAA +3.0%, Greater China +3.1%); revenue from reportable segments $1,255M (+7%); fee business revenue $971M; fee margin 65.9%; operating profit from reportable segments $665M (+10%); total revenue $2,659M (+6%); IFRS operating profit $671M; profit for the period $425M (−9.4%; 2025 had $79M FX gains). System 1,048,731 rooms (7,109 hotels), net +5.0%; Greater China net rooms +11.7%; pipeline 347,691 rooms (2,385 hotels); conversions 43% of openings and 49% of signings. ## Worked example (INFERENCE) Hotels in IHG's system took in $35.2B in 2025; IHG's fee business revenue was $1,897M, about 5.4 cents of every hotel dollar. Because IHG doesn't pay for the buildings or most hotel staff, $1,231M of that (64.8%) became operating profit. ## Atlas notes - primaryTag: **take-rate** — IHG's own revenue is mostly fees set as a percentage of revenue at hotels owned by others (franchise fees on rooms revenue; base management fees on total hotel revenue). Ranks on FY2025 total IFRS revenue $5.19B (+5.4%), which includes $2.72B of System Fund and reimbursable pass-through revenue; FY2025 net income = profit for the year $759M. ## Not used - Analyst estimates, market cap, royalty-rate percentages from third parties, and any annualizing of 2026 half-year figures.